At best I would would go with section 8 that guaranteed most of your rent and sometimes 100% of rent.

It sounds like to me that one party made the loan and another party provided a guarantee for the loan. 

I believe they guarantee it, as well.

If the tenant moved the furniture into the garage then they still need to guarantee the condition of the furniture. 

While a Quit Claim Deed can convey interest in the property there's no guarantee of marketable title with them, express or implied.

You are guaranteeing them a part of the "value"  at the time of the future sale of your house.

There are different ploys used to try and hide such transactions, none of them guarantee it can't be discovered in an audit and mortgages are audited at different times by lenders and/or servicers. 

Worse yet if you have a personal guarantee on it you can't dump it and shed it off without some collateral damage.The key is too always be looking for deals.

Of course, somebody who is on the list could move in close by afterward, so there is no guarantee unless you buy close to a school (they are restricted from living too close to schools).

They are both 100% correct.Second, there are many that will disagree, and that's fine, but I guarantee that you can't make money flipping if you do your own rehab.