As noted earlier, most evictions are rinse and repeat, and even if you need to find local attorneys to sign off on paperwork, it's likely less expensive if the paperwork is prepped ahead of time.Just a thought.

I have Section 8 rentals in my portfolio but I do recommend connecting with a property manager who specializes in Section 8 rentals - they'll know all the specific requirements, inspections, and paperwork needed. 

If so, do you have any paperwork that supports the vesting to be able to show a potential lender? 

Running into more paperwork issues.

Yes, they can be slow with the first payment, but as long as the HUD paperwork is complete (essentially a promissory note here), the money always comes.

However, there was a lot of additional paperwork, and I had the capital...So I just opted for the more traditional path instead.  

Yes COGO does have paperwork but once you have done your first deal with them it gets easier and they actually show you the scale of points and rates.  

Moving to one of them involves some paperwork & hassle.

Secondly, the homeowner would need to cooperate as she would need to submit a bunch of paperwork including income statements, tax returns, etc. for the Short Sale application to show that she is insolvent.  

The draw back to these loans is that they are more paperwork heavy than the other "portfolio" types of loans....but if you have ever received a loan on your primary home, it's likely that you will go through the same type of paperwork here with conventional lending.