Also, I'm glad you brought to light how new construction can bring many additional expenses ... $10k for just fencing and erosion control, engineers, and lots of dirt!

Lights A right lighting arrangement can change the look of the house completely.

Right after the deal was done I refinanced my house with the same bank and it was processed in light speed.

Some issues I've found with Section 8 versus hand-picking well-qualified tenants:  most annoying one, although not major, is they don't have much if any expendable income so they will never buy a can of ant spray or Resolve or mulch the yard or any other maintenance that requires any additional small expense, at least in my experience, so prepare to do it all, filters, light bulbs, etc.  

Here is a photo...Obviously the lights need to go.  

You can also assume numbers for the kitchen, baths, mechanicals, lighting, appliances, etc.

@Patrick Snyder , As a former roofing contractor my advice is to tread lightly.

(this was my estimate with input from the realtor who apparently does demo on the side)- All new flooring (combination of carpet, laminate, vinyl)- All new interior doors and hardware (6 panel hollow)- New (matching) light fixtures- Most or all new interior trim- New counter tops with modification to remove partial wall and add breakfast bar to open space between kitchen and dining room- Refinish existing cabinets- New bathroom fixtures (vanity, sink, toilet, tub) in both bathrooms- Likely sub-floor repair due to the significant amount of pet damageThe major areas that I didn't look closely at (because of the pile of junk in the way) but would certainly need to if I was considering this include the mechanicals (AC compressor appeared original), septic system, well, a closer look at the roof, and a closer look at the deck. 

If you have concern about wholesale property drying up, slowdown or reversal in home prices, then tread lightly, imo.

Create small "Local" offices around various medical centers to create space for follow up and light office visits.