The biggest pitfalls I have seen among many of my peers while growing up in my 20s is that they tend to either get wrapped up in student loan debt, other debt, or lose aspiration in exchange for financial contentment.

Lose the battle, win the war.

I believe this place is legally non-conforming, but for my timeline, I cannot take the risk of losing a month if the inspector disagrees.  

@Abraham BerkowitzI suggest you focus on making money on this deal and not on reducing future hypothetical taxes. 95% of first-time flippers lose money on their first deal once everything is accounted for.

These could lower utility costs over time, and you may qualify for rebates or tax incentives.Add Value to the Property→ Consider adding small improvements or amenities that justify increasing rent without losing tenants.

If there is an environment created that can be construed as a hostile relationship, in most cases you will be the one who loses.

However, if the buyer opts out, the seller loses that credited amount.

There are a lot of great things that come with renting two Section 8 tenants like an annual guarantee of income once you get a negotiated price on a contract with HUD but this does not negate the fact that there is good and bad to everything and whether that be a cash pay tenant or a Section 8 tenant, it's ALL about the way you do business, and whether or not you have experience to be able to recognize the way that certain things should or should not be handled so that you end up benefiting from the situation instead of losing. let's keep this thread going, if anyone else has any other insights please continue to post this is a great thread because there is a lot of general misconception about Section 8 HUD tenants, properties, and investors, it is certainly a niche market so to speak but if you know what you're doing it can be extremely lucrative.

The deal fell apart, and not only did we lose the $5,000 assignment fee, but we also lost the $5,000 we had loaned to the sellers, who admitted they knew about the second loan but never disclosed it to us.When we asked the sellers to return the money, they told us it was already spent on Christmas presents and moving expenses, with no intention of repaying us.This experience was a painful wake-up call.

Paying down principal doesn't reduce your risk of losing the house.