Set clear expectations and establish a process for addressing concerns and updates.

As a financial advisor if you were providing recommendations, I would make sure the sponsor has some type of Due Diligence report from Factright or Mick Law or another third party firm. 

We can give you some starting pointers, but you can't really avoid engaging with your own advisors for an actual plan of action.1.

I think many folks getting established simply may not have the cash.

This circumvents HR, which usually just sends me to The Work Number, one of the most useless companies since the establishment of western civilization.

As you get further away from standard real estate practice, the risk is increased by a “legal” risk that your protection may be interpreted quite differently than you expect by a court and that the subtleties of the protection a mortgage or trust deed document provide with established law and court decisions handed down for (in the U.S.) 250+ years is not existent. 

Plus, older properties in established neighborhoods often have more stable appreciation over time.On the other hand, the new development, though slightly more expensive, might offer modern amenities, energy efficiency, and potentially lower maintenance costs.

Of course, consult with your tax advisor.

I don't have as many tips for solutions mid rehab, but I do know that most, if not all, of the very active investors that I know have established relationships with 2 or 3 lenders that specialize in programs that match their strategy and have an agent or two in the investors target market to help them find more deals without having to put much work into finding them.

A good contractor that has established themselves in Detroit and a realtor/broker that runs all over Detroit checking out properties I find on and off markets.