The buyer chooses the contractor and the lender vets the contractor: looks for the above stated information and also looks into whether there has been complaints against the lender.I was also told that a 3rd party vendor inspects the property and inspects the work to make certain the work is done properly before monies are distributed for the work completed.

@Alexander BibovskiWe use Buildium for a lot of different functions, including as a sort of CRM.  

Hi @William InfantesI have done them for 30 years, and with proper structuring, and payment on time, I have yet to have a loan called due.See http://www.biggerpockets.com/search?

Lien or deed, tax sales are county functions. 

Lack of proper maintenance2.

I personally would steer clear of Detroit proper but any outlying areas are going to cost you more than $25,000.

If I understand the quantification properly - we're looking at maybe a D+ property in a C neighborhood:The building is from 1925, The roof is leaking in spots, but by no means is it falling down. 

Remember - the rent has to cover EVERYTHING: PITI and management plus your profit after you establish a cash reserve.This sounds to me like a case of what can happen when folks go out and try to do something BEFORE they learn how to do it.I'd look elsewhere unless you're willing to put forth the effort (and likely some "investment") to learn how to do short sales properly.

Hard Money may not likely be a proper avenue for my situation.  

You could reverse the cap rate to find the a proper price.