Do not rely on it for legal advice.

In the last 18 months various states have instituted new rules, regulations or laws related to (1) need for licensure to wholesale (2) restrictions on marketing of a property in which you do not have ownership and (3) disclosure requirements when dealing with a homeowner that makes it clear to the homeowner that the contact signed with the wholesaler is not a definitive “sales” contract, therefore making it less likely home owners will sign4.

Just to add to what has been said here - if the seller described this as a triplex on the sale documents, they might have a legal liability.  

There are some legal considerations as well as practical considerations 1.  

I am definitely jotting notes down.

Don't have answers, but definitely following this thread!

Section 8 would tend to carry higher repair and as a result, additional vacancy.OP’s definition of cash flow is rent minus piti.  

Do not rely on it for legal advice.

Then definitely get a quality PM and rent it out for a bit.

You and your legal, tax and financial advisors should review this transaction in greater detail, especially the PLRs, to ensure you understand the significant risks involved and are structuring the transaction as close as possible to the PLRs to mitigate some of the risks.