Depending on your local market, you might be able to request enough down-payment to recover your money in the deal and/or higher APR than your note, thus realizing a little profit from the differential.

If your first OOS deal is a flop, you can still recover.  

Any money you have to pay out of pocket is a cost, that you have to recover before you start making a profit. 

Real estate prices will always recover due to inflation and holding three down cycle while tenant pays down any loan amount can be a good strategy but it depends on how long you want to hold and your overall goals.When a market tops there are signs.  

If they trash your unit you have judicial remedies even if you are required to return the security deposit but it will take time, money, and you will probably never recover damages from people who would do that type of thing.

Once capitalized, the cost can be recovered over time through depreciation after the property is placed in service as a rental.

Because Detroit is the last major city in process of recovering from crash in 2007/2008.

Lenders are less willing to loan to an LLC because they will not have any recourse against you to recover losses.

.$1234 = Rate extension lock fee$1357= Prepaids$477 = Appraisals$1095 = loan processing feeThey took $1792 from me in Dec 2017 for appraisals and initial fee and fooled me by giving 3.875 but in reality my rate turns out to be 4.25 and it will take me 7+ years to recover all this fee ($3024 + 1234 = around $4300).

It's just not a sound investment, as there are so many factors that could impact the market and it may take you 10+ years to recover from a correction.