Sourcing and acquiring deals these days is a little more complex than several years ago, depending on your connections, resources, etc. 20% equity hold for all of the work you'll be going sounds slim.

Flipping could be good too, but it depends on the market.

The type of tenant the property attracts will depend partly on the location of the property (e.g., Is it in a trendy neighborhood, or a more working-class neighborhood?

Here's my advice: Section 8 isn't inherently good or bad; it depends on your comfort with risks, your experience level, and the specific property.

should be able to build the spaces in 6 months or so depending on weather and how good your underground guys are.

Depending on the location in NY there will be a different tolerance "strictness" when it comes to following the eviction procedure.

@Wenai Ji  I usually pro rate but it depends on what your lease says. 

However though for a STR and depending on the MTR, then you should supply furniture for the tenants rooms. 

I did give verbal qualifications that were: gross income of 3x the rent and a credit score of 580.

@Alex Clark Depending on where you live in CA it will be very hard to find a good deal locally to make much money off of.