I invest in Detroit as well, and it's a city full of opportunities if you take the time to understand it.A couple of quick tips: Get familiar with the neighborhoods—Detroit is very block-by-block, and the difference in property conditions or tenant quality can be drastic just a few streets apart.

@Bracken Bjorn The answer is in the local data...and the data might look differently to you than someone else...it's really about your goals, tolerance for risk, available resources, and personal preference...

If you spend a couple years of cashflow on a new roof, that means you should be free and clear for a couple decades.

Or any other options you prefer such as a 1031 exchange?

You are correct about that, but that's usually a computation and decision that an investor makes after a couple single-family homes or small multis.

They will normally have some pre-payment penalties in the first couple of years but if you are keeping long terms that's not an issue. 

There are a lot of nuances with this type of investment, but between Padsplit, your GC, and an agent, they can guide you through your first couple successes. 

I know a couple local hard/private money lenders I can connect you with, one of them is a sponsor at the Dover real estate investor meetup that takes place the 2nd Monday of each month at Chapel and Main Brewery.

I have a couple of Bay Area clients and used to live in the Bay Area myself.

I was actually looking at a fully financed deal in St-Catherines a couple of months ago.