My gut says Pigtown higher potential longer run but more risk.

It depends almost entirely on appreciation and is a much higher risk for investors.

Your new business will come with the liability risk of the real estate flip attached, among other complications.If the corporation flips the house, then the gains will be taxable to the corporation. 

How should I approach, prepare and present my deal so a RE fund will carry them in their list of portfolios for their investors? 

Besides carrying a gun, what would be the weapon of choice to have for the coming dog?

The person putting up the 100k is bearing a lot of risk and that deserves attention.

New developments typically yield a better rate of return due to the higher risk. 

@Greg CallanWould not do it.If it's your first deal, there are probably a lot of other variables that's missing and your ability to comp is probably going to be way too optimistic.If you knew the market and have done a few deals there and know that you'd get some sort of appreciation or that $850 comp would actually work out or that you can somehow get it to $1050...then it might be OK.But I'd underwrite it at $750 and 60-70% expenses.A 900 - 2149 - 268 would be a more conservative estimate.Depends on your risk profile and how confident you're gonna be able to be right on the dot with your first go at underwriting a deal.

Is the risk of a home fire too great?

@Wayne Brooks I am a gambler wayne, but i take calculated risks.