Those typically seeking $30-$50k are for down payments or second position liens. 2.

And while a 1031 exchange isn’t an option, some people explore alternatives like installment sales to spread out taxes or even tweaking the investment structure so your returns are treated as interest instead of equity.There are definitely some creative strategies out there. 

How are unsophisticated mom & pop lenders in 2nd and 3rd position on those properties going to get their investment back?

These are the options we are trying to decide between… thank you in advance!

What are other options do we have if we don't have piror experience? 

If you move, renting in NYC and buying an out-of-state property could work, but make sure you have a solid plan for managing it.If you stay, buying in an affordable market and living there for a while could be a good option.

You have many options here.1) Terminate the lease: It clearly states that they must have renter's insurance and the lapse can result in a default2)Have them cover the damages with sufficient evidence that they caused it3) Claim it on your insurance for the property, likely they won't give a good payout unless a fire, flood, or some sort of wind damage.

Eddie I'm in a similar position as you with the same questions. 

@Polat Caglayan The majority of investors who become involved in the section 8 program do so because they purchase lousy real estate and leasing the units to section 8 tenants is the best option on the table.

Another option is to put an electronic deadbolt on the front door with a non-locking door knob.