At least in some states the deficiency judgement attaches to any properties they buy in the future. 

If he gets a judgement against him for any reason, a lien could and most likely would be attached to 'your' property.There is also legacy risk. 

That said, there is a clause in your HAP agreement that says if there is any criminal activity attached to the house you have the right to terminate the lease.  

This house comes with a buildable lot attached (needs to be separated) that is worth 145k.

The unit will be a rental eventually, so I would like to reduce liability.A picture of the demolished fireplace is attached.

House hacking may still be an option depending on where you live, it just won't be as lucrative  there are many cities around the country where a single family home will have a granny flat in the form of an attached room with a separate entrance, a casita in the backyard or even a basement apartment. 

Numbers are close, I will do more investigation as to see why it is on the market for 85k and they are saying the ARV is 105k but no repairs are needed. something is up. don't get to attached to a property. best of luck.

It's a 3 bedroom, 1 bath house with an attached 2 car garage.

There are plenty out there and you'll find what you want be patient and don't get emotionally attached if you can help it.

Below I am attaching a few pictures of the property and the area, and a link to one of my Aibnb properties that is located in the same building.