Hey Tony,With a number of benefits, leasing to Section 8 tenants might be a smart move for investors in rental properties.

The rate difference between FHA and Conventional is actually over 1% right now for Multi family propertiesCurrently the rate offered is 6.75% and 193/m in PMI (private mortgage insurance)That makes the payment with taxes and insurance roughly:$3453/monthTaxes were $3820, and insurance is $1800/yrCurrently this building can rent each 2 bed unit for up to $1800/m with tenants paying all utilities.All in cost to close is: $71,414.64If you rent both units for $1800/m you can expect gross cash flow of $147/mThis is the reality of buying a turn key duplex in the area using todays rates and prices.I want to stress, that this is actually considered a great property and deal in todays market for the areaYes, prices are high, and so area rates...My goal is to show what is actually going on.

Leveraging capital from others can be a great move espeically if you are BRRRRing.

Keep it moving.

Im glad they didnt move in.

Now that I've got the process and people in place, I've expanded to other states but it is key to have process and people wherever you invest and whatever strategy you use.

It also is helpful to have a California LLC in case you ever sell that property and move into another state so that you do not need to form a new LLC altogether with new operating agreement, just re-register in the new state as a new foreign LLC.

Some big ones that you guys can talk about before getting lawyers/CPAs involved to see if you are in agreement are things like identifying key decision rights and determine who has those if there is a disagreement (leasing decisions, refinancing, sale, choosing a property manager, scope of capex and renovations, etc) and determining profit/distribution splits.

What did you need from them to be able to move into the "house"? 

I am debating if I should buy a decently priced home in Florida using a mortgage, rent it out as soon as possible, and have a tenant(s) pay down my mortgage until I am ready to move in and have the mortgage either paid down or nearly paid down.