You''ll need more down and additional reserves.

Are the tenants paying market rents?

It's not illegal as far as i'm aware, However it only works because section 8 is so competitive in D.C, I imagine it might be a turn off to potential tenants in less competitive markets

Do you know the markets you threw out really well? 

But it does give an easy way out for busy out of state heirs who don't want to deal with organizing with other heirs to redeem the property, put it on the market and split the proceeds.

It affects the marketability/value of the property. 

or get good tenant for around 1200$ on vacant unit (i reduced rent from 1350 to 1200 as not much interest in current market) and hold few more years absorbing repair costs and contractor issues, trees issues, retention wall issues, tough neighbor issues, loud music, tobacco etc. smell issues, dogs barking issues.7.

Most can provide a rental report to see how much properties are renting for in your area and how long properties are staying on the market. 

On the surface, it might seem cheaper to hire a PM company, but when you factor in vacancies, maintenance, and under-market rents, you’ll likely come out ahead by managing it yourself.I used to work for a local investor with 500+ units, all in one town.

You can arguably make it work in any market.