Second, I love your observation that they just don't LOOK appealing.

This is where I observe most drafting errors. 

Quote from @Rob Beeman: When I was flipping I noticed that the attraction was broken out in two categories:The woman wanted to see improvements in the kitchen, baths & closetsThe man wanted to see that it had a nice basement, garage & yardThe woman's desires seemed to add greater value than those on the man's list....and the woman's list always took precedence if the budget couldn't handle all of them.That's an interesting observation, and it definitely aligns with what I've seen in the market.

In signing this Lease, Tenant agrees that Tenant has examined the Premises and certifies that it has not observed any pests in the Premises.

Secondly, the more time passed by, and the more I've seen, the more HORROR I observed the program caused to simple people. 

That way you don't risk any of your own capital, but get a chance to learn and observe first hand, so when you're ready to invest, you're way ahead of the game. 

My observation is that the city for the most part looks the other way on on renting all 3 units out.  

Then observe the result.

However, from the perspective of the tenants I know, including friends and family who are Section 8 tenants, I have observed some concerning behavior.

Good observation.