My question is:  Would HUD properties fit into our investment strategy?  

You don't have to trade out of a single family rental into another single family rental -- there are other 1031-eligible investments that might fit by providing passive monthly income. 

Let's connect and discuss how Columbus can be the right fit for your investment goals!  

Period...No “one size fits all” rules here!

And when look at all things on Straw-buyer, it fit's that mold perfectly EXCEPT it's on conveyance and not origination.

Unlike traditional real estate notes is something that is easy to do from afar since you do not get access to the interior anyways so there is nothing you can physically inspect.You are correct that you will get $500-$600 a month in payments but also recognize its taxed at ordinary rates... 

The wet signed physical piece of paper is the actual collateral for this deal. 

.- buyer was NACA 0% down, and they will occupy 1st floor unit, got lucky as they fit well into neighborhood and love the house.

Just hit up the YouTube to check out a demonstration and see if it’s a good fit for you or not.

So you may not be covered for a month's rent - don't count that chicken yet.4) Assuming you can hold them responsible for rent, you should still get the property turned as quickly as possible to avoid the vacancy loss.5) Determine the loss in physical damages, vacancy, etc. and send them a bill.