yes, on paper it makes sense to run by the room because you can technically maximize your rental income but you have to consider the following things:- who has control of the thermostat?

He will be totally hands off and only role is to provide money.My goal is cash flow and another investment(same as my father).I have limited free cash on a tight budget but have access to a heloc loan for expenses if needed.

So, you may not have have the ability to increase rents because Section 8 limits how much you can charge, which may not keep up with inflation.Not everyone has Section 8 issues as my clients had, but you will more likely to have more problems than with non-Section 8 tenants.Multi-Family vs.

I am worried about having an intermediary taking control of my property and renting to tenants I haven't screened.

Definitely an option in PA, FL you may be limited to 75%.

But the one thing that you can control is your creativity and how far are you willing to go with risk . 

While cash flow can be limited within the downtown area, there are still excellent opportunities for cash-flowing rentals in surrounding regions.

I come across people with limited credit history and/or no score.

They could have owned the home for many years and if homesteaded, are limited to up to a 3% increase each year.

I have equity on it and yearly i get around $10000 as rental income but the property is 1989 build and i am assuming that since its very old property the equity gain would be limited.