This is sort of what I was also thinking.  

That's sort of the catch, the larger the building and the more amenities it has, the more rules you will run into. 2-3 story walk-ups in nice neighborhoods could be a good place to start, lower HOA fees too.  

We have it under contract $30-50/SF under recent single family comps, so worst case we convert it back at exit and still cash flow in the meantime as a rental.

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.PM us if you’d like to discuss this logical approach in greater detail!

Detroit in particular has been a haven for out of state money and there is a sub culture that has developed of "contractors" advertising to provide this type of service while at best underperforming and at worst completely stealing from you. 

It’s wise to run different stress tests on your budget to see how it handles fluctuating interest rates, higher costs, potentially lower market valuations, or worst-case-scenario acts of God.b.

My worst appreciating property has apprecated $2700/month.

Although after speaking with other investors, some are telling us that it is not necessary to start a corporation for our first investment and its better to just buy in our personal names and incorporate later.This sort of advice that we have received is based on the information that a corporation costs more to start up and maintain.Should we incorporate now or later?

The worst time for me is when we hit 90% occupancy. 

In regards to your EMD (from what I've learned so far) If you are within your inspection period still &/0r have some sort of clause in your contract stating ( “buyer has the unrestricted right to terminate contract with a written notice no later than ( inspection period date) than you have proof.