@Cary Ferguson Jr guess it depends on how low rents dropped during that recession, but based on what rents dropped to last time during the recession in this same area..I think I'd be fine. that's what I find so odd?? 

Section 8 program is only to help low income tenants rent, this program is not to help with mortgage payments.

and then trust his experience to get it done well and with high quality.

I'm looking to get started in investing yet have a low budget to work with. 

Hi @Renata McCulloch & @Cameron Sigurdson to get a good quality note you should be prepared to have more like $50K available, although your IRA can partner with another party to combine funds to take down a note via joint venture.

There are plenty of opportunities at low or no cost to meet local R/E Investors.

Is $550 market rent are is that low for the area as well?

If you work on a power listing team then you might get some listings.If you choose to work with investors on SFR the price point is very low in most markets under 100k a house.

From my conversations with him, he is very happy with the results of doing light rehab work and getting quality tenants. 

Are there any loans similar to FHA where it is low money down for purchasing a rental property?