We discovered there were lead findings in the due diligence process which caused issues on the lending front.

Either one you choose, 300k (although its normally alot of money) is not enough money to successfully build a facility and to much to put into one project. 

Tenant Screening: Moving forward, enhance your tenant screening process to avoid similar issues.

I primarily want to begin in the section 8 space and would love for anyone with the knowledge and expertise to guide me in this process.

There are a few orginizational processes that are useful in getting started. 

The goal is to eventually rent out the entire house, pull equity out of the first house, and repeat the process.

Toledo pretty much offers the same, if you're set on that city connect with @Engelo Rumora Thanks for the plug mate,Hi Ken,We probably won't be able to assist as we offer turnkey and only to cash buyers.Our lowest entry point is $65,000 and that buys a 2 bedroom, 1 bathroom home that will rent for around $800pm.Plus, I'm pissed of with investors and lately and keeping all deals for myself heheI think you are on the right track with the 43607, 43612 and 43613 zip code.I encourage you to take a look at 43609 and select areas of 43610 and 43620.BRRR out of state is a recipe for disaster but since you are in Michigan, it isn't too bad I guess.Even being as close as you are and even if you lived in Toledo, I would always advise to get professional property management.An investors role is just that, to be an "investor".Elevate and delegate...Sure, you can probably manage 1,2 or 10 properties but that can eventually turn into a full time job.IMO, you should focus on scaling as in finding deals, raising capital, buying more properties, growing your portfolio, etc...And not dealing with tenants and toilets.Wishing you much success

Apparently the client is successful and fairly savvy.  

The Qualified Intermediary will take a lot of the guess work out of the process and hold you hand the entire way. 

If everyone is doing what they are hired to do the process should be turnkey for the investor