Some people recommend filing in WY, other recommend land trusts, etc. 

Also, I want to have an additional income stream to my pay. 

You acknowledged that you were scared of the Detroit market, therefore as the old saying goes "Trust your gut" and there is your answer.

because of the issues you guys are facing. now maybe these folks are paying cash to build as well ?

He mentioned they’ve had trouble paying on time lately.2) This place rents for $1,500 now, could be as high as $1,650 fixed up more but the total mortgage payment with taxes and insurance would be about $1,500-1,600.

Start working right away and you could have a well-paying job, be debt free, and own a couple investments within four years. 

Then why would you consider paying $1.3 million for this property - $70,000 over value?

Folks are fighting to pay $700k for a duplex here with market rents of $3,500.

He is the one paying the rent though.

I rent it out as a vacation home to others too... this helps pay the bills.