So depending on what your investment goals are and what type of properties (Class A through C/D) and where in the city you want to buy, that can directly impact the level of stability one can find within the market here. 

I have found that the profit margins are very low in this model if the house is in a C/D neighborhood because you are limited to the amount of rent you can charge for each room.

Please stop asking us for "the best" zip codes to invest in.Detroit has around 183 Residential Neighborhoods - wouldn't it be nice if "some property mangagement company" Classified them all as A, B, C, or D on an interactive map that real estate investors could use to make better decisions?

You are correct in your assumption that it will impact how low they can go on the down payment, though, b/c commissions will need to be paid out of closing costs. 

.: Quote from @Allan C.: Two things to consider: factoring in risk and opportunity cost. 

Please stop asking us for "the best" zip codes to invest in.Detroit has around 183 Residential Neighborhoods - wouldn't it be nice if "some proprety mangagement company" Classified them all as A, B, C, or D on an interactive map that real estate investors could use to make better decisions?

If you want more B / C class properties take your pick.

Some reasons you'd need to sub your tax returns: if you have a schedule C (self employemnt) or a schedule E (rental income). 

build it instead of buying it. especially in the 5-50 range you are going to get garbage that's 80-120 years old in c neighborhoods. i can find land in almost any zip code and make the numbers work in columbus. or partner on a project locally. just my 2 cents but build to rent is much stronger right now in my opinion in columbus than buying existing assets 

C class or worse, you may be inheriting someone else's headaches.