Submitting a form D to the SEC is negligible and then each state someone is in that invests you must file a form d in that state as well which can bea  few bucks to a few hundred bucks.Where you will incur the greatest cost is raising the actual capital and marketing etc. 

I haven't posted in a while, and most I talk to have stated the slack in the market and slowed down with others who have backed off on buying/investing.

HABD SAFMR states that a 2/1 with 2 people in property’s zipcode on voucher maxes out at $1356, current rent is $779, and when I search for comps on multiple platforms I see the low range being $860 and higher end of median $1150.

Also, I am guessing that due to the state of the house, it would not qualify for a conventional loan?

For example in my state (PA) as of this year you need to have a real estate license to wholesale. 2.

.: I invest out of state in C-class neighborhoods in the Midwest.

Just stating that waiting will also likely make the cost of what you want to buy go up if the last 98 years of real estate data provides the future direction.

You state that you have 20% - 25% equity position for safety, but you don't based on the information you gave. 

You already live 12 states away.

Sounds like an easily executable deal from what you've stated but likely need more color to offer path forward, terms, etc.