We were told by DHS that she doesn't qualify for government assistance because she was going to college but not working.

If you need a government insured loan, the best you are going to get is 6%, which will basically cover closing costs.

I was a bit worried by how far outside of the city these areas are and whether they would remain rentable and commutable if the government contracts and the local economy worsens.I'm guessing the areas you have in mind would be at least 45 minutes or so out... as you know, traffic here is a nightmare. 

However, thanks to our Federal Government manipulating interest rates, the annual interest on Tenant Security Deposits amounts to just pennies.

What I have learned is that you need to loan as personal loans not "mortgages"  if you do more than 4 mortgages than the federal government sees you as a lender and will require you to have all the licensing, etc that comes along with that.   

Plus you have the added protection of knowing that your deposit is backed by the Federal Government.  

@Daniel Okorie What rent amount per unit would you anticipate bringing in if the Section 8 tenants moved out and were replaced by typical renters without government rent assistance?

The lottery period is not open for investors either as it is the period for select properties only open to Government organizations and non profits

Books that teaches the correct information about taxes and / or the government part about investing in real estate.

I am seeking to learn more about Real Estate Investing and ways to invest in property the government provides tax incentives.