Paying no mind to how easily and quickly the rabbit hole traps you.  

Noticed here in San Diego area communities  where homes are built pre 1960 up thru 1970's easily have  "mf in fill" looks undetectable, in many a blue collar neighborhood.

We all know the cash-on-cash and cap rate math depend on NOI so it's easily seen that the property value grows over time by how you manage your GSI.There is one major advantage to holding SFRs;  you can partially liquidate and still retain an income stream. 

One can get an eviction for nonpayment of rent fairly easily.

Pretty straight forward and easily accomplished.  

I can easily get 3-5yr ones on craigslist for basically a months rent.

First, the rent to income ratio is great and they guy had a legit reason for BK it seams, going through divorce and you could easily have an opportunity to ask for a higher deposit to mitigate some risk and even get a higher rent rate (slightly, not gouged).

Now, some people could easily just apply to live on their own and month later have a partner that lives with them.

You can't reject someone because they are on section 8.However as others have pointed out the fact that they are on section 8 could easily mean they will fail to meet some other basic criteria that you have like an income requirement or credit score.

So I'm definitely putting a vote onto your side of the coin, only because you could easily put in a heck of a lot of hassle to get something local and end up with minimal to no to negative returns on it once you have renters in.