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

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. 

I am on the board of CFRI, our local REIA and I know we have dozens of agents and investors that have their license if only to list and buy their own properties, but could recommend some to you. 

I’m excited to make this opportunity a reality but want to ensure that I bring the right partner on board to make it a win-win situation.Looking forward to hearing your thoughts and thank you in advance!

Again, other might feel differently here.b) Skin in the game: as a conservative investor, I understand that the dirty secret of industries that the waterfall compensation is in the line with me and incentivizes sponsors to take more risk.

If the ARV has risen to $260k and you’re renting it out for $2900/month, you can likely qualify for a higher loan amount.Here are some key points to consider:Loan-to-Value (LTV): A typical DSCR refinance will allow you to borrow up to 75-80% of the property’s ARV, so for a $260k property, you might qualify for a loan of $195k to $208k, which could help pull out most or all of your original investment.Debt Service Coverage Ratio (DSCR): Since you're renting for $2900/month, the loan payment will need to be covered comfortably by that rent.

Do you have an idea of the long-term rental amount, and would that be sufficient to meet the DSCR ratio needed to qualify for the loan?

I have not thought of using DTI instead of 3x the monthly rental amount in order to qualify an applicants income, but you made a great point regarding the priority that tenants might give a car payment.