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.

Is it fair to ask the tenant to cover a piece?

I'm fairly new to the real estate game and currently have 2 properties; 4 bed 2 1/2 bath renters have been in there going on their 5th year, and a new 3 bed 2 bath we're looking into using for a midterm.I work as a radiology manager for Methodist and been with them going on 10 years.

There are too many ways for it to go sideways and only one way for it to work (you stay on good terms with your ex and everything goes perfectly with the house, you split the proceeds fairly when you sell).

With $170k to deploy you most likely will have that all in one, maybe two deals, if it doesn’t go well you could end up way worse off.That said, if there are other factors like the property is a huge pain to manage or you are worried the neighborhood may actually get worse or you know you need a new roof in a couple years, then I’d consider selling.Also, even though you said it’s not a high appreciating area, do you think 1-2% is fair?

I wonder if they're listed on there but have been occupied for years, by tenants who moved in when the fair rent was less?