Technically it would be best to get a C Corporate or S Corp. to flip properties and since you are considered a dealer if you do several properties a year and this could have negative tax consequences in an LLC.

The S8 portion will very likely arrive like clockwork on the 1st of the month.One strong motivation for the tenant to pay is they lose their voucher if they are evicted or leave owing you a balance.

An other advantage of paying with credit card may be that you will not have to send the provider a 1098 tax form (only an issue if the total yearly amount is over $800). 

Am I setting myself up for a tax nightmare?

It will have to be a pass through/disregarded LLC to keep the tax payer the same and the 1031 valid.

.: The applicant needs a social security number or an individual tax ID number (ITIN).

So obviously being in foreclosure, absentee owner, tax lien or any of such "distress" doesn't make you motivated.So what you need to ask yourself is "how do these software determine who or what is a motivated seller right?

He’s also interested in staying in the home if possible and deduct the rent from the balance he owes.

Which increases paperwork & costs for little benefit - if any.4) You'll need an entity in the US.You need to discuss all this with a qualified tax professional or attorney.- For our clients, we provide consultations with a tax attorney that handles over 300 foreigners legal & tax needs.

@Rafael Ramos All your goals contradict each other:(1) Cashflow: buy Class C & D properties2) Appreciation: buy Class A & B properties3) Low Crime: buy Class A & B properties4) Why would you want your investments to lose money to lower your taxes?