When you start to get into $1.6+ million, that's where non-recourse, institutional financing comes into play which sweetens the pot considerably compared to the traditional 20-year, floating rate commercial loan on a $1.5 million property.Another thought: 25 units sounds like a lot, but it's not enough to hire out full time management and maintenance. 

You may also want to contact lending institutions in your area (or the area where you want to purchase your home) for additional financing options."

She is a Section 8 participant is only supposed to have 3 people living there.

I would love to be participate and meet other like-minded individuals. 

Download the instructions for SchE and you can read some more.If your modified AGI is <$100k, you can take $25k of your rental losses that year also if have “materially participated” in your rental activities.

However, I think it’s still easily profitable with that amount of interest and I’m going into it with the understanding that I will need refinancing to a more institutional loan within 12-24 months.

No incentive to participate in the American Dream. 

That's your long term plan to be bankable at a traditional bank.2) Connect with private lenders and lending "institutions".

You may wish to confirm that the new 401k provider will handle the ongoing compliance support such as any required 5500 filing (e.g. 5500-EZ for a one-participant plan with assets in excess of $250,000), any required tax reporting (e.g. 1099-r in the event of a distribution or in-plan Roth conversion), mandatory plan updates and amendments, etc.4.

That your kids are at home more often now, and that you need to participate more in their education.