Noise and smells, hours of operation, and access issues are very common, and many commercial tenants have conflicting needs with residential.

In 15-30 years, this will all be noise, and properties values and rents will have increased.In the meantime, buckle up.

Up/down units can be terrible for noise.

If you're concerned about issues, make sure to have a camera pointed at the driveway, smartlock that logs all the comings and goings, noise monitor inside and you can even place one in the backyard, and lastly get damage rental insurance on each booking that the guest pays for by baking the charge into the nightly rate.

An extra $100k or $200k is kind of in the noise at this stage for us. 

The nice thing is you have the housing authority to back you up when they don’t pay their portion or there are issues with noise or messiness.

I contacted the local PD, no police reports have been filed only phone calls placed from my property about concerns at other nearby address...dog barking, noise complaint, the latest was assist person.

They consider it fraud and will take action against those who dare to rattle their cage.That being said, IF they approve the tenant and rent you are asking, and the total rent falls within their guidelines and tenant income qualifications, disclosed on the lease you are good to go.BTW, in year #2 of the lease, you can ask for a rent increase, and don't be shy about a raise--at that point, all they can say is "no".

Guest takes more care of the property, since you,  the host, are the only judge to decide if you retain or not the deposit in case of damage or issues.Another Good: You can write in your contract that non respect of rules may lead to lose some of the deposit: Like noise, or a very unclean check out, etc...

Avoid properties on main streets (traffic noise, avoid homes near freeways (smog/traffic noise), avoid homes without garages if most other homes have garages, avoid being in airport flight paths, avoid over building or over rehabbing for the area comps, know how to properly and accurately estimate ARv and rehab costs, and have money lined up in advance.