Christian Cabrera Have you talked with TitleSmart?

Traditional wisdom suggest buying under 1% will make the deal hard to cash flow.  

Sure, but at a lower conversion rate than when they first came in. (6 month old list vs fresh list) Contacting the seller when they are ready is something websites have a huge advantage over traditional "OLD" lists.

A 25-acre solar farm connected to the electrical grid there in 2012, but the biggest contributor to the economy is still the traditional farm, said Haywood County Mayor Franklin Smith, who recalled TVA hovering over the length of I-40 in helicopters in 2004 to find potential megasites.

However, my traditional lender will not allow it to simply be a credit, I have to bring a check and take home a check.  

Hello Christian,My first question is why section 8? 

There is traditional turnkey purchasing with many, many turnkey providers located on BiggerPockets who can help you.

(He pays taxes but receives much more income overall) My question is, upon his death when we will call the note due (I will need a traditional loan on the property) how would this cash paid to his heirs/estate be taxed?

I wanted to open up the world much more, but I am very traditional in thinking. 

The downpayment is practically as low as they get (save a couple of exceptions like VA or USDA loans which have special requirements) and the credit score requirement is lower than most traditional loans.