The tenant is doing everything right but the assistance program pays out late.

The goal is to have this home pay for itself and eventually be able to retire to this house full time in about 10-12 years down the line.

What do you pay that poor guy?

If I sell for $250K, how does that get divvied up between profit and paying off the mortgage I took out? 

That's not cashflow, that's raising investor capital to return investor capital and charging a fee in between.2) Claiming a low basis of $132k/unit while loading the deal with so many fees and reserves needed to make it not an immediate foreclosure, that the all-in basis is actually $193,952.

No buyer is going to come in and be willing to pay an assessment unless they are getting a deal on the unit. 

I spoke with them, and it seems like you are paying them 1% to help you go through the process... that's about it.

As long as the city does not hammer the builder with connection fees  ( or waives them would be best) I can see this working well as long as folks will pay that much to live there and of course Schools will dictate how well it will do long run.  

Seller has no money to pay utilities or buy groceries.

I've studied various strategies, but I found that the guru made it seem like I wouldn't succeed without paying a significant sum for his program, which didn't resonate with me.