I would be careful of the folks on here that strictly invest in section 8 as there are a lot of pitfalls when working with government entities and low income tenants.

Unless you do a 1031 exchange you’ll owe about 15% of the gain and 25% of the depreciation to the federal government.

It just seems like there will be many that fail to file their report and I just can't see the government really going after tiny businesses for so much money for something that is so easy to forget to do.

When someone pays me for an LLC, they are mainly paying for creating the operating agreement that governs the operations of the LLC.

When you talk about average Joe getting a mortgage, that risk usually shifts right away to the federal government, which is not the case with commercial loans.

Demolition and Property Safety:If a home doesn't meet safety standards after a tornado, the process for demolition typically falls under local government jurisdiction.

If you invite the government into your business, you get the good and the bad.2) In my experience,(and I may get some hate mail for this) the average section 8 resident is harder on the property. 

The most cost effective and safe investment you can make to cover your 50K debt and still use the same 20K capital to increase the value of your holdings is invest in short term fx government treasury swaps.

My friend suggested for me to try owner financing then to rent it out or turn it into government assistance housing.

This is because Mortgage backed securities are in direct competition with investors looking for "safer" investments backed by the full faith of the United States Government.