I just bought a smaller apartment complex and three of the tenants are on the Section 8 program.

Seller paid closing costs are usually called a "seller concession" and appear on the settlement statement as amounts paid by seller for buyer.Your assumption would be correct for the buyer in #2.

He did mention that he was in a credit repair program and that these should be removed soon.

Unfortunately I have invested a lot into some of the guru programs.

Northwestern Illinois has traditionally been a good market for Lonnie Dealers as there are absolutely no street dealers in that part of the state, and smaller communities do not have strong sales programs to control their infill needs.

It appears to have consolidated nicely between 1700-1800.

So far that appears to only be an option if it is my personal residence.Right now, the property barely breaks even or is slightly negative (using 50% rule)in cash flow until the credit card debt is reduced over time.

Because you are able to get such cheap money with such a low down payment, it appears you'll be okay returning $110 a month in free cash flow.

It appears people believe the only way to get 2 - 2.7% returns is to be in a war zone... is that true?

If the home is priced right for the market, the buyers will appear.