Which would have kept more money in my pocket.

It sounds attractive because everyone says it is low- or no-money down, but if you don't have money to make the deal another way, you don't have much leverage to make the deal the way you are suggesting.Sub to and seller finance are shiny objects for people who want to get started in investing to make money, but have no capital.

I would be using all of my own money for both the acquisition and the rehab.Also, I would (attempt) to GC this myself to save on the rehab.

This strategy requires knowledge of local markets, renovation costs, and the ability to manage or oversee renovations.I am a loan officer and I could advise you on how to tap into that equity and put that money to work.

For Section 8, if they damage your property they will LOSE their Section 8 money.  

Ultimately tenants who pay on time will do so regardless of the discount, so you are probably just throwing money out the door by giving money to people who would just pay on time anyways.I do recommend a discount for electronic payment.

If the tenant fails to complete the job, or does it poorly, you'll have to hire someone to finish/fix it and you'll be out the rent money. 

I'm making too much money in RE, you could not afford me.

@David C.About once a year, I post about finding some absurd amount of money inside the wall of a foreclosed house or behind a water heater in a dark basement.

The old saying goes, buying is where you make all the money, so if you are buying..