Then going the conventional route for an FHA 203k sounds good but I need to qualify for that first.

First you buy, rehab and then qualify for Sec 8 housing.

I do own my own home so I don't believe I qualify for owner occupied. 

It really depends on the product you're interested in, the immediate market it is in, and your financial means.I'll give you an example: I have a client who had limited financial means (smaller down payment, and was qualified for a low mortgage amount).

Feel free to pm me if you have any other questions about qualifying for a rehab loan.Thanks,Raj Mulchandani CPA

with the rates being where they are now (high 2s to mid 3s) if you are able to qualify for conventional financing then that would be your route.  

@Chris Clothier  Well Chris I think I am qualified to speak to the 09  refinance model.As I lost about 2 million plus in that time frame and ended up owning over 200 homes from those that could not refi my loans out  LOL.. even in your fair city.

I am a home health physical therapist and I drive around rural ala alabama all day and know small cities very well that most would not. 

Once acquired, I would fix them up, sell them on terms to a qualified buyer, originate a Note that I would then take and sell it to a Passive Investor (or really anyone looking to get a better return on their money.)My gross profit for 2015 was over 243k!

Do they qualify based on income to rent ratios?