owner occupy triplex under contract, need help with section 8

[Keith McKenzie]

For the last year I have been searching for a small multi-family property to purchase so I can owner occupy one of the units...House hack it, as Brandon would say. I have been looking in some specific areas of Duluth, Minnesota, where I currently live and work. One triplex came on the market recently which I now have under contract. 

The question(s) I want pose here today is around the current tenant situation at the triplex and get some feedback on what to look for and how to proceed in due diligence. 

Currently two of the units are vacant in the property. One is gutted and needs about 10k worth of work and the other is nice enough for my daughter and I to move into right away. Pretty much the ideal situation in those two units.

The third unit has a long term (4+ years from what I understand) section 8 tenant paying lower than market rate rent with all utilities paid by the owner. I found out about the tenants section 8 status and current lease (which was just resigned on June 1) when I was touring the property.

So with the current tenant, is there anything I need to watch out for or dig into? To be honest I have a little bit of a negative view of section 8 just from what I have read and heard from others. I understand how it works but I am not sure I would want to owner occupy and be stuck with that for a year. I would assume that I could not renew when the lease is up next year based on income requirements, but I am not sure of the normal terms that go along with section 8.

Well, with all that, I appreciate any and all advice, feedback, questions, etc. Thanks!

[Ken Breeze]

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