Are you unable to get a conventional loan yourself or would the property not qualify?

It seems like all it is is, I qualify for a cash-out refinance, I put that amount towards a down payment on another duplex or 4-plex, and I would then be making 2 mortgage payments instead of 1 currently.

Just remember, you'll be looking to finance 75-80% of the ARV in order to qualify for most loans and you'll want that amount to be equal or greater than the 63K you've put into it to make the BRRR strategy work.

When I've been ask if I accept/take section 8, I simply reply, "the facility has not been qualified for section 8", which is a true statement.I do have a Certificate of Occupancy from the City, so yes it has been inspected, but just  not by the Housing Authority. 

But if a couple like that comes along, and they qualify, then great.

I mention this as it sounds like you are minimizing your value add to this project.Given the build and hold nature, I would recommend finding a qualified GC and give him the contract.  

On a high level, it seems really attractive as I can get a loan with 3% downpayment and no PMI or use the LPMI program where the lender pays the MI (I know I qualify for the loan).

Does anyone have suggestions or know someone who works in the Central Texas Waco/ Baylor market that is willing to partner on my qualified leads?

He may have applied for an exemption because he is disabled which does qualify him for a tax break. 

Wholly owned subsidiaries only offer qualified asset protection.