My question is: will the section 8 authority turn down a lease altogether if they think the rent is to high? 

Read books from Bigger Pockets authors, podcasts, independent research, talking to other investors, and pounding the pavement.

I think the author was kinda over exaggerating to make a point to us ordinary folks that compounding makes us 'rich' but the real wealthy people did not become real wealthy via stock market but by founding their companies. 

@Jacqueline Lee I'll 1 up what @Evan Polaski mentioned....Each jurisdiction and city is going to be slightly different, but at the surface there is generally slightly more paperwork to get your property approved and into the system, but once you get it up and running and the first tenant in there, its generally straight forward to get the rent increases etc.A good place to start would be your local housing authority, they may even offer "Landlord" classes to understand the system more.  

I know most of us have heard horror stories and/or have personal experience about criminals and unsavory characters taking over vacant properties then claiming squatters rights to avert the authorities.

Let them file what they will, and if there is an investigation at all, (doubtful IMHO) the authorities will request whatever information that's needed.  

I know most of us have heard horror stories and/or have personal experience about criminals and unsavory characters taking over vacant properties then claiming squatters rights to avert the authorities. 

@Angie Hensley, until you do something additional the LLC has no authority to sign a lease to rent out the property.

You should have a Board meeting with minutes authorizing the bank account opening.

Work with a professional 3rd party PM who already manages dozens or hundreds of S8 units and is on a 1st name basis with the local case works/housing authority folks.