The monthly cost is high, but we currently are cashflow positive about $1,200 a month.

While having high standards is important, it's worth considering that many Section 8 tenants might not meet requirements like a 640 credit score or $90,000 in household income.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

In high barrier markets, rents have gotten stronger but not the double digit growth we had seen, which was an anomaly.  

With that said, I've done some research on the market and found the following information helpful in my considerations for Phoenix that you might find helpful as well:  Demand for both buying and renting property remains high due to the city's strong economy and growing population. 

When Trying to qualify for a traditional loan, lenders usually price your purchasing power at 3x your net income.

I've seen plenty of high end places that still use metal frames, nobody cares/notices.

So, we have to "hope" they have a very high integrity level.

The first agent is absolutely certain the house will sell in the high 400’s.

I'd highly suggest getting to some local meetup groups in MKE:  https://www.biggerpockets.com/forums/521-real-estate-events-...When you say you are considering alternative financing options, what does that mean?