Some people definitely make money in those areas, and ROIs do tend to be high on paper, but you need to be very very familiar with the market and local housing authority regs, and be able to manage them yourself.

I have disclosures and authorization and all of that.

In either of these structures, you will have signing authority for the plan and operate out of a bank account of your choosing.  

You need to contact your local housing authority to get guidance.

Bingo.After talking with the owner, owner wants nothing to do with the property but has a mortgage on it that in his words,"He will never put another dime towards" and he had no idea if he has been foreclosed on or not, which it turns out, he had not been.So I get the name of the bank, and after several rounds and letters of authorization, and the officer being surprised that they had the mortgage still (They had a systems upgrade that purged information...) we finally get to the point of talking about what I could offer on the note as the institution has written off the mortgage (quick side note here the owner decided to do some remodeling work and took out the floors, subfloors and a few other walls so understand that this property is really nothing more than a shell at this point and will need all new systems, insulation, drywall, etc  you get the picture, full tilt train wreck).  

I'm not sure who has the authority to do this (or who did it).  

If an agent (your property manager) is acting with proper authority using reasonable care it is standard practice for a principal (property owner) to indemnify the agent under common contract law. 

Boiled down, it's getting a lease with the option to buy from the property owner, then not occupying the property yourself, but having agreed terms with he owner to be authorized to sublease to another qualified party, while you then serve as a quasi-property manger of sorts during the sub-lease term, then ultimately selling the property on a double close or similar funding situation tot he sub-tenant and using that money to pay off the property owner on your original contract. 

Check with your local planning authority to see if the suite can get its own address.

You are hereby notified that you must object in writing to this deduction from your security deposit within 15 days from the time you receive this notice or I will be authorized to deduct my claim from your security deposit.