From what I understand they are more lenient on this than some downpayment assistance programs are.

No activity though.A lot of people tell me that I should obtain my Real estate license to convert our rentals from passive to active income, but I don't exactly understand how that will help.I'm not looking to be an active real estate agent, but was thinking of obtaining my license to become an associate agent to fulfill the hour requirements and just for fun.Is this the right path?

The self-managed part is easy enough to understand, but it's the "need to live in it" part that I am maybe not understanding. 

The reason we ask is because tax sale can be risky and odd things can happen. 

Best is to work with a local realtor who understands the market best 

I was just curious as to what they were asking for and why and now that you've answered it I can understand what their process is.  

(Not easy to do without experience I know) but that's where education comes into play.Finding motivated sellers, being able to communicate effectively, problem solving, understanding of market values, and an understanding of rehab cost.

You should at all price points for the best care, but I understand not having two washer and dryers in a duplex that are both 1/1 and rent for 750.

Do this first and fully understand them.

Detroit is a very tricky marketplace and you want to ensure you understand the whole picture before purchasing.