On the plus side the rare times a Section 8 tenant moves the unit is in rent ready condition because it hasn't been ignored as occupied for 6-10 years.

If it holds up under these conditions, you've got a solid investment—better safe than sorry!

Will likely take longer to close than a traditional hard money (they have to order an appraisal, satisfy lender conditions etc..).

You can find duplexes under $180K in C-class neighborhoods, in decent condition, that meet or exceed the 1% rule

I'd likely just agree to break the lease with a couple months of rent as a penalty rather than force these people to continue being tenants in my property....you never know what will happen to the condition of the property.

For this deal to work under those conditions, the purchase price would need to be closer to $179k.With your original assumptions 249k, the deal is marginally acceptable but not great, given the negative cash flow in the early years.

Due to the market conditions I wanted to have a good amount of equity in the building so I only refi'd 50% of the purchase.

I know conventional lending could become an issue depending on the condition of the property.

Managing property can either be a lot of work or fairly hands-off—it largely depends on the property’s condition and how well you screen potential tenants.As for deciding between the two property types, it really comes down to your long-term goals.

It all depends on area and condition.