I would use a property manager to manage them as I only have experience with traditional rental properties.I would love opinions from investors who actually use the Section 8 program and those who do not.What is your opinion on which one is better long term and brings in more cash flow now.I appreciate any information.

Those major cities that you mentioned are fantastic options and have TONS of potential tenants/students, but their barrier of entry is much higher than traditional "college towns" like Lubbock or College Station.

Due to more favorable loan terms (and a bit of impatience/ignorance on my part) we went the traditional financing route for the property, with my wife and I both being on the loan. 

We have a buyer looking to do traditional financing for each individual home as a single family residence. 

For a cash-out refinance on a vacant lot, finding traditional lenders can be a bit tricky as most focus on developed properties.

I'm wondering if others have gone this route and what their experience has been with doing things this way vs traditional booking sites? 

Given your presumed lack of real estate experience, OPM (other than 'traditional' bank financing) is likely off the table for now. 

My mortgage is less than $1000 and I get $1500 in rent, when realistically I could get $1600+.If you can manage to put 5% down and get a traditional loan, your PMI and fees will be less than going the FHA route which will reduce your costs.I don't have a ton of properties, but this is what my experience has been.  

Downtown str's have done well and it's convenient to the front gate of NAS Pensacola but you could also consider near the beaches of Perdido Key since that is convenient to the back gate and it's a more traditional tourist destination. 

This is a firm that traditionally builds singlefamily homes.