I bought it sight unseen as I viewed it as a small development project, did my due diligence up front and didn’t really care about the state of the house.There were 5 offers on the property to which I ended up knowing a few of the other bidders.

I know a common equity investment would be subject to UBIT but since there is no back end upside I wasn't sure if the pref equity would be viewed as a loan?

Per https://www.ci.richmond.ca.us/DocumentCenter/View/61839/MNOI...Fair return defined Kenneth Barr method (MNOI) which the Courts have agreed with:“as the price controls are not confiscatory; i.e, they do not deprive investorsof a fair return on their investment.”  

you can browse the forums and view other threads, i found these for example:Newbie New Build for STR Questionsbuild from scratch STR in my home vacation market?

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@Patrick Goswitz  from different point of view.

I was really interested in a 1/1 on top of a hill (had a bit of a view) but was several miles north of Hochatown, so was talked out of it by my realtor.

So basically, for a B minus area, for a 3 bedroom brick home you will spend 110k for a rental that brings in $1,400 per month and in a class D neighborhood Section 8 you will be all in for the same cashflow at $80k.If you extend you view to "Metro" Detroit you have more opportunities in Cities like Warren, Hazel Park, Taylor, Romulus, Eastpointe, et al,. 

Set up 1-2 hour time periods on Saturday/Sunday through messaging of when your dad/can call him the showing agent can be at the property so prospective tenants can view the unit (will save him a lot of back and forth).

Unfortunately, this leads investors to view return of capital as the most critical deal metric and deals that may have better fundamentals which are indicative of long term success are dismissed because 100% return of capital cannot be achieved.