The Tampa Bay area is more than likely not your market with those buying criteria.You will have to put meaningful sweat equity and be creative in your leasing (MTR, rent by room etc) to produce a 3bd SFH  <200K purchase price that cash flows. 

It is a 2/1 Duplex where I will live in one side and rent out the other.

I am specifically looking to rent out to section 8.

Pre Payment penalties are standard of 3-5 years, and can usually be eliminated completely for an increase in the interest rate of 1.5-2%+/-.

And you need local knowledge to find the professionals and get a sense of market rents and values.Any Florida agents out there that can help @Bob Asad?

It might be more useful to set your sights on the reality of today and tomorrow and end of the month.Things such as learning to collect the rent, learn to place good renters in the property, etc...

It lessens our overall control substantially and thereby increases our liability for the project(s).

I would aim for a multiplex, it will help with the mortgage payment as you can live in one of them and rent the others out.

Generally we build 3/1, 1500 sqft and rents for about 1500-1700 per side, so even if we are into or finance it at 300k it still yields 1% and there isn't any other way I know to get that 1% on 300k.

The real question is how much are you going to save on rent and how long are you willing to live in a house that is “uninhabitable”.