The tricky one is the rent to income ratio and how it is related to the median family income.I did note that at lease one other poster was advised to always use the low barrier screening criteria to avoid potential lawsuits. 

If you have to use Comps from different neighborhoods to obtain your desired value, don't be surprised if the Appraiser uses the similar recent sales and active listings on the Subject's street and obtains a lower valuation.I highly advise you pursue the professional, competent approach rather than the "suck up" approach when working with Appraisers.

In order to make sure you're optimizing your tax advantages and adhering to all applicable requirements, even while I can offer broad advise, I suggest speaking with a tax professional or accountant who is knowledgeable with real estate taxation.

His team is advising him to sell.

Whether or not it'll actually happen, who knows...but I always advise people that it's a possibility. 

Hi Mike,I'm coming late to this discussion but I came across your post and wanted to hear your advise and how things have developed since the original post.

He said a realtor has advised him to sell it for $500k so he wants exactly that as well as $80k down at a 6% interest rate.

I would advise to be a little more precise in what you are looking for in terms of approaching someone for a partnership. 

Hey everyone, I am curious if anyone has experience with section 8 properties and can advise me on how to get into the space and do things right. 

@Joseph WeisenbloomAny monetary consideration at all?