Many investors are (rightly) afraid of dealing with foundation issues so it can actually be a profitable niche once you learn what you're doing -- and if you have a super competent foundation repair company that you can work with.Some end buyers will be leery of a place that has had foundation issues, even if they've been properly repaired.

@Sam McClellan The Pro's... you get your place inspected once a year which keeps you and your tenant on top off things and most if not all of the rent is paid consistently by the government.The Con's... most landlords think they don't need to properly screen Section 8 tenants, for some reason they think the government has already screened them and this is far from correct.Screening is highly, highly important, with or without Section 8... that's the key!

One thing about older properties is that if they're not properly rehabbed it will be a headache for you, especially if you're not close to it.

If so, what would be the proper way to do it?

Can I come back and say 'sorry mr seller, I'm not able to acquire the proper financing, but I can rent it from you for $700/month and I'll buy it from you in a year'?

I think he just cut corners, didn't install  proper weed barrier do didn't make it 3" compacted so stated in error contract.I didn't ask for references (my mistake) and I believe the license number was on the contract, I will check tonight.  

You need to have a 506c offering and proper securities documentation. 

When doing a sub2 deal how should insurance be structured to be covered properly?

Something to look into with a properly licensed contractor capable of the work and familiar with your building codes.  

Arnie the judgment can be from a medical collection company, a scorned contractor, all kinds of things.If people do not show up or were given proper notice then a judgment is issued by default.The tenants can file a "motion to vacate" to have the judgment vacated.