They are offering a syndication fund for section 8 housing paying 9% dividends and 60% annual profit sharing of cash flowing properties in the portfolio. 

Rent is so crazy here young professionals are willing to pay 800 a month for a bedroom with shared bath.

Now you need to figure out how to find deals and pay for them.

Her sister has agreed to us paying out her portion of the equity and having us use this as a rental. 

Hi guys, so if i use my business credit cards with a liquidator to turn credit card into cash and i use that money to invest with, when i go to make payments to pay back my credit cards is that money i use to repay the cards taxable???

Matthew,Yes, you would want to use those funds and do a 1031 exchange to avoid paying taxes on the cash or (boot) from the sale of the home. 

What is it about Detroit that initially drew your attention and what about it has caused you to continue investing in the city?

Your monthly mortgage will be about 2,000, which won't pay the bills as a long term rental.

Negatives are that there is an additional cost for me and if the tenant doesn't pay the water bill, i would end up with a potentially large bill at some point. 

My understanding is that it is me paying out of pocket what the previous owner has put into the house.