Hi Julia - I'm a tax lien and deed investor in the Austin area and frequently attend the Bexar, Williamson, and Travis County auctions. 

This happens so frequently that changed my lender page description's first line to read, "SERIOUS INQUIRIES ONLY."

I have invested in or funded (equity & debt) thousands of units in dozens of states with or on behalf of a variety of domestic and non-U.S. private equity funds, family offices, and institutional investors, and also co-founded / operated several businesses.

Lower end tenants mean more headache:More frequent turn overHeavier turn costs/higher wear and tearSlow paymentsLonger vacancy between both the turn over time and finding another qualified tenantBeyond these factors, as others noted, a full unit renovation will cost about 15-20k if you want to do it pretty nice.  

Wherever you invest, I recommend hiring a property manager who is highly knowledgeable about Section 8 and its frequently changing guidelines.Putting down at least 20% ensures the best rates and avoids any PMI payments.Good luck!

@Luke Bricca Yesss...my heart is really in renovating and giving houses a new life (did that with my own house pretty much) but alas I live in the Bay Area so there is nothing I can afford here....or anywhere nearby really... plus a small kid (so travel is hard), so hard to travel frequently and supervise a contractor, etc. 

Frequently the price is higher than a consumer would get if they contracted directly with a contractor.  

I post on here frequently.

Working with a Broker who represents a wide variety of lenders will allow your Broker to find a lending partner that fits your situation.

Vrbo says they also give preference to listings that are updated frequently.