As long as you are not understating any type of income - and I am taking vary broad view here - - and you are not, overall, defrauding the US Treasury.  

Section 8 people are no different than anyone else aside from income levels.

Hi @Michael Behr,In my opinion, the rental income is way too low for this to make sense.

(newbie here) 10% NET income based on cash purchase.

@Robert RixerI'm not one to upvote an argument based on the thinking of Blackstone (I think corporate's amassing of real estate is a real problem for America), but the idea is nonetheless a good one. 

Is my rental income from an Idaho property subject to Idaho state income tax?

How certain are you about your rental income estimate?

with ground up construction you'll usually see 50% of the land providing 100% of the construction . no income no doc and first time investors as well  

@James Robert if you are flipping, even if you hold the property for 1yr, the profit is still taxed as ordinary income. 

Have your income statement both actual and projected, real estate owned, your detailed plan for going forward, have your FICO score, tax returns.