I believe they are I've done some research and from what i remember seeing on the reports, they missed 2 payments and just currently paid this past week 

However, if they are still considered a short-term guest under lodging rules, you may have more flexibility, though the specifics can depend on local regulations in Seattle.Since this can become a legal gray area, I recommend documenting all agreements, payments, and communication with the guest.

.: Quote from @Travis Biziorek: Hey Amit,Section 8 is definitely appealing to a lot of out-of-state investors because of the perceived stability of government-backed rental payments.

Using leverage to scale, such as borrowing against this cash for larger down payments?

While I know this throws off my calculations a bit they are still directionally correct.Here are the numbers for my first property:Cash To Purchase - $53,250.25Mortgage Payments - $43,980.00Expenses - $16,738.02Total Cash Invested - $113,968.27Total Cashflow - $22,041.81Appreciation - $81,800.00Debt Paydown - $10,143.12Estimated Tax Deductions - $45,163.55Total Returns - $159,148.48Total Return % = 139.64%I have owned the property for 42 months so my annual returns have been 39.90%. 

This may take the form of a second deed of trust if the funds are being used as a down payment on an investment property with a conventional loan.

But then I am still stuck with the monthly payment of $180 a month. 

That also needs to be insured and has a monthly lease payment.

It’s a lower risk strategy since you’ll be living in one of the units, and you’ll qualify for low down payment loans.

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.