Fast solutions have slow problems.This definitely includes any risk-on investment.

I’m intrigued by the idea of providing affordable housing while generating steady rental income, but I’m still in the research phase and have a few questions:Is investing in Section 8 housing a good idea?

I can pretty much guarantee you that you wouldn't want to have anything to with them if only you knew.If you want to avoid these risks, there is a solution and I'll illustrate it with my own situation.

I think it is the best of the bunch.In the end there are no great solutions in this category.  

I have worked with many experienced investors from Southern California, Las Vegas, Phoenix, Tucson, Denver, and other large metro areas in the southwest and west coast, with seasoned investors that still live in all of those great cities but have shifted most of their real estate investments out of those higher cost or higher risk markets into ours. 1) Compared to most cities in the SW and West, home prices in the Albuquerque metro are relatively affordable.

I believe that any losses you have in the stock market could offset rental income.On the other hand, the better solution is to not have any net rental income. 

If FNMA, FNMA allows transfer of deed to LLC if mortgage originated after June 1, 2016 and original borrower owns a majority interest in the LLC and any 12 months of owner-occupancy is first met:https://servicing-guide.fanniemae.com/THE-SERVICING-GUIDE/Part-D-Providing-Solutions-to-a-Borrower/Subpart-D1-Assisting-the-Borrower-with-Property-Related/Chapter-D1-4-Transfers-of-Ownership/Section-D1-4-1-Information-Relating-to-Transfers-of-Owner/D1-4-1-02-Allowable-Exemptions-Due-to-the-Type-of-Transfer/1041300841/D1-4-1-02-Allowable-Exemptions-Due-to-the-Type-of-Transfer-09-09-2020.htm

There's a 50% chance your relationship won't last, so be prepared in case that happens.If you can both work remotely, I recommend moving to a more affordable market.

This is simply predatory in nature full stop.I have sold many of my OREO props on low down ZERO percent financing but they were at market prices and the buyers owned them free and clear in 24 to 36 months that works.. but long term contracts on these homes is not a solution for neighborhood revitalization just the opposite.

@Leo R.All my tenants come from Zillow, apartments.com, and affordable housing.com.