As mentioned before, you can get away with paying for the draw money, but not using it. 

Now, you need to figure out how to find deals and pay for them.

For a 30 year Conventional loan, I'm at 6.5% rate (6.808% APR) for a duplex, 95% LTV, 780+ FICO, owner occupant.And I'm assuming they're paying $2k of your closing costs - not your down payment.

So all of the gain and depreciation recapture are initially still tax deferred.However, like Joe said, the down side is later when sold  you lose the 1031 option. the client will pay tax on all gain and depreciation recaptured from before the 1031 also. 

Step 2- close and start rehab-- would need to pay holding cost during rehab?

HI all we to are Canadian and invest in Detroit where we have a great team on the ground.

Section 8 refers to a voucher that some people use to pay for their housing.

And I would love some passive income or at least someone to pay my mortgage until we can pay it off maybe.

I can pay some va's 400 to make 1,000 callls per week.

That being said, your typical cost of capital is as follows:EquityAgency debtBalance Sheet local lenderDebt FundPrivate DebtPref EquityHard Money DebtBookie/Loan SharkOther things that will impact capital sources: are you wanting to finance the improvements, or will you pay for those from equity/cash flow?