Thomas S. has it right, this guy will probably do it anyway so be very firm and maybe get him to initial the portion of your lease that states no commercial activity (I hope it's in there)

I still review the credit because I am concerned with non-medical and non-student loan related collections, as well as, liens or judgments... anything that suggests a willingness to take things all the way to court.Also small collections might show a lack of concern to handle even small bills property, which S8 tenants often pay a very small portion of their rent.

I’ve decided to do nothing but educate myself in areas I feel will play a vital role in my long term development which is how I stumbled upon this forum.

That sounds like it could be a good cautionary post if you wouldn't mind writing it up and posting pictures of the carnage.On the rent payment, I suspect it would depend on if there was proper notice from the tenants of the move-out, and since they did carry over possession into the following term it may just be a wash in terms of the Section 8 portion, as others have said.

While not typical on every deal, there are transactions where the Buy Full Sell Short strategy can be used to retain future or tail-end payments.This technique is based on your purchase of the full payment stream from the note holder/seller with the resale of a shorter payment stream or partial to an investor.This enables you to earn a fee on the initial sale of the partial to the investor AND keep a portion of the future payment stream.

They are acting as an agent without the laws, ethics requirements, education, and insurance that are vital IMO.Many of these operators suffer from MYTHOMANIA.

Just started the rehab portion on Monday of what looks to be a promising flip. 

Your numbers look good, except your 20% capital gain tax would only be about $79k (20% x the portion of the capital gain not attributable to depreciation recapture).Are we really facing somewhere around $100k in taxes if we don’t do the 1031?

My advise - take it as a grain of salt - set yourselves up for future success...make a clean transition into this new chapter of your lives together - find a new place to live aside from your rental property, keep your property rented and keep collecting that money - hell, use it to pay your portion of the new place.  

Networking is a vital aspect to the process of Real Estate success.