I think you'll find that lenders can be dramatically different from one another, especially when comparing national banks to local banks and credit unions.I would say visit a couple more banks, be forthcoming with your situation, and see what they say.

The low income element, with SEC 8 or not, makes screening harder, maintaining harder, and collecting harder.

I compared the rent to other townhouses in the area, there are some going from $800-1200. yes, the house did build equity.

But it really comes down to the comparable in each market.  

If you are trying to compare various methods of passive REI, I wrote an article on BP awhile back that takes a look at Three Key Routes for Passive Real Estate Investing

We will pay a $3,500 upfront fee to get started with F&G which is cheap compared to the 10% fee that MCC would charge on the total amount of business credit that they obtained for you.

Parts of it have been, such as the Leonidas area on the West side of Carrollton and also the East side of Carrollton. 70118 also includes the Black Pearl neighborhood and the areas around Audubon Park which are vastly different neighborhoods compared to around Eagle and Palm. 

@John Edrisy equally important element of price is how's the utilization today and can I re-position the property.

Third you get better interest rates on a primary residence compared to an investment property.

But is it reasonable to account for paydown when calculating return to compare to a stock market investment?