We saw some small crack in the walls of a house we are interested in, but regular home inspection doesn't call out any red flags.

Red flags all over the place.

Here is the condo:http://www.zillow.com/homedetails/1761-Red-Jacket-Dr-Antioch-TN-37013/108741488_zpid/Rent comps for 2 bedrooms in the complex are anywhere from 1200-1300, but I couldn't find any rental comps for a 3 bed.

You'd want to know if the line is sagging in certain spots due to erosion of the concrete, any offsets in the line, cracks, root intrusion.

Hopefully one day you'll be big enough to actually NEED that service, and if you didn't plan for it at the beginning then whatever profit was left is either at zero or in the red.  

Are there any red flags when dealing with section 8 tenants?

All of this nonsense about the 1% paying their "fair share" is red meat fodder for votes, but defies what the actual statistics say.  

I dropped out of dental school (when I realized I wasn't making money fast enough) after being accepted with a 4.0 gpa in undergrad... many of the courses which I have taken are firmly rooted in chemistry...

There are many many more hoops to jump through, and paperwork needing to be filed, and custodian fees (and fees and fees) not to mention having to deal with "non-recourse loan" lenders AND the complications of the taxes...I came to the conclusion that unless you can buy the property outright in the IRA it just wasn't worth the hassles, red tape, paperwork etc etc etc.Plus, RE has many great tax advantages that you would be giving up when buying in a tax advantages account.If I had $150-200k in the account, that would make things different.

Similar to Justin, I have heard that there is a ton of red tape to work through.However, many people don't even try.