As for LLCs you may open one and protect yourself,  it you always have house insurance and in my leases my tenant gives up the opportunity of insurance and has the option to get renters insurance.

I live in PA and there are prety strict sellers disclosure laws . protected for upto 2 years 

Asset Protection through LLCs: Some lawyers I've consulted mentioned a package that includes both probate avoidance and asset protection.

These carve-outs are typical in commercial real estate loans, including those backed by Freddie Mac, and are designed to protect the lender without necessarily compromising the loan's non-recourse status under IRA rules. 

It's really hard to say with the specifics you have but definitely keep yourself protected.

You know you need to address it and you've already stated that your lease protects you from this type of issue- quiet enjoyment and damage to your property. 

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

So if you are just trying to protect your principal, probably not a bad place to buy. 

Consulting with local housing authorities, a real estate professional, or a Loan Officer (such as myself) experienced in Section 8 housing can provide valuable insights and guidance tailored to your specific situation, helping you navigate the program effectively while protecting your financial interests as a landlord.Let me know if you would like to discuss further or if you have any more questions I might be able to answer.

Putting into LLC is recommended by attorney and for liability protection purposes.