The city has almost completed their bankruptcy and willing to work with investors to bring Detroit back. 

From press releases, their (Quiznos) bankruptcy shouldn't affect the independents directly, but is a clear signal to be careful.

It is a big jump from a few residentials into commercial and your ability with construction may be the key to success here.....personally I would play to your strengths and increase rentals in newer, well maintained residentials......but it could be high risk, high reward as you mention, netting you millions over time or driving you into bankruptcy with an environmental hazard or demolition candidate....

A near bankruptcy left me with difficulties raising credit and I worry about closing on a rehab and not having the capital to complete the project. 

Another major risk is the borrower declaring bankruptcy.  

On time for appointmentBROUGHT NECESSARY ITEMS: Identification, application information, references, application fee, holding deposit...Filled out application completely and truthfullyAble to verify all of the necessary informationAble to pay full amount of rent and depositSufficient monthly income of 3 times the rental amountVerifiable income and employmentStable income or employment for a minimum of _____ monthsFinancial obligation of no more than _____% of incomeSatisfactory credit history (no bankruptcy)Provided credit referencesAt current address for a minimum of ______monthsGave proper notice to current landlordGave proper notice to previous landlordNo prior evictionsNo problems with previous landlordsDeposit fully returned (none withheld for damages)No complaints or police reports regarding disturbing the peace, etc.No significant violations of a previous rental agreementNo pets or is willing to sign a pet agreement and meets additional pet criteriaNon-smokersHas a Delinquency Rate less than 45% based on Credit Score Analysis performed by Tenant Background Search.Has a credit grade of B or credit score of 620 or higher per Tenant Background Search.

How do bankruptcy laws interfere with one's ability to foreclose on the property?

In the event of a mortgage default and an eventual bankruptcy.

Find bankruptcy houses or foreclosure homes.9.

This was a forced liquidation by the bank due to a bankruptcy.