FHA is good for low income, lower credit and offers higher DTI ratios to accommodate.

Net income = $39,240Monthly operating expenses are as follows: Trash - $33, Landscaping/yard - $66, Electric - tenants pay, Water - $95, Maintenance $87Monthly taxes about 3KSo, gross expenses are at $41,064If I'm doing the calculations correctly, my net operating income is -$21,888 and cap rate is -3.4%.Obviously the current numbers look terrible for this investment, but I feel like the rent should be raised significantly based on comps (above 2K each unit). 

The rates will be much lower than a HELOC and the leverage is also higher.

In theory, this should be a tenant paid expense.

Code violations are expensive to fix and will be used against you.

Means they lowered the price to increase their physical occupancy.  

and hard money would be too expensive, Am I missing anything guys???

Keep the 50% Rule in mind: about half of the rent will go toward non-mortgage expenses, when you average all expenses over time.

For example, if you occupancy at your BLT is only 30%, then lower your base price by 10%.

This person probably sites on the internet and thinks they know what they are talking about but again 100% clueless.Rental Pricing Regulations 99% of the time HUD pays MORE than cash.in OH anyway.Risk of Renting in Lower Income Areas SEC 8 prop can be anywhere, NOT just low income, I have props in the best areas in Cleveland.