The ROI is attractive at 16%, but ensure ARV aligns with recent comps given market trends. 

I’m in the San Diego area and my husband and I are adding 2 additional rental units to our property. 

There are cheaper one’s in D/F areas but I would be careful as those can create a laundry list of additional issues.

Connect with the case worker for that tenant ensure you get a courtesy copy of notices they receive from S8 so you're in the loop about recertification dates, etc.Confirm the information above w/ your State S8 office but I can't imagine they won't allow you to charge late fees. 

Additionally, you may wish to speak with a CPA as to whether or not becoming an S Corp is the right decision – they can assist with reducing self-employment taxes.

Creating a catalogue of info and answers for the general benefit of those in the future in addition to the poster.

If you need additional verification, you can kindly request a government-issued ID, but it’s best to communicate this upfront in your house rules.Happy to connect and share more insights! 

In addition, the PM is running a business and insurance (GL and WC) costs money. 

Although he is a banker, he thinks having the ability to operate as a broker and place loans with 30+ other lenders, in addition to his bank, is the "best setup."

If you feel ambitious, you could try a BRRR strategy adding additional equity to the subject home and then taking equity out of it to pay off either the HELOC or if you decided to the refinance the primary residence.