From a behavioral point-of-view, I would bring my debt down to a manageable level by aggressively paying it off.

The only thing you can do is be sure the lease(agreement) is clear and in writing.Then if their behavior violates that written agreement(or local laws) then you can refer to that and the offending issues.Inheriting tenants has been a blessing and a curse.

    I have often heard that the people that you surround yourself with can have a major impact on your behavior, thoughts, and actions. 

    I have often heard that the people that you surround yourself with can have a major impact on your behavior, thoughts, and actions. 

You've got someone on the outskirts of socially acceptable behavior, she might have merit for it (hiding from a harassing boyfriend), she might just be anti-social, she might be hiding a meth lab.Regardless, I would want to stand in front of her and talk to her and get a feeling for her situation.

Because their rent is subsidized and possibly completely free, a tenant may feel less invested in the property, which can result in irresponsible and careless behavior that increases wear, tear, and damage.Section 8 properties can therefore be more costly to maintain than private pay properties, which must be built into the monthly rent.#6 Little Recourse for Damages: Once a tenant damages a Section 8 investment property, the landlord has little effective recourse to recoup costs for damages.Ultimately, this raises overall maintenance costs, and landlords must charge higher rent to recoup their costs.#7 Delinquent Tenants: Though the majority of the Section 8 rent is paid by the government, the tenant is usually responsible for paying a portion of the monthly rent.If the tenant doesn’t pay his portion of the rent, the landlord is forced to go through the Section 8 eviction process, settle for less profit, or possible even lose money after all maintenance and repair costs.Sometimes, landlords are reluctant to report a tenant who is late on their rent payments.

The bottom line is that economics are driven by human nature and behavior, which as we all know works the same in any part of the world and in any era, which is why history has that nasty habit of repeating itself over and over.Just last night JP Morgan agreed to buy Bear Stearns (up until Friday the 5th largest investment bank) for $2 a share!!!

This is not "normal" behavior.

I might add that Germany’s answer to hyperinflation was to introduce a new currency secured by real estate.Even the Chinese, who have seen quite a bit of social unrest in the last 15 years, have primarily contained this behavior to protests and demonstrations.

I am confused by the Jekyl and Hyde like behavior and tell him I need to digest what he is saying and that I will call him the next day.