Interesting Off-Market Reverse Mortgage Section 8 situation

[Jordan B.]

Looking for some opinions on an off market deal I have been working on the past 7+ months. 

I was knocking on some doors in a neighborhood i have property in and came across an older lady that was living with her very old mother who passed away recently. The mother had a reverse mortgage on the house and the daughter was living with her. I don't know a lot about reverse mortgages but from what i understand once her mother passed, she had a period of time to make arrangements but she applied for extensions which i assume got approved. However, all the time has run out and she contacted me out of the blue a couple weeks ago and said they were in process of foreclosing and wanted to sell me the house. 

Here are some quick numbers:

Reverse mortgage balance: $122,000

Agreed sale price: $150,000

Monthly Rent $1650

Pennsylvania Housing Assistance Voucher is currently paying $1,780 a month for a 3 bedroom in this city. 

Heres the kicker, she wants to stay in the house and rent it under "Section 8". She is not yet approved for the Pennsylvania Housing Voucher program with HUD/PHA but hopes to be before the end of the first year. Once that is approved, that voucher program and rent would come into effect. She can't afford the house on her own but the first year is going to be paid up front in full after settlement with the proceeds from the sale (150K-122K).

I am rolling the dice here since she can't afford the to rent the property. However, if she gets approved for the housing voucher program that is $1780 from the government guaranteed each month. I will also not have to do any renovations etc as I would normally after purchasing a property. But if she doesn't pay after the first year, ill have to evict her. I am not sure how hard that would be to do and i would lose the monthly rent at that point. 

Whats everyones thoughts? How can i best cover myself here? What are my major risks?