The credit bureaus (TransUnion, Experian, and Equifax) sell the fact that there has been a mortgage related credit pull to bottom feeder boiler house type lending operations.

Lease clearly stated no illegal business and I'm pretty sure he won't be able to pay rent without the additional cashflow he had coming in.Tenant actually put the house address on a website for rub & tugs (rubmaps.ch)- that we are trying to get removed. 

I recommend focusing on getting a great investment property and disregarding Section 8 in that pursuit because any property can be a Section 8 property, but a lousy investment is lousy regardless of having a Section 8 tenant or not.Section 8 will perform a basic functional and safety inspection for your units after you have an agreement with a Section 8 tenant and your local housing authority.

When we bought our house a couple of years ago, I never had the thought of renting it out rather than selling it.

There are things that you will see or like in your house that don't matter to your tenants.  

Are you looking to get a loan for your 11 unit multi family house where no tax return is required?

I only see one person giving you the correct advice.Your focus should be on paying off the debt, controlling your finances, and building your credit.

Thanks for the input Denis, this is what I would personally do as well!

Even with a DSCR loan where the property is held in an LLC, the mortgage is still in your personal name. 

It really depends on what goals you are trying to accomplish and the type of housing you are looking.My partner and I have our own construction companies that we work together and we've been helping clients to renovate to either flip or rentals.