Deal Gone Bad? Your thoughts???

[Ben Startz]

I'm a newbie in the investing game, and I have been working on an owner finance deal for an 8-plex (1BR/1BA units). Zoning is good, tenant history is good, condition of property is good, and numbers are really good (34% cap rate / 100% occupancy). Perhaps the numbers are in fact too good?

In doing my homework, I found that two of the tenants are on the sexual offender list (they have lived in the complex for 9/10 years). I'm very concerned about future resale issues, general liabilities, tenant complaints, etc.

Anyone care to share their experience in renting with similar circumstances?