The area itself is filled with $500k+ homes (up to a few million dollars), and buyers with that kind of money tend to be picky.We're considering refinancing (out of our hard money) and turn it into a rental, airbnb, or lease option and wait until they eventually move out (since these "tent cities" tend to stay in a place for 3 months to a couple of years)... but who would want to live in the house across from the homeless? 

I am in the process of re-tooling my career, and have always been attracted to the real estate industry.

. $400M on a USDA loan looks a lot less attractive to me than $380M on a conventional loan where the borrower(buyer) needs financing.

Conservatively, I project that I could raise the rent by at least $100 per unit when all is said and done, and of course, nice-looking units will attract reliable, long-term tenants.On the other hand, am I going over the top?

I can give you a few ideas on how to go about building a campaign to attract investors and partners.

Hi,Not sure if this makes sense, here is my grand plan1) Buy few Duplexes/Fourplexes that give cash flow (around 5, and as many as possible)2) 20 years later with substantial appreciation, use 1031 to buy a million dollar home. 3) rent for reasonable period, say 2 years4) MOVEIN to the home, to make it primary residence. 5) After 2 years SELL. no tax for first 500K.

Your mortgage will not be as attractive because it wouldn't be owner occupied (higher rate and higher down payment required).  

Jumping back to off market opportunities, I have a guy that I use who specializes in the student housing sector and he builds about 20 million in assets each year in that space and keeps about 80% for himself and sells the remaining through 2 or 3 small channels and they are always at about 98% occupancy so I say that to say that it is really not that difficult to find a property that qualifies and then you always have the fail safe options if you are pushed up against a wall. 

You WON'T make millions off what you KNOW, you'll make MILLIONS of what you DO with what you know.

The attractiveness of yield is causing some blindness.