@Mark NeigerI would first resolve the internal conflict of not having nearly enough time to devote to finding a value-add deal vs. trying to find a value-add deal.

I used to work international contracts so I was working with people doing exactly what you are talking about doing.There are no major cons to it, assuming you have found the right people in the US to work with.

Greetings @Eric Baum,My group along with @J Benoit is the largest turnkey operator in Birmingham offering properties to both domestic and international investors with acquisitions, renovations and property management.  

NEVER EVER EVER let a section 8 tenant move into the house or sign the lease untilthe unit has been inspected by the housing authority and passedthey have approved your requested rent and told you the tenants portion they will paythey have approved a move in datethey have set a date and time for you and the tenant to meet at the housing authority for you to sign the housing authorities lease addendum.you need to make sure the tenant has called the Utility company to have service put into their names as of the day the lease is supposed to startprior to meeting to sign the lease you need to confirm the tenant has the required security deposit in fulltenant does not get the keys to move in until the day before or day of the lease start dateyou have provided your banking info to the housing authority for the direct deposit payment setupAt this point without some internal point of contact that you can call directly, you should go down to the housing authority immediately to speak with the case worker or a supervisor about the situation.

You may want to check on HOA policy if they have material requirements and if you need their approval for internal renovation; make sure you do your due diligent and double check the prices of all material.  

I started out year's ago and the success of our hard work was given "sold" to hedge funds and international buyers.  2 years ago I saw the light and haven't looked back.  

However, the more interesting part of this tax strategy is in figuring out how to permanently defer the gain vs the temporary deferral that the Internal Revenue Code offers only up to the point where you finally divest of the property and must pay the piper so to speak...

@Tom Shepard,The internal numbers to the deal look reasonable.  

But then, it hit me, when I sat down with one and he explained why he stopped taking on "interns".

If you replace all internal pipes but still have galvanized as the main rusting inside out the water pressure will be low.It is usually worth every bit of money to pay a plumber to scope the lines before purchasing for issues.