There are a number of the traditional Chicago bungalows in the area that dont appear to need extensive rehab. 

I just didn't feel comfortable in the city, but I agree that there is a tone of potential. 

To do this I am going to need to sell one of our rental houses in order to have cash for down payment. 

You're probably going to need to look at a conventional loan.Best of luck

Is is common for the lender to need to see invoices and receipts every step of the way?

My goal is not to have to need a resume then.I began striving to reach my goal when I read Rich Dad Poor Dad by Robert Kiyosaki.

But to answer you questionI like Chicago as you can get some mass there and a ton to choose from and you can buy value add which your going to need to ultimately get to your super high return that you must have.Frankly those with this kind of cash I just don't see going to in to these types of assets as they are management intense and the loss of capital is real.The bigger cash guys I see go for A quality assets and with that kind of cash you could buy a very nice 10 million plus properties that would give you years of income enjoyment while your sipping your fruity drinks in the tropics   :)

Expect to need 35% down and rates about 2% higher for Canadians.What I have done is seller financing instead.

We honestly have found that every house in this area has foundation issues, the trick is figuring out which ones are bad enough to need repairs and which ones area just annoyances.  

You are going to need to give more information than that.Whats the property?