If they pay, they are in compliance and you carry on with your lease agreement.

The house will carry itself if not even cashflow a bit.

I carry as little CC debt as possible, I try to keep it at zero.

It was an 1800 SF colonial in much better condition, didn't need new HVAC, but did have a big $25,000 foundation hit.With that said, what are you carrying for your rehab costs? 

If you have a history of late payments, carrying a balance, or have just never held a credit card before and are unfamiliar with the temptations of having an easily accessible $5,000 sitting around can be, I would highly recommend you sit on the sidelines.

Because commercial loans are often shorter than residential real estate the equity you're generating with the monthly payments can be significant.Sorry, I got carried away.  

However, @Mike D'Arrigo makes a good point with needing 20 homes that will carry you well over the 10 mortgage conventional max.The net result is that if I were in your shoes I'd be evaluating what a good first investment is for the $100K. 

I'm curious how much of an adjustment do you make for that, knowing your exit strategy has to be to keep it as a rental or sell it to a cash buyer or carry the contract yourself?

But I've merged the two approaches now to think "how can I afford that without going into debt to get it" (even if the debt is considered "good debt").The problem with "good debt" (borrowing money at a low rate of interest and investing it at a high rate of return, also known as the "carry trade" or "leveraged investing") is that when the world goes through an economic calamity, the high rate of return comes to a halt, but the low rate of interest on the borrowed money continues to be owed (based in my experience with a HELOC used to finance various purchases of income-producing assets over the years).Also, if the asset used to secure the borrowed money goes into free fall, the lender sometimes has the right to reset the loan (in the stock market, this is known as a "margin call").

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.