So I want to be a landlord???I am stuck on which way to go.

[Chris Da]

Brief history of myself..I have been a mechanic for the last 16 years..I use to love to fix cars, but now it is time to move on, as I se the writing on the walls, and it is just getting worse in the dealerships..
About 2 years ago I sat down with one of my best friends fathers. He owns a real estate agency, and mainly deals with commercial and land subdivisions ect.. To give you an idea of how big this guy is, 2 years ago he built a retirement community of 154 house, and it was a cash deal, as the bank tried to alter the terms of a loan once the parcel was approved.
Anyway, this fellow has done wonders for himself, and took a liking to me. The first statement out of his mouth is "RENTALS IS WHERE IT IS AT." At one time he had a complex, but now like I said he is older and owns a few shopping centers and strip malls..(Still rental income, just on a larger scale..
Well, I took his advice and bought a place at a sherrif sale maybe 2 months later..This is a nice townhouse, which only breaks even, but the community is VERY nice..I didn't steal the house, but got it about 25k under value..I have been lucky, as I have a SECTION 8 lady in it since it was purchased and she keeps it in PERFECT condition. She never wants to move, because this is not your typical section 8 house, and she can now live with the "RICH" people..So that worked out well so far.
2 months ago I purchaced another house via a REO..I got a good deal on it..Payed 80k and the house across the street sold last week for 128.
Here is where it gets interresting..I helped a lady who is 36 w/7 kids move from not so nice an area, to this house, which is a fairly nice area. She really liked the house, and she brought her mother along on the interview ect..I thought I was doing a nice deed by renting to her.(Plus I wanted the $1300 a month income from Section 8) My mortage with taxes and insurance is $797...
Well, she has been there 10 days now, and there is trash all over the yard, bags and boxes on the deck outside. She lives like a total pig. And I am okay that some people chose to live like animals, but I am concerned about the neighbors..Like I said this is a nice little area..Down to earth blue collar working class area, and most of the people keep thier houses pretty clean, now here I come the block buster with the 36 year old white trash tenant and her kids.
What I am getting at is that I live Section 8, as I am pretty sure I am getting payed 90% of my money. I am in this for the money, like most people here I think. What I am now considering is dropping my standards a bit on the houses I buy..
I know that 8 blocks away, where the area isn't so hot, a friend of mine is unloading a bunch of places, because he needs to free up cash to purchase a 34 unit. He offered my a place that he just bought last month. He payed 40k for it, did some work and has a Section 8 tenant ready to move in June 1st. He told me he would sell it to me for 60-65, and be creative so I don't have to put cash out...It will work out to be more positive than my last place, but am I making the right move in leaning towards being a slum lord?? That really seem to be where the cash is..I mean he made a comment to me."Look you bought the place 8 blocks away for 80k and put 10% down and all that, I will help you get into this for little or no money, and it pays the same rent." He has a great point, but I also feel that the property he has will really never be worth much, as that section of town seems to be the worst. I am concered about long term..Should I be?? Either way as of now I can get the place below market value...But how much I am not sure.