I've read (all my knowledge is theoretical) that tenants on government assistance can be really rough on properties (I also see that as painting with a broad brush) but the government assistance side of that is pretty stable income, and it doesn't seem terribly difficult to raise rent either, just requires 60-days notice instead of 30. 

Then financing for the horizontal ( toughest in my mind to get)Lastly vertical construction funding.and if this all lines up TIME  most places its 1 year to 5 years to get a project approved and ready for vertical.

How much would you try to negotiate down on the house if closed all cash?

This is a great place to learn and to connect with people so take advantage of all the great resources.Welcome aboard and best of luck investing!

I thought the 1% rule properties were all gone—but not in Toledo.

For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions.

This is especially true when you are a single meber LLC.That said I own all my properties and do all my business through multiple LLCs.

Partner #1 funds 100% guarantees loans and handles all the bookkeeping.   

So, when you consider all of that, you may find yourself with a smaller cash flow.  

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.