You get paid a 5% acquisition fee and regular cash flow with low risk.

now if you could get a seller to be the bank I get that you could smoke and mirror those deals.. but i would think those would be picked over low value or properties in the worst areas of town etc..   

It allows you to take advantage of a low down payment loan.

Low vacancy rates, rising rents, and high tenant demand for more space/good school districts. 

Quote from @Jaycee Greene: Assuming you pay asking price, I'd estimate the down payment for something like that using a hard money loan (HML) would be around 40% of the purchase price and your monthly payment would be $2,600 with an interest rate in the low 7% range (probably need a 700+ credit score to get that).

As you grow your portfolio, keep an eye out for lenders who offer low down payment options for investors or those that allow leveraging the equity from your existing properties to fund new ones. 

If my target would be low income residents, are there any grants, tax credits, or funds available to help me with the conversion? 

Rents are generally low there as well, but definitely stable.

Prices are low and they hit the bottom during the real estate crash.

Mortgage rates and PMLs are 8-12% plus points right now so the deal has to be a low enough entry.