Section 8 runs back ground checks on all of their tenants and the tenants tend to be on their best behavior as they do not want to get kicked out of the program. 

The important thing for the OP to understand is that this behavior is much more common than not and there is a TON of profit built into the projects of the average residential projects for service companies, because they are by design bidding a ton of projects with the intention of only taking on a small percentage at the highest profit possible.There's also the question here of why you went with an A/E firm from the start? 

My husband doesn’t want to get a duplex because he said he wants privacy ( people have too many bad behaviors )   I am starting with wholesaling since I don’t need much amount of Money or credit and then I can be saving my money to start buying properties and build a portfolio ( what strategies should I pick with wholesaling?

She was fired about 2 weeks ago, mainly for behavioral issues. 

Class C people are usually low income individuals, who may or may not be tidy, and have the behavior of a teenager when it comes to taking care of the apartment.

4) remember what happened in the last crash... wiht listing / sales prices being out of whack, ask what happens if THIS behavior goes away while your holding?

Human behavior always traps us in vicious cycles, where cash is only used as a stepping stone for more leverage.

Does this constitute her breaking the lease early due to her behavior and non compliance of HOA rules? 

I would suggest that you not give in to whatever emotional urges you're feeling, especially the ones suggesting your behavior should stray into legal gray areas.

The most satisfying punishment for what they are doing to you is the crappy life they're going to have to lead, caused by their irresponsibility and bad behavior.