I want to give them a chance to provide a fair resolution and improve the work before I terminate the contract & fire them.  

I’m fairly new to the self-managing/property management business and certainly new to dealing with section 8 tenants.I have a potential section 8 tenant who has inquired about one of my properties and they are in their opinion “disgusted” with the way the carpet looks however up until this point in my efforts of marketing the property I have not had one complaint concerning the carpet.That being said she has requested to rip out the carpet, in turn to replace the carpet with hardwood floors. 

I feel a bit stuck in this scenario, and I could use some advice.I'm raising some money from private investors and wanted to run some options by more experienced posters, because I'm a bit unclear as to what the best way is to structure my deals with private investors, or if there are better options that I'm not considering.Here are some rough numbers to capture a deal that is on my radar:Loan amount from investor: $110kYearly Interest Paid to Investor: 7%Monthly Rent from Property: $1300Monthly Interest-Only Payment to Investor: $642Monthly Property Taxes: $71Monthly Insurance Payment: $71Property Management fees: $104Net Cashflow: $412Now, this is not a bad outcome, and I am fine with it, but I am wondering what someone else might do differently if you were in my position - Should I charge an upfront fee to my investor (maybe $5k or so for this deal and also keep the cashflow as my monthly management fee), or would you instead use the $110k from the investor to BRRRR a bunch of deals, or would you try to just use the capital for one deal at a time?

Here is the link to the HUD booklet for the fair housing guidelines.

If offered, it's usually because they're asking for above market value, the property condition is poor and no one will buy it, or it's got a bunch of tenant problems. 

Quote from @Jay Hinrichs: the guru has a bunch of students who pay the money .. 

Is this a fair assumption?  

What if a property is slightly rundown and would need to have some renovations done before it could rent out for fair market value, would a DSCR loan still work for that? 

And a property manager is expensive and profit margins on rentals are fairly small.

I would also charge a lot more than I would for a residential rental.Honestly, I wouldn't recommend it unless you've really studied it and understand how to protect yourself and earn fair compensation.