We're about to close on Nov 30th on a duplex near downtown Burlington.In terms of REI, we're okay taking it slow, as we still have full-time jobs that we like and are well paid, and are mainly seeking real estate as a way to diversify some of our savings and generate passive income.

I can't provide income docs, DTI is also not going to work in traditional way.

Annexation, zoning, density, preliminary, and final plat approvals are examples of the steps associated with increasing site value.How much value is created is determined by deducting the "as-is" value from the entitled value.Establishing the entitled value involves determining and underwriting the Highest & Best use of the site and applying a residual analysis.A residual Land Value Analysis is conducted by establishing the built-out value of the project and deducting everything from the total value BUT land.The generic formula Total Sales or Capitalized Value - a Target Project Proft - commissions & closing costs = Residual Project Budget - Site Cost - Hard Cost - Soft Cost - Finance Interest points and fees = RESIDUAL LAND VALUE Residual Land Value is the price that can be paid to acquire the property that is supported by the Project planned to be built on it.One of the most important factors in doing this analysis is an Income-Driven approach.

I don't have any first hand experience with BRHP, however keep in mind that Source of Income is now a protected class in Maryland so you aren't supposed to use their voucher status, or what program they are getting their voucher from, in your screening process or as a reason for denial. 

Run their credit, verify their source of income.....  

No need to clear these if I just want to keep them for passive income.

Chances are, they will avoid you because they are not planning to report this income.

I would be collecting a fair flat rate late fee and enjoy the extra income.

In answer to your questions, investing to be have passive income. 

Replace the mortgage payment instead with a monthly rent payment, add up all other expenses, then subtract from your reasonably numbered monthly gross income based on market trends for nightly rates for your size property with similar design and occupancy rates of the area.Once you get this number add up the yearly net income and divide it by total cash invested and you will get your ROI number to tell you if you think it will be a good investment or not.