We are taking a tactical approach to sticking in the D(M)V area, where we will be able to acquire assets that would be easier to manage given the proximity to each other.

It would be great to line up a (not overpriced) asset to acquire before you get to closing date on your sale.  

I have three SF and intend to acquire more in the near future.

A good lender will be able to offer strategies for you to acquire more rental properties with different loan options.

Identify few local property managers - Let them know that they will be the one managing the property if you acquire it through them.

I’m hoping I can acquire for $299k w/ 20% down, and a rent of $3,000/mo per current occupancy.

These reports may save you a lot of money from the mold remediation, if such is necessary, and to protect you in case of a future court case.

Ask the seller to offer seller financing- This way the property will still be under our ownership and fewer funds will need to be acquired by a lender.What would you recommend in this situation? 

You have the right idea of how to market.As a broker, I encourage sellers to get a phase 1 before we go to market - that way we know ahead of time if there is any remediation and can either fix it ahead of time or price in the work.

@Curt Bixel I don't have any personal experience with section 8 but here is a helpful guide from rentprep.comhttps://rentprep.com/landlord-...I would have the inspection and allow the HUD inspector to bring up any asbestos questions (or not) and suggest the remedy.