I can bring the 12.5% downpayment; that isn't a big concern. 

Give serious consideration to hiring a PMC as you don't seem to be cut out to self-manage.

Marks on the wooden fence.I have boarded the window and had a flood remediation come out (cut out carpets, removed broken glass and baseboard, put in a fan and dehumidifier).

The team did a quick turn, cost cutting repairs designed to hide several expensive flaws (e.g., spray paint over wood with visible mold, partially covering rotted wood with plywood, etc).

This will get you past your risk concerns. 

Not to be facetious, but if the rental income only supports a $625k value, why not just pay the extra 10% and buy one of these properties to cut out the rehab risks and time to complete?

Hey Bernard,Most are going to be fine, but I would certainly be up front as some are still a little timid about Sec 8.There was a stretch earlier in the year when Trump was putting some pressure on HUD and there was concern about section 8 spending and lenders were getting skiddish.

Don't be afraid to cut ties with those who consistently waste your time, but also consider investing a little time in educating those who seem motivated but inexperienced. 

Your property is still a going concern as far as you know it.

Yes, it’s always better to catch something when it’s small rather than after it’s done damage.I hear you on the concerns about out-of-state investing.