The only issue we had with our last build (outside the normal issues associated with rehabs) was delayed time.

In terms of property depreciation, would it make sense to distribute across 30 years or is it possible to claim a one time depreciation?

Houses there twice expensive that in Detroit and I can afford them, but the risk to buy poorly fixed flipper is seems too high(I've seen couple of bad flipped houses for sale, that had some issues with permits after fixes).Cleveland seems similar to Detroit.

They want to buy the home from me but are running into issues with debt to income ratio, so not eligible for FHA. 

The list goes on and on.Some of the above is true for cash but the biggest issue is not being able to invest the cash into another investment.

Also, since this will be a rental property make sure you get your rental license issued right away.

There will always be listings for death, divorce and health issues.

As a section 8 landlord are we allowed to check the property once a month for issues?

Maybe, this would be considered a distribution of property from the LLC which would cause a taxable gain should the llc not have sufficient basis to take from.For #3 and for all of your questions really, there can be a lot of hidden complexities depending on your exact situation.

The potential risk of foundation movement and settling in the neighboring unit is high and they will be looking for compensation for any issues your underpinning job causes.