I've heard many complaints about filthy living conditions, break ins, vandalism, leaving the place a mess, pet damage, etc. 

Usually with domestic abuse complaint the party filing can legally be released from lease within like 30 days.  

No many I can tell U that.. its illegal in all states but its really up to which state wants to follow up.. you advertise a home you don't own in Oregon and someone files a complaint your going to get a cease and desist and a fine .. no question..

To echo the rest of the posters, I certainly wouldn't advise skipping out on the tax … It might be criminal and, if you get caught, cost you more than you'll save. 

Maybe you can file a complaint with the State against this agency.  

All you absolutely have to have is a clean criminal record to get that registration.https://hic.attorneygeneral.gov/login.aspxI hope this information helps you in your future as an investor in various ways.

A complaint(s) filed from the neighbor will prevent you from renting out. 

I think it would be hard to enforce unless you enlist the help of the non-smoking tenants which them may involve you in a lot of other complaints that as a landlord really aren't your responsibility. 

The mistake looking back was that there was no clear exit strategy proposed other than criminal activity or unanimous liquidation.  

I've done some research in the forums here on BP, and one common complaint I've heard is that repair costs tend to be higher for Section 8 tenants due to a combination of annual inspection requirements  and lack of tenant responsibility.