Quote from @Zack Aboona: This has happened to me more than once.Your policy should be that nobody occupies the rental unless they are screened, approved, and added to the lease.

I think you need to be specific about what you use in your screening criteria.

While a property may have had a Section 8 tenant residing in it at one time, the process starts all over with every new tenant.Screening a prospective Section 8 tenant should be handled exactly the same as when you screen a non-Section 8 tenant. 

As long as they have gone through your screening process the same way and you feel comfortable, you should be fine in either case.

hey there are definitely options out there for upto 80% financing cashout DSCR no income no doc if the rent is covering the mortgage . what is the loan amount ? 

This property would not pass my first screening (rent >= PITIH at full leverage).

You'll pay top of the market price and with the current mortgage rates, it's unlikely your payment will be covered by rent.

This is a house-hacking strategy that many individuals are utilizing to cover their mortgages right now.

I agree with Michelle on the assumption that individually they both meet your screening criteria. 

I will add to make sure you have blackout window coverings for the night shifters.