@Grace Chee The process for this is time sensitive, you should have gotten a TRIM notice around late August, early September.

And given their recent late payment history, I don’t know that they’d qualify with another lender. 

@John Zhang as far as I know there is no limit to how much w-2 income you can offset if you qualify for REPS.

Also, the term "house hacking" is generally used for your owner occupied home (renting out rooms in your primary home) and that income cannot be used to help you qualify (it is considered boarder income). 

Montgomery Metropolitan Housing has a reputation of being difficult to work with and are slow to pay at times r so I have heard.One thing to keep in mind is that even with section 8, you still get to set your criteria that tenants need to qualify for your unit. 

These properties can provide cash flow and diversification while qualifying for favorable residential loans.

If you are looking at FHA because of credit score, then I would work on credit scores to qualify for conventional financing or see if you can get a very strong coborrower with high scores.  

You can always consider doing a cost seg study on a property that you buy and that can also help with tax benefits if you cannot qualify for the real estate professional status.

And you'll have a solid W-2 income to help you qualify for loans. 

Because they know you'll probably never make a claim, or your claim won't qualify.