@Thomas Loyola you haven't addressed the Class of property you intend to buy, so your assumptions could be too low or too high.Your biggest challenge is you are assuming you have to pay asking prices!

I usually have found most of my contractors at lowes or home depot in the early mornings.

For those that are 1-4 unit properties on fixed-rate 30-year mortgages, I'm generally not making any changes since they were purchased at low interest rates.

Some areas/neighborhoods are more STR friendly than others. 

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.PM us if you’d like to discuss this logical approach in greater detail!

Put the capital in a low-risk instrument (CD, t-bill) that will preserve as much capital as possible even while making your mandatory (5%?)

I buy where people want to live, not where property is cheap due to low demand.  

You can acquire your a primary residence from up to 1-4 units for as low as 5% with conventional or 3.5% FHA with a few exceptions.

-Do the area demographics support occupancy and higher rents (population growth, low unemployment, low crime, increasing wages)?

In addition, the neighborhood did not seem to be great.