We had meetings with him about we our business finances are in the red, not making repairs unless its a non habititable issue or saftey concern.

I was analyzing a four plex and realized there are beautiful apartment complexes being built nearby.

With a Red Lobster at 6.55 rate in 10 years with increases you would be right at an 8 cap.

Unfortunately many lenders will see this as a red flag and may not take the risk to lend you the rest of the money even if you use stated income program or bank statement program but those are for self employed borrowers who have active income from their business but write off to many expenses that when filling their taxes their net income is really low or sometimes negative.

Additionally, the beauty of a 1031 exchange is you do not have to exchange "all or nothing". 

And the rental market is very healthy.We ended up with a beautiful three unit building That’s ten minutes to midtown where the rental income covers our entire PITI allowing us to save our income for a future investment property.I’d encourage you to check it out.

The beauty of this strategy is that it does not require a lot of cash.

Has anyone dealt with section 8 renters before and if so what are some red flags that I should keep an eye out for?

Investors also appreciate lenders who understand the nuances of rental properties and provide fast, reliable service without unnecessary red tape.

The beauty of a single family home is that the asset is a swiss army knife, and there are always buyers and sellers.