I have wanted to buy something in this neighborhood for a long time.I have networked with someone who is recommending setting this up as a rooming house, no leases but billed monthly (not weekly).Here's how it pencils out:Purchase price: $100,000 // +$5,000 for conventional mortgage closing(An identical duplex on the same street recently sold for $123,000)Initial renovations: $5,000Rent:$500 x 8 = $4,000/monthIncome - Coin Laundry:$200/monthTotal income:$4,200Monthly Expense Breakdown:Debt service: $800 (P/I/T/I)Management: $400Repairs: $400Capex savings: $400Gas: $150Electric: $150Water: $150Internet/Cable: $150Vacancy: $750 (planning on 1-2 rooms empty a month)Total monthly expense:TOTAL: $3,350Cash flow:TOTAL: $8,500QUESTIONS:1) Do these numbers seem conservative?

(No sense wasting your time/money screening someone who doesn't even have their voucher yet, in my opinion.)If everything checks out and you want them to be your tenant, you can then fill out the Request for Tenancy Approval form and submit it to the Housing Authority along with the other owner information papers (i.e. owner verification form, disclosure form, pre-inspection checklist, etc).After that, the Housing Authority will inspect the unit and you're good to go. 

. - the word "conditional" ;)You establish the conditions under which the release is to be executed; one condition is that your new buyer and the seller enter into an agreement identical to that which was originally in place (except for the name of purchaser of course), another condition being the amount of compensation of course. 

FWIW:  The reason I'm interested in this unit is because I already own an identical unit in the same building. 

-----I just could use some verification that closing locally makes sense, since I have no experience - given the extra cost.Any input greatly appreciated.

.$70,000 out of pocket v $12,250 out of pocket (let's pretend closing costs are identical, so only the down payment changes).What is the cost of keeping that $57,750 in your pocket? 

There is a fist-time bank verification required too, but it's not hard. 

Most comps on the street are hovering around 200k, and this almost identical house recently went for 350k.

@David Weintraub I would say if she is more than 30 days late you will probably need to go non prime because the underwriter is still going to want to see the verification of mortgage.  

@christopher phillips My realtor sold an identical house on next street over 8 weeks ago for 131,000 but it needed updates a roof and Windows.