A Solo 401(k) is not a WalMart discount special.  

USAA gives examples -- "pay off transition expenses, consolidate high-interest credit card debt or buy a reliable, economical car."

I do have fairly good credit, and plenty of sweat equity.

I suggest not to mess up your own credit and get evicted or unable to lease later.

. - Mortgage credit inquiries are not a concern, nor do they have a "hard" impact on your credit.

The key here is hiring a property manager that specializes in Section 8.

We have about 40-50K to invest from our HELOC, Line of Credit and 401K.

How I do it is through selective screening and I have been 100% successful.By instituting certain screening standards it will naturally eliminate the vast majority of non target applicants.For example young couples with children will generally have lower credit scores. 

The realtor suggested that since we were local, we would qualify for special financing.

The criteria when I applied and received mine was some of the same factors as though I was applying for a regular mortgage, DTI, credit score/report, W2, paychecks etc.