My feeling on it is if you own the property, do what you want but there are complaints about the smell, there are multiple tents set up + the illegal component of making the wax too.   

While these can sink a score so can foreclosures, short sales, medical debt and a three year old bankruptcy, which in my opinion, don't represent the same risk.Credit score is also only one of three critical components for verifying an applicant's tenancy.

So it seems that the missing components, which lead to the conflict of information, was the income level and RE Professional status. 

Since you are not in the business, it might be better to budget a small loss over a short period if time, rather than several unexpected large lump sum losses.At least that way, there is an out, and a light at the end of the tunnel.If it were me personally, I'd redo the entire house.

The reason I ask is, what if you started non-renewing the Sec 8....granted you lose that "guaranteed rent" (heh, ask me about THAT sometime), but if you can get it up to market rent gradually while reducing expenses, this deal may still work.3) Cash flow & NOI are key components that determine the market value of multi-unit/commercial property. 

We thought we were buying in a lateral market, so that was unexpected. 

You will be able to depreciate less in this situation since land is not depreciable.Cost seg is a huge component to multifamily.

Since things happened unexpectedly and sooner than we planned for, we are trying to figure out what to do with our place here in Imperial Beach.

Hopefully you have something saved up or accessible credit elsewhere for unexpected things that come up.

Profit in real estate comes from cash flow, appreciation, and principal reduction...cash flow is only one component of it.