Investment Info:Small multi-family (2-4 units) buy & hold investment.

All 500 of my deals (more then 2k of my colleagues) and many many of the props I own are all from PRE 1940.Heck my 7 unit I think was built in 1910, I get about 20% NET on that. .The 81 unit I believe that was about 1935.

@Tracy ScottScour the HOA docs for wording involving occupancy such as, "not more than three (3) persons not related by blood or marriage living and cooking together as a single housekeeping unit."

The situation we are faced with now is whether or not we should take a chance and renovate one of the units bathroom and kitchen prior to selling in hopes of making a return on the money put in for the renovations.

What do you consider a small apartment building 4 units or 20 units?  

If you rent, start with buying a small MF and rent out the other units. 

What made us stop is when we had a Section 8 resident that did some damage in their unit. 

But, could I minimize risk of renter defaulting on payments for the 2nd property by turning this property into a section 8 housing unit with guaranteed income from the gov't?

It wouldn't change your loan amount because lenders are conservative.You could explore 2-4 unit properties because lenders will count 75% of the actual or potential rents (whichever is lower).

., in-unit washer and dryer or shared laundry room)]Appliances: [Specify the appliances included (e.g., refrigerator, stove, dishwasher, microwave)]Utilities: [Indicate whether utilities are included or not]Pet-Friendly: [Specify whether pets are allowed or not]Outdoor Space: [Describe any outdoor amenities like a backyard, patio, or garden]Additional Features: [Mention any additional features like hardwood floors, fireplace, or walk-in closets]Property Highlights:Spacious and well-lit interior with [describe any notable architectural details or design elements]Open concept living and dining area, ideal for entertaining guestsFully equipped kitchen with modern appliances and ample cabinet spaceRelaxing master suite with a private bathroom and [mention any unique features][Add any other notable highlights or selling points of the property]Location and Neighborhood:Situated in the heart of [City, State], our home is conveniently located near [mention nearby amenities such as schools, parks, shopping centers, and public transportation options].