The simple answer without getting into a deep dive of your specific tax situation is rental income will be taxed as passive and be subject to your ordinary income tax rates.

The cost of renovations was low as I only planned to fix a basement water issue, deep clean the home and swap a few fixtures.

Detroit is the "land of opportunity" for investors, so you might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:https://www.biggerpockets.com/...

You’re not too deep in the woods yet.

The landlord will have to approve any replacement tenant though.To get you up to speed on Detroit market, you might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:https://www.biggerpockets.com/...Some other cool stuff about Detoit1950’s Detroit: https://www.youtube.com/watch?

YES, we may be a little biased, but check out our blog here on BP comparing Detroit to other cities and Deep Dives on Metro Detroit cities & neighborhoods: https://www.biggerpockets.com/...Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

Our bill was $800,000 because we had to saw cut 1200 feet times 2, the pipe was buried 6 feet deep and we had to fill the entire excavation with slurry (concrete and sand mix) and then the facility had to pave the entire 1200 x 20 ft driveway with asphalt.

Metro Detroit offers many options for meeting the 1% Rule and relatively high ROI.Follow our "Deep Dive" series we're doing about Metro Detroit cities and City of Detroit Neighborhoods: https://www.biggerpockets.com/...The two most common mistakes we see investors make, over & over again, are:1) Not understanding and running their own ROI numbers2) Not having a clear understanding of the type of asset a property isIn our opinion, your best team member should be your Property Management Company (PMC).

I walk around construction sites quite a bit monitoring projects and I'm not going to be wearing a suit in 100 degree weather while doing that or walking through knee deep mud. 

@Alex FoxYou might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:https://www.biggerpockets.com/...Worse-case, use the info in them to better understand other markets.