Another option is to pay the loan on a 15 year term.

This might be because their credit score is too low or the house needs fixing.Although each lender can make their own rules about how to qualify a borrower and their investment, like needing a certain credit score; I believe that flexibility is the best thing about hard money loans since it provides each individual with vast amount of options.  

Alternatively, if something were to arise in our life (emergency or otherwise) while this money was tied up in an investment, we're left with few good options. 2) Time is not something I have much of.

I'm exploring alternative financing options and would greatly appreciate insights or experiences in similar scenarios.Key Points:Property Location: Cahokia HeightsPurchase Price: $17,000Rental Income: Approximately $1,500/month via Section 8Condition of Property: Updated plumbing, roof is in good shape, needs AC unit, paint, flooring and cabinets and counter topI'm considering reaching out to private lenders but would like to gather opinions on:Feasibility of securing a mortgage for a low-cost property.Attractiveness of this deal to private lenders.Any creative financing strategies that could be applicable here.Legal and tax implications I should be aware of.Potential risks and how to mitigate them effectively.Any advice, suggestions, or contacts in the private lending space would be immensely helpful.

@Aaron Dixon Welcome to the bay area.Lot's of options and differing areas all within an hour radius.House hacking would be a great way to enter the market here.I'd suggest deciding how far (long) you are willing to commute and narrow your buying / living range accordingly. 

If you have the option to do it for 200 bucks, I'd say that's a good deal. 

I would like to know the best approach to let the tenant know about the repairs with the option to modify the lease for a smaller unit, I don't want to come across as a shady landlord, because I like the guaranteed check from section 8 and the tenant.

Honest tradesmen will be honest and lay our options for you.

It can be a powerful tool for an investor.

We had a subpanel installed which is an option but would have upgraded service if we needed more AMPs.