You need an experienced attorney who deals with tax deeds to get you title insurance and a marketable deed. 

If you are using their money for a down payment, are you really planning on renting it to them in a traditional sense or simply having them pay for the mortgage, insurance, taxes, etc (ie you won't be renting it at market value more you are buying the home for them and they are making all of the payments and repairs?

Foolishly, we initiated the application process with them before looking up the reviews and will already have to pay a cancellation fee if we do decide to back out. 

Should we buy and market for S8 tenant or without ?

You will most likely pay more than market rate so take that into account.You will then have to get it all furnished which can cost a pretty penny.

For my first property, the appraisal came in $25,000 lower than expected, which initially concerned me.

Initially, we planned on house-hacking a multifamily property.

However, availability remains tight, with a record-low vacancy rate of 4.5%.Retail move-ins reached 86.3 million square feet, while move-outs balanced the market at 86 million square feet.

And how does one even market the space if you do not even own it yet? 

I’ve been keeping an eye on the short-term rental market here in Indianapolis, and it’s definitely heating up!