On houses below $200k, the 70% rule gives you too low of a profit - you need to lower it the lower you go (ie a $100k ARV would probably be a 60% rule).

Also see if monthly gap might be lower as a mid- or short-term rental.

The HUD guidelines suggest a certain rent amount, but after inspections, the figure came back significantly lower than expected.Additionally, do you have any general tips for working within the bureaucracy of the Section 8 program?

I would definitely factor in some substantial capex/ maintenance and repair costs which could lower your returns.  

The median home price in Milwaukee went up 8.2% in 2024 - and I had to do nothing but wait, compared to a 4 month major construction job.So yeah: BRR(hold) and maybe refinace at some point if/when rates get lower

I would advise you to save up and purchase a house.I'd look for a lower end inexpensive house you can afford and make it a LTR.

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.

Most who try to replace their W2 income invest in less sustainable investment methods: investing in lower tier neighborhoods that cash flow well in spreadsheets or flipping homes.

@Carlos Ptriawan how do you mean, "management required the LTV to be lower than 50-60 percent" ?

Is it lower risk than flipping, rehabbing, or owning a property leveraged at 65%+ LTV?