Also, the fees plus being a forced buyer with a deadline on a 1031 exchange may negate the small tax savings.

I love section 8 but it comes with positives and negatives just like any other strategy.

And the other reason I wont accept small dollars or investors is you lose any personal interaction when you have 100s of investors and I like the personal aspect of this. 

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Just remember: most negative reviews are written by problematic tenants.

Just remember: most negative reviews are written by problematic tenants.

For example a 25 y o applicant who has used credit minimally and has an unpaid bill of $50 in collections from when they switched phone carriers may have a low score, but the only negative on their credit is this one SMALL $50 debt.

The only problem with selling while occupied is that I have a huge negative cash flow.

And considering I think a person who puts in plain black and white that integrity and character of the operator are key -- and then does something underhanded and incompetent is just mind-boggling to consider -- so I'm only left with a negative feeling about the documents these darned attorneys dream up! 

- FYI: it's only illegal to try to rent it out, the property owner can usually legally live in a nonconforming basement unit.If you do all this you may still negatively cashflow each month, so make sure your income can cover and/or your cash reserves.If you do this successfully, you will learn more in 1-2 years than you would reading here on BP for 5+ years:)Good luck:)