As mentioned before, NOI is very healthy and would justify a long term hold if needed, but resale within 2 years would be the end game on this deal so long as market conditions are still favorable. 

Depending on your strategy, you can sometimes forgo high cashflow in favor of appreciation.

What I am looking for here is one where I can pull out more than I put in (because I was able to make a great buy or get a favorable appraisal).  

I'm actually on the path to house-hacking in which I'll probably rent out 3 or 4 rooms in a similar fashion.

If you have to "hope" and pray the market is favorable when it's time to refi, should tell you everything.

At the same time you are looking for financing you can either try to refi and take money out to buy another, find an owner finance deal with favorable terms or look at a subject property.

One of the issues I’ve seen with traditional section 8 programs is they seem to favor the Tenant and they can tell the owner you need to fix this or else they will put you in abatement.

Finally, look for states that have favorable landlord/tenant statutes.

More than a few times, this has still allowed us to close a deal favorable to us based on solid due diligence.   

You Could refinance that loan into a 15 year mortgage, or if interest rates become more favorable, you could change that aspect of the loan from a 3.5 to say a 3.0.