However, purchasing a new construction home might be the ideal next move for investors seeking long-term equity, minimal maintenance, and strong rental appeal.Investor Benefits of New Construction:-Customization: Tailor finishes and layouts to meet tenant demand and maximize ROI.

Also with all the incentives for renting to low income and section 8 tenants would the benefits outweigh the risk of getting a bad tenant? 

Quote from @Moises Bonilla: What are the benefits of being a person with a lot of equity Equity is wealth. 

Many listings are adjusting their asking price at least once while on the market.

That way, you get the benefit of the full $250K of equity.

The big benefit is you’re close enough to keep an eye on things and handle problems fast if needed.

The city benefits from stable employment sectors like healthcare and education.Challenges include older housing stock needing repairs, slower economic growth, and stricter local codes, so due diligence is key.

The other 2 being still being able to take advantage of tax benefits by materially participating, and having an option with lower impact on cashflow. 

I'm trying to find the benefits, if any, for rehabbers but don't seem to be having much luck. 

From a tax standpoint, rental income and deductions (depreciation, repairs, etc.) still pass through to your personal tax return if the LLC is treated as a disregarded entity or partnership.Insurance Adjustments: Once the entire home becomes a rental, you'll need a landlord insurance policy, which usually costs more than homeowner’s insurance.