I probably have an average of $150k of equity in each house. 

Its an amazing house that I got for a great price and it was in remarkable condition compared to others I saw in my price range.

That loan is great for house-hacking either a single family home, duplex, or fourplex.

As long as you close on your house before the foreclosure sale date, you're fine.

@Jason Sinclair, having a designer for a wife, I would answer that it really depends heavily on each house, the flow and usability of the spaces as they are, and the overall use of space in the house as a whole.That being said, while there may be a small shift towards more separated spaces, "open concept" is by no means dead, and in many markets, most people seem to still want to have connectivity between their communal spaces.In fact, my wife's current flip is a split level (although technically it is a split-foyer), and she is taking out a structural wall to connect the kitchen, dining and living areas.  

I ended up renting a guy and his girlfriend a $10,000 house for $200/week. 

Currently have 1 SFH that is a rental and just purchased a primary residence that I will house hack until I have enough funds or equity to look for another property.

I am looking to do this on land where old vacant houses were demolished. 

House is on the historic register, once a bed and breakfast, a massive 4 bed, 3 story Queen Anne Victorian, very well maintained with multiple rentals.

But, could I minimize risk of renter defaulting on payments for the 2nd property by turning this property into a section 8 housing unit with guaranteed income from the gov't?