Your dad needs to talk to her case worker as well as give her notice anytime she is short on rent. 

And a 3rd time, I'd take notice.

Is it common to ask for bids before locking in contracts?

A common mistake is assuming that people always behave rationally and make decisions in their best interest.

So, I ended up increasing there rent from 950 to 1100... contract signed, took effect 10/1 .. section 8 already paid a portion of it $1050, she owes remaing $50... anyway.. after they signed the contract a week later they sent me an email giving 60 day notice and are planning on moving out 12/1   ughhh

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Are there specific areas in Texas where you're noticing bigger shifts in prices or market activity?

You have the problem common to a lot of people getting started; wanting to invest but lacking sufficient capital.  

Thanks in advanceVery common strategy - I would say if the LLC is buying it then make sure it is buying it and its separate from you as a person -for example if you are getting a mortgage it must be in the LLC name not yours. 

I would provide notice that ownership has changed and ensure they understand the payment process and expectations.