Here's why:  Even if the contract maintained insurance, I doubt the carrier would pick up coverage.

If you don't want to get your lenders in trouble, pick up a copy of Lend to Live in the BP bookstore for both of you to educate yourself on how to do it the proper way so that it's a true business transaction and not cutting corners just because you know each other personally. 

My understanding is that they typically call up and go to the section 8 office directly to get a good relationship with those working there, who can then cherry pick the best section 8 renters for them.

As investors we don't pick guarantees, we assign probabilities, allocate on conviction and then manage downside risk where possible. 

We have an opportunity to pick up a lot and are wondering if it's cheaper to just buy a duplex/4plex that is already built and fix it up instead of building one from scratch with the current  construction costs being so high. 

@Angie Guifarro I bought investment properties first and now house hack a duplex I picked up along the way.

Pick a driving radius.

Pick a primary exit strategy that you like. 

Try picking on the low hanging fruit first, "Pre-foreclosures" you already know they are in trouble.)Would also “drive for dollars” by biking and running but only in my local neighborhood here in Northeast LA.

All this time and energy spent vs picking up the phone, calling tenant and saying "Oh hey, curious where all this is coming from, kinda caught me by surprise".