One of the two is a HUD home that is in the initial offering phase.

I even asked what would happen if the rents catastrophically dropped 50%, she said they would still supplement the rent if it is below the rent range they initially provided b/c they ultimately want to satisfy their customers. 

Initially applied for financing thru BofA which offered 4.75% on a 30 yr fixed working with a loan officer I had previous experience with.

-To do what you're proposing requires that you have everything set up in advance of the initial purchase - you need contractors lined up for the rehab, an agent lined up to help you get a tenant, yourself or a property manager lined up to manage the property when it's ready, a bank lined up to do the cash-out refinance, etc.

lol Also, what you mentioned is initially was I was hoping to look into Section 8 renting.

My initial thought is that it won’t necessarily increase the home values but could be a great rentals with low vacancy rates?

I maybe able to tell you if there's planned development/community initiatives etc for the surrounding area. 

In many other blogs, especially ones that pertain to the Brrrr strategy, the goal of the purchaser is to find and make the very best deal possible when acquiring the initial property.

Cash flow initially is ideal but it should continue to increase over time.

I think it is prudent to seek your own tax and legal advice for your scenario and worth the money, but if you were to only follow suit initially for what the larger groups / buyers do that may get you off to a better start than most.