He spent $500k more than what I believe was fair market value.

The caretaker would be required to assume paying taxes and insurance plus upkeep.Both units need a fair amount of work prior to being rentable now that it’s been vacant so long.

Make sure to get fairly fast internet if you'll host a lot of guests. 

If you have a relationship with the seller, if the property is fairly priced, if the seller is motivated, and you identify it as a deal, then you can send an LOI after the first call.

Eichholtz’s initial research showed that real housing prices (corrected for consumer price inflation) gradually changed over time, but were fairly equal in 1973 compared to prices in 1628."

Ugh, Madhuri, as someone who is heavily invested in Detroit and helps a LOT of out-of-state investors get started there, this makes me sick.I talk to about a dozen folks per week looking to invest in Detroit and I've heard my fair share of Flip Systems folks.

Potential Equity is not skin in the game. 

Also, it seems fairly safe for someone like myself- looking for a first investment and of course building wealth, but perhaps even more, trying to "get my feet wet" and learn the processes while getting a feel for real estate.

Secondly a 7% rate with 1-2 points depending on LTV, FICO, DSCR, and prepayment penalty does sound fair/market standard.

@Steve Rozenberg Fair enough.