The failure rate of new investors in this business is huge - unfortunately.It is inevitable that your credit score will be part of the risk analysis in your borrowing efforts, but you should minimize this as much as possible.Getting into serious personal debt for any business is not a good idea IMO.

Your net positive rental income is taxable income, regardless of what you do with it.You do have options to minimize the tax on the income your cashflow generates.

Conventional I paid 5% down then a minimal fee.

I am not an lawyer (and I do not play one on TV ;-)) but I went looking on masslegalhelp.org and found this nugget on Federal public housing:Federal public housingIf you are applying for federal public housing, a housing authority  must deny your application if it finds that:A household member is currently engaged in illegal use of a drug, or the  Housing Authority has reasonable cause to believe a household member's illegal  use of a drug or pattern of illegal use of a drug may threaten the health,  safety, or right to peaceful enjoyment of the premises by other residents.1 The Housing Authority has reasonable cause to believe that a household  member's abuse or pattern of abuse of alcohol may threaten the health, safety,  or right to peaceful enjoyment of the premises by other residents.2   Importantbefore denying a person housing based on illegal drug use or alcohol  abuse, a housing authority may consider evidence of rehabilitation3.Any member of your household is subject to a lifetime registration  requirement under a state sex offender registration program.4 Any household member has been convicted of the manufacture or production of  methamphetamine in federally assisted housing.5 Any household member has been evicted from federally assisted housing for  drug-related criminal activity within the past three  years.6   ImportantA housing authority can also let your household in if the person who  engaged in the drug-related criminal activity has  successfully completed a supervised, approved rehabilitation program, or if the  circumstances leading to the eviction no longer exist—for example, the household  member has died or is in jail.7 In addition to the automatic denials listed above, a housing authority  may deny applicants "whose habits and practices reasonably may  be expected to have a detrimental effect on the residents or the project  environment."8 This means that a housing  authority has wide discretion over whom it allows  into its federal public housing programs.

(not really bummed about that, but does minimize exit strategies) Should i pass on this one because of the title insurance time frame, or just look at it as long-term rental?

When you're ready to exit your investment and sell the SFH, having a quality unit will go a long way to minimizing any costs associated with getting it ready to sell.

Obviously having minimal risk is another benefit.

With carefully selected properties by a local partner and properly rehabbed, the risk is minimized significantly.

You may find an investor who will want the property for a rental unit if the rent rate meets minimal cap rate criteria.

Other private sellers, brokers and agents work with me because I cut through the bull.Michael you want a low price accepted, probably minimal earnest money which means nothing, and not use a HML but a transactional funder to flip the back to back close.