What should I be concerned about , or what would you do?   

Ive yet to call the attorney to see what they want, but my real concern is can they mess up my agreement of sale or stall that process?

So, while it's only a 1% deal - it's a great deal , as far as I'm concerned. 

During lean times, having Section 8 can be extremely valuable, during really good times, such as now, you can often get really good market rate tenants that pay more than section 8. 

If you can find a reasonable place to rent, it might pay to postpone buying a home until you get a bit ahead financially.The Total Money Makeover by Dave RamseyI know his views can be seen as extreme, and I am not sure that I would not get into debt ever at all, but I still think focusing on getting out of and staying out of personal debt (that of course, does not cashflow) is a great way to pave your path to wealth.If you have not read these books, I highly recommend you do, and listening to the Money Show here on BP will also give you a wealth of information regarding personal finance and Financial Independence.Best of luck to you!

What are the legal ramifications/liability concerns with doing this without an LLC?

I'm a newbie looking at house hacking and currently got conditionally approved to purchase a 350K 4plex in the state of Texas .However, the loan officer wants me to write a letter of explanation, apparently to be sent to the underwrites concerning my work history.

The taxes are a concern. 

The other reason is that it makes it a little easier to self manage......as far as the tenant is concerned, I'm the manager and a company owns the property. 

The numbers currently make sense but we are concerned with the potential Health risks as well as how this could effect us being able to rent the units in the future or selling  the property a few years down the road.