The downside is you would inherit their very low basis.

The home is in a B class neighborhood, in a good school district, and walking distance to parks.

Like you said, your maintenance should be very low on BTR.

I’m also open to exploring short-term rentals, private lending, or passive investing in funds—anything that maximizes returns while keeping risk and time commitments manageable.For context, I’d consider leaving my job if this could become a full-time venture that surpasses my current compensation (low-mid six figures).

The median home price is also very low nationwide which creates a low barrier to entry.

Very low turnover. 

Rentals are extremely difficult to make pencil right now but would only personally consider higher end projects because the costs are far easier to absorb than trying to build in lower value neighborhoods.

The problem is: A traditionally financed low-down payment house-hack with traditional long-term rents simply won't cash flow during occupancy, or after, in many MCOL-HCOL markets in the US. 95% leverage at even 5.7% just won't work in a lot of cases right now.

My clients who invest in Section 8 housing do so in 'not quite' transitioned communities but that have low crime rates.

What they will offer you is an appliance package, or closing cost help, or a low fixed rate loan.