If you have B-Class properties getting a reasonable, responsible and sophisticated cash paying tenant is a lot easier thus making the cons of section 8 not worth it.

Second month he said his payroll got messed up and he is drawing money from 401k ( yeah right !!!)

I'm going to assume that you are sophisticated in understanding the property location, the growth in that particular neighborhood, particularly for employment as well as companies that are moving in or out of your specific neighborhood. 2nd I'm assuming that you know what the socio economic trends are of the property without that knowledge there's no sense in even doing what everybody above has recommended.

Commercial owners tend to be more sophisticated. 

Depending on the level of sophistication of the seller and the marker you're in, locking the property under contract could risk your earnest money. 

You probably also want to filter out trusts (trusts indicate a more sophisticated investor not a mom and pop) and duplicates you don't want to mail the same person multiple times. 

I suppose this is where this would get tough in the higher end homes with what would be generally a more sophisticated seller .. than a seller on a 100k home that is prevalent. 

This Reverse 1031 Exchange takes much of the risk out of structuring a 1031 Exchange transaction, but is more complicated and expensive to implement.Generally, the larger the transaction the more sophisticated the investors become who also have knowledgeable advisors assisting them through the process.

You pay payroll taxes on your salary, but you only pay income taxes on the rest (not payroll taxes or self-employment taxes). 

According to what I've read, 506 offerings not only need to restrict sales to "sophisticated" non-accredited investors, but they also need to provide information equal to that of a registered [public] securities offering.