My goal is to buy the house, terminate the section 8 lease as soon as possible (at the lease term, to avoid eviction process), and search myself for other better tenants.

It's difficult navigating the home purchase process in general, but a lot of more difficult buying something with costly surprises you didn't plan for. 

Buying at the right time in the POPs, when the neighborhoods are still rough, will give you outsized appreciation.

I only recommend using a HELOC for scenarios where you'd be able to pay it back within a year.Alternatively, you can just buy another investment property with lower down payment, which is a better interest rate than anything you'll get on a 2nd lien HELOC/HELOAN. 

Buying into existing tenants can be very risky.

If you find a place where the numbers make sense, buy it.  

If you read what I said, I apologized if I assumed you weren't a HML and you were.My answer is still the same, there's nothing in the deal but problems for the buying from year 3 and beyond....and if you think I was lecturing you, you have a very thin skin. 

When buying a note at a discount (e.g. $100k performing I/O note for $90k), how do you classify the extra principal you get back when the loan matures?

Sell house and buy a cheaper house all cash avoid the current high interest rate.

Choose Your Real Estate StrategyRental Properties: Purchase properties to rent out for consistent monthly income.Fix and Flip: Buy distressed properties, renovate them, and sell at a profit.Wholesale: Contract properties and sell the rights to buy them to other investors.Real Estate Investment Trusts (REITs): Invest in publicly traded REITs for passive income without direct property ownership.5.