Excellent deal for the minority partners (zero cash contribution) but a low ROI even accounting for tax savings of $24k/yr on a $500k cash investment.

To really understand all the critical considerations about the borrower you should review prior to funding, I suggest you check out my book Lend to Live: Earn Hassle-Free Passive Income in Real Estate with Private Money Lending published by BiggerPockets.com.

In addition there are a wide range of grants HUD supports in most cities to improve a property to rent to low income people.Perhaps the best decission in looking at section 8 and low income rentales are the larger assets of using the contract incentives and special financing programs that only exist to those who provide services and employ your tenant that you could benefit from.

I am from North Carolina but manage my current rental arbitrage properties in Medellin, Colombia & Rio de Janeiro Brazil.Now, I am looking to start buying real estate - likely in the Raleigh/Durham area of North Carolina where I am from, but also open to new markets.I stretched myself very thin on my arbitrage business, so my cash is very low. 

And really low price points you're going to be hard pressed to find good returns as well.

With low prices, high demand for rental properties, strong potential for appreciation, tax incentives, and renovation opportunities, investors should consider Detroit to diversify their real estate portfolio.

The cost for material would be $15-20 on the low end and that would leave only $$25-30 to go to the store buy a door knob come back and install.

That's a pitifully low CoCR to earn for all the hard work of being a landlord.

I’ve found list source to be low quality for MF at least in Missouri. 

We do exactly what @Bonnie Low is recommending and it works for us.