My experience with S8: There is a reasonably strong correlation between S8 tenants and tenants that do not take care of a rental property. 

That means, no conventional loans, bank loans, DSCR loans.  

I like using these for just this case.Another item to consider is since this is a 2nd floor I wouldn't be that worried since the 1st floor will heat the 2nd floor enough to not allow frozen pipes.I would also talk to an HVAC person because I believe they can also put a device to cycle the heat a few times a day or even put a secondary thermostat in the apt to take care of the minimum issues.I feel for you because otherwise you have a great tenant.

Rates can be very similar to those of conventional financing (Fannie/Freddie - full doc loans that you will need to prove income to get), but typically a little higher than conventional financing. 2nd - Networking and partnerships! 

With a DSCR loan, it is perfectly feasible, but they are much different than a Conventional loan. 

I also agree with No. 2, and I've seen some of my STR clients welcomed by their neighbors after taking over a ramshackle place that wasn't cared for.

You have to understand that these people don't care about anything, and the government people are overworked and will not follow up with all the small cases. 

Be careful asking such questions.

I can make the down payments in the smaller market on cash-flowing deals, but these bigger markets require 40-70k to make a deal the conventional way, and I just don't have that to invest.

Marketing, screening, collecting rent, unpaid rent, maintenance, capex, insurance, lawn care, vacancies, turnover costs, inspections, and so much more.