Option 3- If they have qualified for FHA; counter the offer to see if they can qualify for low downpayment conventional loan

Your other option is to test it out and see if you can make it work. 

Cleveland almost seems like the best option because of the affordability and rental demand, but worries me due to the high property taxes and lack of population and economic growth.

A company adding more options to a plan instead of trying to Nickle and Dime me with upsells.

Here’s what you need to consider:1.Related-Party Restrictions•The IRS generally doesn’t allow 1031 exchanges when both the sale and purchase involve related parties, unless both properties are held for at least two years after the exchange.

Whether you want an Airbnb in a vacation spot you can use or a standard single-family home in an appreciating area, there are many options.

Your best/safest bet would be a regular lease combined with an option to purchase.

Great question - 20% down is the typical down payment for investment properties, regardless if it's a single family, duplex, tri or quad.We have a 15% down option for the same type of loan.

There are plenty of investment opportunities in the Detroit area as well which have the potential to offer immediate value, so I would weigh your options with care. 

The planning staff should be able to walk you through any options for zoning changes or variances if there's a way to make short-term rentals work in your case.