We both live in MI and my current plan is to invest in single- and multi-family in solid, path-of-progress neighborhoods in metro Detroit, and also get some larger SFH's in the more expensive market where we live and do rent-by-the-room/co-living.

My guess solely looking at your numbers is that it's an older/distressed property which means you have to account for more costs in capex. 2nd thought being it's not in the best of neighborhood then you'd have to take into consideration lower quality tenants/ neighbors and maybe increase expected vacancy and late payments.

It easy for people to get up on their crystal palace podium but the moment it comes knocking on your door or in your neighborhood peoples opinions change drastically. 

My solely-owned LLC owns a 10-unit townhome-style apartment building in TN.

Much bigger buyer pool and particularily is in a single family neighborhood with mostly owner occupants, appeals to owners. 

None of these communities will be changing to residential neighborhoods, although a couple do have residential 'sides' that full time residents live in and can not be rented short term.Two of the big communities that you will have some issues with self managing are Reunion and Margaritaville.

The home doesn’t burn but the surrounding neighborhoods and town does, severely decreasing the value of our home3.

Start by networking with local investors, identifying target neighborhoods, running numbers on potential deals, and lining up financing so you're ready to act when the right opportunity comes up!

What you can't do remote is get a sense for the neighborhood and asset quality.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.