Given the choice of staying in a property that has been updated versus one that has not been updated you're going to loose tenants to the competition.

She said I will loose my Section 8 if I break my lease.

It can be really worthwhile to manage your own properties to learn what it's like, but eventually you have to look at your time and realize that by managing your own properties you can quite unexpectedly be loosing money due to opportunity costs.For example, recently I had two units turn over in a plex that I own about five miles from where I live here in Portland.

Only cut loose funds as you go - Draws.  

Thanks for taking the time to respond,Matt I would use the term "conventional wisdom" loosely - show me one person that has 10 free and clear rental properties and is regretting it.

They just had a loosely developed plan. 

If not then simply cut them both loose.  

If they refuse, then they will remain bound by the terms of the current lease, but most people will probably willingly sign your lease.We bought a fully occupied 14 plex and 13 of the tenants happily signed the new lease. 

They are bound to have very attractive Cap Appreciation but I wouldnt do it for the very same cashflow reasons.Hope this helps. 

you will loose money on this one..