Since I’m not sure about the size and other major factors, take this advice with a grain of salt.Good luck with your decision! 

Is it worth removing this tenant and having it sit vacant while you find a new tenant.If your intention was not to keep this tenant then I would have had the owner deliver it vacant, unless you think this tenant can afford a higher amount (which probably cannot but I assume you have info on this tenant to make that decision)

I don't know what your situation is but I just go laid off so I can't used traditional financing that uses my personal income in the decision. jh

We’re looking for any advice, personal experiences, or tips that could help us navigate these decisions.

It's not unusual to see 3/1 and 4/1 Section 8 properties but that single bathroom would not do well as an MTR.Overall, I'd say location and the shape of the property is going to be your key driver and the factors that will make or break you in the MTR space so very carefully evaluate both before you make your decision. 

Use them as guides in decision making not hard and fat rules.

@Karolina Powell, if you are going to make investment decisions based on someone saying a small market property is worth a 6-8 cap rate, do I have some things you will want to see...Everyone should have a general rule of thumb, and Austin may be correct, or he may be way off.Mixed use can be hard to value in any area unless there are other trades.  

If your goal is financial freedom, choosing the right location is the most important investment decision you will make because it affects all long-term income aspects, including:Whether rents keep pace with inflation is crucial.

Of course, at the same time, I can make a more informed decision on if this market is one to consider. 

As the impacts of climate change become increasingly evident, more individuals are likely to incorporate considerations of air quality and other disaster risks into their choices when selecting a place to live. Rising...