Almost half of my portfolio has Section 8 tenants in it and as non section 8 people move out i try to move in more Section 8 tenants but i make sure my property manager screens them THOROUGHLY....not with just what's on paper regarding credit report, income and past criminal activity (If any).....I make sure my PM screens to make sure they have no pets, no evictions, no smoking OF ANY KIND and no felonies and we still get TONS of people calling...the biggest problem becomes picking someone from who is left.   

Internet and phone and cable should be in their name so if they don't pay for it, it's not on your credit history. 

Then work on getting some more rentals (maybe even get an asset based line of credit using this paid off property - the note itself will act as a deterrent) and build more wealth before spending time and resources on LLC.Here is another "rule" - the "2% ASSPRO or CYA rule" - the cost of setting up and maintaining your asset protection should be less than 2% of equity you are trying to protect.

This distinction if of course most important when you need to use cash out proceeds to pay down credit cards used for rehab or keep the ball rolling and re invest for more flips/investments.  

I've driven them both during the day and they seem a little crowded with multifamily houses and overall busy but I don't think that necessarily means they're terrible areas full of bad tenants.

They are rated A+ on Best but google reviews terrible.... i mean really terrible.  

I have pretty good credit and no debt currently.

Hello,First off, I'm a 21 year old college student with little to no credit looking to purchase my first investment property with my dad.

Hello everyone - i have a question about the feasibility of a strategy I hope to employ in the coming months to make my first real estate investment:I currently gross ~150K annually, have a 750+ credit score and have saved ~$40k that I can use to purchase an investment property.

Then you shouldn't have these issues.OR:You have terrible management and the tenants are at fault, in which case find a better PM ASAP.