The tenant said they have been on section 8 for 14 years and they’re worried that if I keep talking to their section 8 worker about late payments that they could lose their section 8.

2 seems best if she is open to losing a  bit of privacy but its a step in the Real estate journey:)

If you're losing $1k/ month by holding it, it costs $2k in repairs and will take 3 months to fix. is $5k an amount you can easily get on cashflow or equity added?

Then getting legal requires Liability Insurance, Bond, Workers Comp , Etc.If you do all this, you will probably lose money the first few years while you learn the ropes....but after that you can expect to make about 20% for Overhead And Profit .

That lawsuit would cost more than the building, if you lose, and if you win you will still be out a lot of money; and way more stress than the batteries.

They aren't just buying to buy and lose money.

I'm not a huge fan of paying cash since you lose liquidity. 

Hi Kenny-Great question about whether you should put a house you plan to live in and rent out parts to others in an LLC.Certainly putting it in an LLC would help with asset protection and limiting personal liability.However, you may lose the ability to claim the part of the house you live in as homesteaded tax rather than the higher non-homestead investment property tax for the entire property in an LLC.

And it could cost many, many thousands of dollars in legal to eventually win or lose.

I doubt switching to a different property at 5% down will leave cash flow negative as well but you’ll lose closing costs on both ends from your equity.Selling before 5 years is typically a net negative unless you are flipping.