Will be attending SECO 2018 to provide update on project in case anyone is interested.

@JEFF D. wish I could be more helpful to you, I have bought and sold 2500+ units and never had to do a Phase 2.As you finish out your due diligence period, and assuming you will sell this asset at a future date, a Phase 2 could limit the number of buyers in the future so give this 12 unit deal a real close look to ensure it is a solid deal.Good luck!!

I gave them a notice to terminate with a one month grace period which would expire 11/30/2017, i also sent out the document to Section 8 to keep them in the loop.On the first of this month i got rent from section 8 for the month of November.

Look up your local tenant laws to see what the time period is for tenants who abandon a property.

I'd rather acquire 20 units over a 4 year period with EACH unit at the 2%/4% rule in a C area then trying to simply accumulate a "door count" for bragging rights. 

Should I install bigger, updated tiles for the shower and risk the mold mildew grout issue or just install a prefab, fiberglass shower stall? 

Update for any of you following this thread.  

This would likely be your best option if you're looking to lock in a low interest rate over a long time period.

.% down of the purchase price and the rehab costsCan be used for primary residence with 1-4 units (could also be looked at as a disadvantage)  When using 2-4 unit property, projected income from other units can be used to qualify 6 months' worth of mortgage payments can be rolled into the renovation budget if the house is deemed uninhabitable by the HUD consultantCredit scores can go down to 600s (lender dependent) DTI can go to as high as automated underwriting system allows (typically 56.9%)Allows you to buy a property in any conditionCan use it to fix minor repairs all the way up to basically a full tear-downFHA 203k Disadvantages: Interest rates tend to be about .25-.5 higher than regular FHA loan Additional costs include HUD consultant fee, inspections, title updates, and supplemental origination fee (Cost of doing business, but this is built this into your numbers, so it's no big deal)Must use a licensed General Contractor for a full 203k or up to 3 specialized contractors on the limited 203k Must hold onto the property for 1 year and live in it. 

Definitely post photo updates of the work it will be interesting to see the progress.