Prohibited Transactions: Avoid transactions with "disqualified persons" (yourself, family, etc.).Alternatively, consider leveraging a HELOC (Home Equity Line of Credit) to access capital for investments.

Montgomery Metropolitan Housing has a reputation of being difficult to work with and are slow to pay at times r so I have heard.One thing to keep in mind is that even with section 8, you still get to set your criteria that tenants need to qualify for your unit. 

However, a lot of concerns can be mitigated with looking at their past rental behavior in a lot of different settings.

Quote from @Red Smith: Sheriff Sales are conducted by counties, so each county will have its own individual rule set for how the auction is conducted.

The seller and their agent hopefully did a good job communicating with that tenant to set expectations.

This is a good tenant of 5+ years, and I don’t want to cause unnecessary friction (I’m just trying to set up automatic systems for myself).

Grind it out for 5-10 years like this and you’ll be set for life.

I would have set aside much more if i knew what a pain that would be.

For me, what was talked about above is nowhere near close enough for me to judge or provide an opinion on someone as just because someone changes their name (we have done it several times for different entities) or someone could be co-gp or LP in a deal but not in the limelight) does not immediately set off my radar of "omg this person is not legit or a scam artist". 

Ideas for some of the paragraphs: - Future Setting: where you live, what you see from your front porch or backyard, what your kitchen/gym look like. - Family: Kids?