I would imagine this phenomena would amplify in areas whose economy relies strongly on agriculture.In any case, my concern about using Section-8 as a hedge during a recession is how much funding the Housing Authorities issuing the vouchers have and the likelihood of cuts to those budgets.

I purchased a 4-unit building gut rehab in Chicago, with a 203k loan.The contract had an “as is” addendum.My contractor applied for building permits with the City of Chicago building department.They were advised that the property has multiple injunctions against it, and was, in fact, in demolition court.This obstructed receipt of my permits, rehabbing my property, moving into it and receiving rents, as was my plan.Neither the seller, nor his real estate agent disclosed this information to me.If they had, I would not have purchased the building.The signed contract states under “General Provisions” Section “H” Code Violations:“Seller warrants that no notice from any city, village, or other governmental authority of a dwelling code violation that currently exists on the Property has been issued and received by Seller or Seller’s agent (“Code Violation Notice”) If a Code Violation Notice is received after the Acceptance Date an or before Closing, Seller shall promptly notify Buyer of the Notice.The Seller and his Agent both knew about these violations as the list of violations clearly correlates with his ownership of the building, but did not disclose this information to me.The “as is” addendum does not exempt the seller or his agent from notifying me of this material fact.This withholding of vital information violates the terms of our contract.Had I known this, I would not have purchased this building.The seller and his agent were both aware of this.Are there any legal remedies for me? 

My finance guy pre-authorized $600 for the appraisal, I felt that was on the high end.

Plus, thinking through Demand, we're beginning to see a lot of retailers (like the Colorado based Sports Authority) default - PacSun, American Apparel, Aeropostale... what this says about the larger economy, I don't know. 

I live in Northern CA with my husband, we've paid off our mortgage, and we recently saved up a decent down payment for another property.I work for the State government by day, and am an author by night.

So if I engage in a lease option and the owner doesn't pay his taxes or even his mortgage do I the lessee have any protection on my option or can the lender just foreclose or the tax authority put a lien on the property.

However, these properties often carry their own set of difficulties, including deferred maintenance, tenancy issues, vacancy, lack of appreciation due to neighborhood, or Section 8 troubles with the local housing authority, so you should be ok with a higher risk investment if you look in these areas.

If what you meant was, "With proper third party authorization from the actual borrower giving you the authority to make contact with the lender directly, you might be able to get in contact with an actual decision maker that could possibly be reasoned with if you present a fully executed purchase and sale agreement, proof that escrow/title are already opened up, proof of funds sufficient to cover all of the fees/costs and to cover the principle balance in full and, a 24 hour close?

You'll need a signed borrower's 3rd party authorization form, containing the loan number and borrower's social security number(s).

If you have a low risk tolerance or don't want to deal with housing authorities and tenancy issues, jumping into those investments can be a nightmare.Since you mentioned someday starting a business, ask yourself if the day-to-day grind of managing properties - from buying, to rehabbing, marketing, tenant selection, rent collection, maintenance, or selling - appeals to you or if you simply like the idea of having multiple types of cash flow (lump sum in a flip as well as long term monthly rental income).