**The house is far from me.In my eyes putting up with the hassle and getting paid in the long run is better than having to flip the property over to a new tenant.

Or do we even need an LLC for one door? 

I run a Real Estate call center and do this every day.

Since it won't be cash flow in this condition and may run into loss it may offset my rental income but hoping to build equity and have another investment in my portfolio.What would you folks suggest?

If before occupancy repairs amount to more than $20k, I could run into trouble.

Once that is completed, then run the credit for those that meet the first round of criteria.You can double check but I have not heard you have to prioritize a Section 8 tenant, you just can't reject them because of source of income.

You run this risk.

Currently have no doors and want to practice some underwriting.

I suspect you are aware of San Diego’s appreciation being great but suspect you have not actually run numbers to determine how much it can impact your wealth.  

If not, it should have been part of your due diligence to request a loss run report.In any case, if the building is good and your property inspection report is good, and the price is right, just close the deal.