The first level is roughly 2,000 sq ft with a business renting it and the second floor has 2 apartments that are each about 900 sq ft with 2 bedrooms each. 3 furnaces, 3 kitchens, new roof and vinyl siding.My question is this, should I be worried about the fact that its zoned commercial??

Everyone has their own comfort level. I

I had a good run with that the last couple years but legislation is making it much more difficult to continue making a nice, steady income at the level I am used to.

Detroit has always been one of the riskiest cities but there are people who defend it.A lot of it depends on what your risk comfort level is, how much work do you want to do on a long-distance property, do you want some appreciation potential with it on top of the cash flow, are you a fan of headaches or prefer to avoid them (some markets are better for avoiding them than others), etc.

Passive investing at some level is a great way to go but you can't be passive on educating yourself on the options.

What's the Radon level? Is

A floor being 8" off level is much more of an issue than "new flooring".

So whatever decision you make, ensure that you check out the properties thoroughly (particualrly the location) and leve yourself plenty of cushion.

I guess my long-winded question is this: Assuming the homeowners I spoke to are on the level, is this sort of penalty/behavior even allowed or legal from an HOA?

The reason that it is outside of their comfort level is most property management companies focus on one part of property management.....get home, find tenant and collect rent.