Only at that point can an underwriter recognize it as an income producing property. that's for some lender ; for other lender they can use appraisal opinion.to reduce dti from primary you could also attach lease agreement and proof of income.

We have placed tenant buyers in the property on lease options so we get a little higher rents and the tenant buyers take care of the property repairs.

You're also trying to raise another $100k to rehab the property to get it leased up. 

It is required the Property Manager return all personal property belonging to the Owner such as keys, entry codes, copies of lease agreements with existing tenants, tenant deposits, and any other files or information necessary to manage the property and the tenant(s)."

say you find a solid property in a low cost market for $200K and you buy it.between down payment, closing costs, rent ready / spruce up costs, and lease-up costs, you're probably going to need at least 50-65K in cash. 

I don't know your area, so I can only write to my experiences in PA.You don't really convert your property to Section 8 (S8), but rather sign a lease with a tenant who happens to be funded by S8.

I also broker ALR's in Colorado, and create deals in which I connect operators with landlords looking to lease option the properties.PM me so we can connect!

Quote from @Sumi Devi: One of my clients is buying commercial real estate property with tenants that have 5 year lease.

Quote from @Hanna Brown: @Jay Hinrichs  You mentioned Oregon and WA made foreclosure rescue lease backs totally illegal.

Think of yourself of an asset manager, not a maintenance provider or lease-up specialist (but do those well too).3.