On the other hand, Section 8 can be a nightmare if the owner/landlord/PM views it as an easy way to overcome a vacancy but doesn't perform any oversight. 

I am very much into the benefits of building wealth through buy and hold, so I want to point you in that direction, but the 1% rule doesn't tell me anything about how that property will perform.

You should be calculating your return on how much equity is trapped in this home to get the best picture of how your investment is performing.

My uncle would provide the purchase price and down payment and I would perform all of the work and we would split it in half.

If the buyer performs, they are credited that amount at closing.  

Example, the water heater leaks, create damage, mold, remediation, etc.. what they will tell you, you should replace or performed preventive maintenance on the unit, no proof of it.

@Eric Michaels - this is absolutely a great approach to turning around under performing rental units.

I have a spreadsheet with amortization schedules on all the notes, along with the properties' performance each month, so I can play different scenarios and see the effect of using the cash flow, along with my additional personal input.

There is no tax on the income from rents, so there is no need for deductions against that income.Many folks say, as @John Thedford does, that it therefore makes no sense to invest retirement money in real estate because you give up all the write offs.While that is true, is is providing the correct answer to the wrong question, in our opinion.One should not compare the performance of a particular asset class in an IRA with the same asset class outside an IRA.  

Put in penalties into the contract with performance failure