Look at the threshold carefully.

I am not aware of too many wholesales that require the grass to be cut in order to double your money. 

Do they care about various situations (family with kids, etc)? 

Maybe if you have off the charts risk tolerance...... but someone wanting to retire probably A) doesn't want to deal w/ master lease and B) doesn't care to learn about the benefit of a master lease.Even if avg price was 50k, how many people w/ almost 2mil cash for the down payment or who can qualify for 7+ mil loan are going to want to invest in Mesquite, TX (which has less than 200k people)....

I would take careful notes of how the story changed and send a formal demand for the return of your security deposit - I'd fight it for justice, but there isn't shame in backing away (and not giving them any more money) if you're not up to the fight.

Due to the our health care system unpaId medical bIlls are not unusual.Perhaps the property could be marketed more aggressively to attract more renters?

@Nicholas Hytla i would be careful though about overleveraging yourself though as you are just beginning to expand your family.

The only thing I really got going for myself is forced appreciation after I rehab the place for an ARV of 425k and that I cut some of my prior living expenses to about 50%. 

Yup, @Brian Adzadi is right - you cut your pool of buyers down to almost nothing. 

It has been a good a great experience for me and I am trying to convert some of my other properties to section 8.The tenants take good care of my houses because if they don't they get kicked out of the program and they lose their free money.Section 8 pays 110% of market rents also