Recently, management changed it so both loans can be made with one payment versus two separate transactions. 

Section 8 can be a profitable and reliable resource but it is 'their ball, their court' so know the rules first.

Generally speaking, with SFR or small multis, I just rely on the lease/rent roll (and some form of proof of payment; i.e. bank statements, deposit receipts, tax returns, etc.). 

If there are no other red flags on the tenancy (i.e payment issues, lease defaults) I would still renew tenants (even if they are a little corky!) 

We just need to verify that you have cash for the downpayment, closing cost, and up to 6 months of the mortgage payment as reserves.

My plan is to use a low down payment conventional loan, and with the factors you mentioned, it’ll likely be tough to find a property that breaks even.

As already mentioned, you could sell via seller financing to lower AGI, as all you would have to claim is the payment income - until balloon payment received.Did know an investor that had 14 properties paid off and he moved into one every two years to then sell with the $250k single exemption.

DSCR (Debt Service Coverage Ratio) loans generally focus on the property's ability to generate enough rental income to cover the debt payment.

If they don't NEED the money for a down payment elsewhere, the income could certainly fund their payment at a new home, rental or retirement home. 

We are hoping to streamline tenant communications, maintenance requests, and payment records.