My mom lives in a nice house that she has paid off. However to save money when she had the house built, she left the basement unfinished--it is just studs, insulation, and windows/doors, plus plumbing in the foundatio...

Here are a few stats which should raise an eyebrow about Detroit $1 billion invested in more than 4,600 units of affordable housing over the past five years Job growth with more than 25,000 more Detroiters employed since 2014 A return to investment grade bond status for the first time since 2009Reductions in crime beating national trends, including the fewest homicides in 57 years Successfully hosting the largest ever NFL Draft at 775,000 people over three days In terms of starting out in Real Estate it also makes sense to invest in Detroit considering that the entry costs are low and if you plan to buy and hold, Section 8 makes for a great partner to insure steady rent payments.

I was able to turn my place into two units so no shared spaced helped a lot. 

It sounds like you have an un-permitted unit, which is essentially always a risk since there has been no notice to the AHJ that it exists and they can therefore initiate a code case to have it removed in most cases.

So house for house, apartment building for apartment building.Have your parents considered renting the house they are living in for two years and moving back into the rental unit for 25 months.

Ask how many units they manage and how much experience they have.

Building small units in small counts is expensive development.  

Sri,Are you a General Contractor/Builder or are you simply looking for financing to build a 2-4 unit?

I am not a PM, but I do self manage about 50 units.

Possibly using mortgage/home equity loan on one unit we own to buy an extra one.3.