Or most recently, when we bought into a 26-unit southside Chicago property that had false rent statements, squatters, and on-the-corner drug dealing happening. 

Here's what it says about that"Section 504 applies to housing that receives Federal funds.

To exclude capital gains under the Section 121 exclusion, you must have lived in the property as your primary residence for 2 of the last 5 years.

Right now I have the land partitioned into 3 section. 

Plus, if you're interested in stable, long-term tenants, many investors in these areas, including myself, have had success with Section 8 rentals.

Class D   Bars on every corner  , houses with bars on windows  , cars on blocks and stripped ,  drug dealers on the corner , drug addicts  sleeping on the sidewalk , tents on the sidewalk , gunshots , ladies of the evening ( and day ) , abandoned  houses  , graphity on buildings .   

Section 8?

I was looking to add a new section on current owners management agreements and new agreements regarding an additional charge.

I specialize in renting to Section 8 (BRHP) in nicer areas of Baltimore County and noticing significantly deteriorated tenant quality.

Depreciation recapture cannot be avoided, and Section 121 exclusion will have to be prorated.