$120k Home / $1700 Guaranteed Rent., but Section8. Would you?

[Raj I.]

Hello to all the wonderful members of this community.

My wife and I are brand new to RE and embarking on our first investment home.

Here are the basics. I would truly appreciate your counsel.

• $100k Purchase Price (sorry Subject says 120. Typo) - 2005 Built SFH with no HOA
• Bad part of town, but a 3 year stable tenant paying 1700 through Section 8
• Requires a new HVAC, but the place is not completely trashed. 
• Husband, Wife and their 6 kids at home 

Renter said they have signed a lease until Aug, and intend to re-up. $1700 Monthly rent is awesome, but is this too good to be true? 

We made a visit to the house and they said that he owner is based in Asia and there is no AC/Heat in the house and want a better landlord. They seemed to smoke in the house which is not great, but it is what it is.

How would you approach it? Thank you in advance.