I have been offered an exclusive Deal by a local "friend"/ semi-mentor in my small town.  8 standard 2/1 apartments -  Quad, duplex, duplex, 1970 Dated buildings, little neglected but liveableOwner finance: 20yr 6%rate with 20k down------------------------------------------------Total purchase 400KCurrent NOI: 41k     Cap: 10         (Tax,Ins,Maint, Util)Gross rent 4500/mth-----------------------------------------------Upgrade, Est repairs: 60k After reno: NOI: 59K   Gross rent: 6100------------------------------------------------Loan pmt: 2865/mth,    34k/yrCurrent Cash flow: 531/mth,  6,378/yrAfter reno Cash Flow: 2131/mth,  25,578/Yr-------------------------------------------------Added info- -Property line Joins with (growing) Community college-Tiny town-The Buildings are Currently "uglyish".- Current Rent is 150$- $200 behind market avg.I am very comfortable in single family homes in this town (own 18 SFH rented and performing well).

Your competing with big national lenders that are offering financing with low rates by buying the rate down. 

Ultimately, the decision will depend on your investment goals, preferred property type.

If not paid in 5 days (will depend on local laws) it goes to the attorney.  3. 

Yes you can get a HELOC on your primary residence even if its 2-4 units it depends on the bank.Try a local credit union because some banks or CU's will only do them 1-2 units, but there are ones that open HELOC's for 3-4 units too like BECU.org.

Depending on your PM's unit turn process, property will likely be vacant 1-2 months before you get the next tenants. 

I'm being quoted a 7.75% cash out refi rate at Houston Federal Credit Union right now.

Section 8 can be tricky depending on what state/municipality you are in.

The capital gain, $100k, is taxed at capital gain rates.The $36,360 in depreciation recapture is added to and taxed as ordinary income (No ss/med tax) up to a max rate of 25%….since it was deducted from your ordinary income as you claimed it each year.  

Again, this depends on your profile, state you are investing in, etc.