You go out and buy an apartment house and then hire a property manager so you don't have to personally spend time on the property.

In your case of a fourplex, option 2 should get you a better deal.I would also agree with Bill on how the number of units may not correlate with the value of the property unless it is a large multifamily complex, and sometimes a fourplex or several single family houses would give you better returns. 100% We always recommend conventional first until you can no longer qualify for those. 

Are you looking to do more rehab projects like this (either house hack or not)?

Id rather see you house hack a property.

why on gods green earth would you want to buy 10k condemed houses :)  seems like a waste of time and money to me.

In fact, in many states, the seller cannot commingle the tenant's security deposits with other funds and the tenants must be told which financial institution their security deposits are held.Finally, because the tenants are section 8, the local housing authority may also be helpful in resolving this with the seller.To Your Success!

Quote from @Charles Evans: I'm a new house hacker here.

I've house hacked twice in Reno, NV and it's changed my life.

I just bought a 2300sq house at auction for 71k.

Lower land and building costs mean higher returns on investment, and there’s a quiet but consistent need for quality housing as remote work and cost-of-living shifts draw people away from cities.