It’s a good idea to work with a qualified intermediary and a tax advisor to ensure everything is structured properly and you’re clear on any tax implications.

The only situation that I think it would make sense for you to start investing right now would be if you are not investing the full $200,000 and are looking to take some money off the board and put it into a safer investment.

While flips don’t usually qualify for 1031 exchanges, holding a property as a rental first might open this option.

If anything, when you accept rentals in the higher-end neighborhoods, the rent rate exceeds the voucher limit, meaning the resident has to have their own income in order to qualify.

But I think if I can get enough people on board it could work.

I have remodeled several hundred places and the ones made with particle board look good but don't last. 

I see people without capital no experience or capital being taught to “help” desperate homeowners by tying up their property in a contract they have no way to successfully close without finding someone to pay more; costing the homeowner behind on their mortgage payments to lose valuable time that can easily lead to foreclosure; I see a program taught to students to take over a property ‘subject to”, leaving the seller unable to qualify for further mortgage financing, responsible for a loan secured by a property he no longer owns, and all held together by someone with 0 experience, limited or no capital, and no liability.  

My only experiences with Detroit area are through friends that purchased low priced homes there years ago also I am not qualified for advice on that front, but do have SFR, turnkey, and commercial experience and think those could be great options for you.

Some costs MAY qualify as startup costs if the rental rises to a qualifying trade or business level under 195 as well.

They have no cash to qualify for a rental or even pay for the move.