As you get further away from standard real estate practice, the risk is increased by a “legal” risk that your protection may be interpreted quite differently than you expect by a court and that the subtleties of the protection a mortgage or trust deed document provide with established law and court decisions handed down for (in the U.S.) 250+ years is not existent. 

Plus, older properties in established neighborhoods often have more stable appreciation over time.On the other hand, the new development, though slightly more expensive, might offer modern amenities, energy efficiency, and potentially lower maintenance costs.

@Aramazt Tanashian I'd be cautious as no expert works for free.So, either this person talks a good game, but doesn't know what they are doing, OR they are hiding how they'll make money finding you a property & rehabbing it for them to manage.EXAMPLE: contracting companies make 20-40% markups, so why would this consulting company not charge to handle rehabbing a property for you?

It is true that more experienced investors will often have better construction networks, resources, and established processes that will allow them to pay more and somehow profit more.

Avoid the capital gains and use your Shedule E, LLC or business returns to offset passive income with great tax deductions and write offs.A fix and Flip can offer a good way to get some fast cash and deal with taxes in aother manner but again its still not the long game I think works best. 

A good contractor that has established themselves in Detroit and a realtor/broker that runs all over Detroit checking out properties I find on and off markets.

I don't have as many tips for solutions mid rehab, but I do know that most, if not all, of the very active investors that I know have established relationships with 2 or 3 lenders that specialize in programs that match their strategy and have an agent or two in the investors target market to help them find more deals without having to put much work into finding them.

IF you're in a HCOL area or HCOL region in a normal area, definitely add a bathroom it's a huge appraisal add and game changer. 10-15 years from now when you sell, nobody wants a 3/1 now and won't then. 3/1s stay sticky in any market I'm in, I'll buy distressed and add 1-2 bathrooms and get a huge return on just that. 

We decided on a % and they are stoked because they wanted in the long run this property to be a gameday house for football games etc.

My name is Miguelli and new to the game.