Context matters, and there are steps you can take to protect yourself while still giving applicants a chance to prove their reliability.ALTHOUGH, still stay compliant with all of your states Fair housing laws, Always.

I am currently ending the co-ownership because my dad seriously screwed me over & I have no idea if it'll end with me getting half the fair market value now or waiting until my parents die before I assume it. 

A few things to keep in mind:Section 8 requires the property to pass an inspection based on HUD’s Housing Quality Standards (basically making sure it’s safe and well-maintained).The rent you charge has to align with Fair Market Rents (FMRs) in your area, so it’s good to check what similar properties are renting for.You’ll still be responsible for maintaining the property, but the upside is that a chunk of the rent is guaranteed by the government, which can provide steady income.Check with the local housing authority about any specifics for your area—every jurisdiction does things a little differently.This could be a great niche if you can find a good deal on the land and make sure your expenses (like maintenance, insurance, and occasional vacancies) are covered by the rental income.

Renewals and rent increases- Research market rates; 3% is fair, but adjust if you’re far below market.

If you have mastered RE principles, assessing the value of the collateral is fairly easy. 

Renting and eating the loss is a gamble on future rent increases, but the market and high costs might not make it worth the stress.

I dont believe there is any kind of HOA or ruling organization for these group of houses but it has me concerned that if one day they all decide they want to repave the driveway or add lighting or something along those lines, they would try and make everyone chip in and pay their fair share. 

My area generally has fairly long term renters.

All of my assumptions were based on that 2 unit residential and are fairly accurate between rental rate and ARV. 

If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.6.