When you put that in terms of a percentage of your net profit - that is 40% of your net profit going to the PM.

Neighborhood revitalization projects, major corporate investments, and an influx of small businesses were all happening at a pace that made it clear the city is on an upward trajectory.From an investor’s perspective, Detroit offers a unique combination of affordability and opportunity.

While it is possible and can be profitable to invest in small properties out of state, I don't think it's worth your time and effort.

The 1031 exchange will indefinitely defer all tax on profit and all depreciation recapture.

Budget carefully, prioritize high-ROI renovations, and adhere to strict timelines to maximize profitability.

However, it is an old home and you are thinking about major cosmetic upgrades too.    

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Insurance cost for weather-related disasters is growing to a major concern in many of the southern markets.

They usually have a small upcharge on the work done but it's generally not a profit center for them. 

If you are looking for a good 1031 QI, let me know as I have one that a majority of our clients work with.