You need to be careful about where you're buying and what your expectations are.

Be careful when you select entity types.A pass-through entity in the United States, such as an LLC, may not hold the same characteristics in Canada.What market are you looking to invest in?

I got an unsual response to a listing of mine today:Good morning, We are home health care agency, and we want to rent the house to care for disabled or elderly clients that are unable to care for themselves 4 -6 unrelated people.

I would be careful how you go about this one.

As a long-time GC, I wouldn't care how you paid me.

So, in your considerations, I would park right there for a bit and determine how this would look for you.Since you have about 2.5 years to think about it before you would need to spring into action to take advantage of the rollover for tax advantages, maybe you try on a rental and see how it fits. 

If someone is willing to live in and renovate the 2 of last 5 year capital gains exclusion is a significant consideration.

Here are a few to watch out for:Property Condition: Most distressed properties need extensive repairs or renovations, which add to your initial investment.Competitive Market: With Phoenix's popularity among investors, competition for the best deals can be intense.Complex Deals: Foreclosures, auctions, or short sales are much more complicated compared to regular real estate transactions and usually require specialized knowledge.Tips to Successfully Navigate the MarketDo Your Research: Understand the local market conditions, including neighborhood trends, property values, and potential rental income.Build a Strong Network: Work with professionals who specialize in distressed properties-such as brokers, contractors, and legal experts-to make the best decisions.Assess Costs Carefully: Factor in the cost of repairs, holding costs, and any potential financing issues when evaluating a property’s profitability.Be Patient: Finding the right distressed property takes time.

I would be a little careful with Section 8 unless you have experience with it. 

Whoever qualifies for that probably won't need them.Yes many GPs have experienced hardship but you can see those who really care about what they are doing and those who don't.