If it is a gated community, it also adds a layer of security for your tenants.

You need to get an attorney involved ASAP.Look for someone through the Mass Bar Association who has a track record in defending these kinds of cases. https://www.massbar.org/public/lawyer-referral-ser...My understanding is the same as yours - if a property is not inspected and approved by the local housing administration (the local authority that administers Section 8), then Section 8 renters are not able to rent there.It's just a guess, but if your PM said something like "we don't rent to section 8", that could be the basis of the complaint. 

Next and this is the strange part, I was locked out of my account and put on a security hold.

Andrew,From your post it seems that you are the property owner and you are leasing the property to a company that provides Assisted Living facilities to the Public.  

She has two dogs, and you knew there would be wear and tear, and you can deduct that from their security deposit. 

Been poking around at creative financing as I don’t want to spend three years saving the equity for a down payment to secure a loan I can afford (credit isn’t an issue as I have a 720+ credit score).

Especially to find and secure property that will cash flow at the 2% rule or $200 per door as suggested on this site.  

So I am stuck with being limited to just any publicly traded stock, reit, bond, mutual funds, ETFs.I could just buy Berkshire Hathaway stock or something which is likely to hold up and perform well over the long term.

Of course many lawyers would tell you otherwise.Of course, one possible advantage (if this is important to you) is that an LLC provides a layer of obfuscation if for some reason you are looking to make it harder for someone to find out you are a landlord through public records. 

If they are old and near retirement, talk about a steady income to supplement social security/pension plan/401k.