But, could I minimize risk of renter defaulting on payments for the 2nd property by turning this property into a section 8 housing unit with guaranteed income from the gov't?

My votes are never to sway a favorite member.That's just me but stick around and I think you'll find there are no such issues.As to Michael's comments, BP is great and has better info than probably any one person can dole out, but many just can't read and do, a mentor on a persoanl level in a specific deal can't be replaced by any book, tape, CD, forum or phone call for that matter....IMOBP is worth more than any guru program I know of as to content, so get all you can for free, just takes a little effort.

I want to create a duplex up unit by combining the second floor and 3rd floor into one unit.

I rode high in that saddle.But then a series of unpleasant tenant things happened, and too many units needed to be rehabbed and rented out at once.

I am planning on House Hacking the 3 unit (live in 1 rent out the other 2)  for a year or 2 and then move out a rent my unit out.$200k is a lot of money if you are in a flat market.   

Investment Info:Small multi-family (2-4 units) wholesale investment.

Investment Info:Small multi-family (2-4 units) wholesale investment.

I am a veteran and want to use my VA loan to house hack a 4 unit, just curios if there is a market for it. 

If I was going to invest in such an area it would be at very low or no leverage levels, such that there would be a large delta between my gross rental income and my net operating expenses including capex, vacancies and reserve set-aside.

Also I think it's worse stating that the smaller units the more desirable.