Funny as it wasn't my first choice. 

Give her notice of a rent increase to $1200, without the garage, and allow her the choice to pay or vacate.

If you own decent looking properties in good neighborhoods you likely have a preference and will not be forced into accepting section 8.If you own in a bad neighborhood, you'll likely have little choice...you'll be forced to accept section 8.Yes, I get it. 

If you experienced repeated disasters here and chose to move elsewhere, the freedom to make that choice is yours.  

Before I made my choice on a three family.

If your competitors offer laundry you have little choice 

This is just my personal choice, not meant for apple/android/windows debate...

I made up my mind that I want to invest out of state just because I cant find anything in California where I live.I am narrowing down some areas of choice Ques I have for you guys is what are some of the things you do or re-search for to make you want to invest in that area? 

I don't know where you are I was not able to give you any answers with your geography.Build your buyers list by making good choices when you get good deals. 

Most bank won't lend to you if this ratio is above 43% (there are some types of "debt" that may not count towards this ratio, and some types of "income" that won't count as well, but that's the basic rule).But conceptually: if you or your Dad had sufficient incomes and little existing debt, I think your idea is great--it's what people on BP call "house hacking" (living in one unit and renting out the other).