I would just be cautious about taking on such a high cost basis this late in the cycle because when we see the next buyer’s market it will probably cut into your equity.

I know that it's not nearly as clear cut as that but that was my general plan.

Simply put, the smaller the variance between the basis and the sales price of an asset, the less capital gains taxes are due from the sale.

Not choosing to do something because you don’t want someone to be paid makes no sense (cutting off ones’s nose to spite one’s face).  

There used to be one, but normally people post questions in the larger groups and simply add the location (usually Canada or the province) to the heading.

I simply am providing you with actual data and common sense so you can learn and start guiding others on the right path.

Because buying a one-off in those areas and then paying property management is going to cut or kill your profits.If you are doing OOS, you should focus on more turnkey or rent-ready over value add because as a new investor, you are going to lose money on the remote rehab.With a prior bankruptcy, an FHA loan, and 50k from someone else or inheritance, I would think a little more solid about how you want to invest.

Why don't the banks simply charge a higher interest rate to secure the business and cover themselves?

My father is not interested in keeping the properties in his name and simply having us manage them, but is open to the concept of us owner financing them from him with a long term, friendly agreement. 

They also act like the ARV is the same as what a property would fetch on the open market.This simply isn't the case in markets like Detroit.