The value adds and the market appreciation profits pale the cash flow (this is even with a duplex that cash flows over $5K/month).

You cannot use "short term rental income" to qualify on the subject property BUT you can use 75% of the appraiser's rent valuation on the 1007 market rent schedule.

Or you could promise a certain interest rate then lower the rate by a percentage or two at closing.What can be done in todays market to underpromise and overdeliver?

In other words, the expense saving was rather certain but our chances of recovery on the PG seemed slim.We completed the deed in lieu over the summer and began marketing the properties immediately.

Would really like any insights you all may have on the potential (if you have worked in them) in these markets and if you feel there is opportunity in all 4 stages of our strategy in that city. 

You will gain so much knowledge from the experts in your market and also may find someone who is in the same boat of you.

I'm particularly passionate about cultivating an extremely tenant-satisfaction-focused mission in order to distinguish myself in the rental market. 

Would sec 8 decrease the rent to the calculated fair market value of rent or at worst case scenario remain the same and sec 8 decline the increase?

How will you market the property?

You can invest in any market selecting the ones that you believe are seeing the most growth, and do it from anywhere.