In my experience, REITs are terrible at managing their property.  

You’ll spend more on surveys, permits, and building which is where you’ll need the financing or to pay directly over time.

If you are setting aside funds for capex, taxes, insurance, or other expenses that don't occur monthly, transfer those funds to Savings each month and hold them there until it's time to spend them.

And lastly, make sure the property management company has experience leasing and managing Section 8 properties, since there is a lot paperwork and processes, and I've seen experienced property management companies who do this stuff all the time, screw up on multiple Section 8 leases to where the tenant's packet expired because they were so incompetent.  

I am open to any place on the northern side of California/Oregon or Washington, However, I am also open to any other states if I could manage the property remotely.

Also, make sure you spend the time building a solid team (agent, lender, property manager) and run the numbers through your team multiple times.

Anyone have experience as HOA Management in what happens to revenue when property owners losing their houses?

At the time the taxes owed was approximately $40,000.

Definitely best time to do it is while kids are young I agree.

Having a single source of capital is great, and "easier" in terms of relationships to manage, but it is also high risk.