Purchase price: $135,000 Cash invested: $80,000Turned a 2 bedroom 2 bath house into a 7 bedroom, 4 bath house.

Would it be consider as an appreciation market yet or just more like cash flow type of deal (since housing price is still fairly affordable)?

It involves section 8 housing.

Currently house hacking (rent by the room) in my primary home (1st property) in Texas while working out of state.

You could visit the idea of student housing in university area of Charlotte with a SFH and rent by the room. 

If you wait 30 years to start budgeting for a roof, the house will rot into the ground from leaks before you have accumulated enough to replace it.

If the house were minimally livable based on other prices of houses in the neighborhood, excluding the extra land what do you think the house is worth if you had to sell it?

I am new to this but I really need to start investing into my future and single family house for us isn't doing it. 

You have a governmental authority using its power to hinder and regulate private transactions creating some kind of “litmus” test based on god knows whatYou have a seller remaining in a home he sold indefinitely.You have a lender that has twice filed for foreclosure You have a profit sharing arrangement upon resale with the seller/tenantYou’re performing repairs/maintenance on a house while occupied by the seller/tenantAny or all these are lawsuit magnets.If you buy a property, and the seller is a consumer, not an investor, you should NEVER do a profit participation.  

What I mean by that is for instance in a place like Newport Beach California where houses cost millions to buy there may be apartments available for 2000 a month, which is way less than the per square foot of a purchase.