As a borrower, I utilize my private lenders whom I pay between 8-12% to quickly purchase properties that are distressed or low in value.

Why pay the extra?

Detailed Due DiligenceConduct in-depth due diligence, including background checks, reference calls, and site visits to assess the sponsor's operational capabilities.

This is because the Schedule E is obtained independently, and few people would inflate their rental income in that form (and pay more taxes than they should).  

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

I have enough in savings to pay for it but I keep asking myself should i just sell it and get it off my plate and lose the low interest rate or bite the bullet and do a big rehab and continue renting it out.

Pay them back.

The more good real estate debt that you can get into that is tied to good rents that pay it down the better.

Hey Carl, I have a few S8 tenants in Detroit, but most of my tenants are "cash paying".I'd start by searching the forums here for "section 8" related threads.

I put 20% of pay into 401k and have a couple payments totaling around $1000.