@Rafael Ramos All your goals contradict each other:(1) Cashflow: buy Class C & D properties2) Appreciation: buy Class A & B properties3) Low Crime: buy Class A & B properties4) Why would you want your investments to lose money to lower your taxes?

House hack another property with a low down payment loan and use the remainder or the proceeds to either renovate or purchase another investment property?  

If my target would be low income residents, are there any grants, tax credits, or funds available to help me with the conversion? 

The current price of the house is worth about $900000.

I am an aspiring serial house hacker based in southern New Hampshire actively searching for my second small multifamily deal in the Nashua area, but I've hit a wall with inventory being so tight in my local market.

I'm a house hacker too, message me if you want to connect 

You're feeding 2 dogs with one biscuit by taking care of your living expenses and generating rental income at the same time, and by living in the house and keeping it to 4, you generally get exemptions on things that might bother you to live with (IE you can choose whomever you want as your tenants without running afoul of fair housing laws).

In Italy your second house or even a duplex section the income is taxed higher.  

On average, you will spend 10% of your income on maintenance per year.

House hacking is a great beginning step in investing.