The issues get a little deeper, but the key takeaway is that careful planning is very, very important.  

On paper, the plan here is that you get some rent from Section 8 directly and some from the tenant.Are you still getting any rent from section 8 ?   

It sounds like you've outlined a comprehensive plan for getting started in real estate investing with $55k.

@Thomas TalbertI recommend finding a tax strategist specializing in business taxation and business tax planning.

Spend more on overall maintenance but bottom line NOI 30% better than if all TOH. 

Each investor who evaluates your deal will have their own plans for it in terms of rehab & contractor pricing.

I was planning on focusing on small multifamily properties (duplexes, triplexes, and quadplexes), but I'd be interested in hearing people's' thoughts on the best investment type for the area.Thank you for your time.

As for the rodents, call a company and have them come out and deal with it...take photos before and after so if the tenant does something (ie puts out more rice), you can show that the tenant is deliberately doing things to attract rodents. ya we planning to call the health inspec saying the fridge is their to use but if they make it dirty and smelly we cant control that and its their responsibility.

It's always good to have a backup plan!

You can spend as little as $100 to form an LLC, or you could use an attorney and spend $1,000 or more.