It almost certainly will.I'd encourage you to focus on more than just cash flow, because you most certainly have the income to "float" the difference until it does cashflow better!

This seems the easiest route if possible.Do I just go to work and use that money to pay someone else to come build it so I can have a better cost basis?

Short term loans typically do not come with a prepayment penalty and you would end up with the property rented at a better interest rate and could possibly pull out some equity.

With rates at 7%, investors need better pricing to make a deal work.

@William KuczmeraWhile I am not an accountant another option that probably makes better sense is to borrow against your 401k instead. 

With that information you will be in a better position to know the current value and potential profit. 

I did think about Detroit since I heard it's been getting better. 

I recommend you find a CPA who also has personal real estate experience so that they can better serve your needs.

As someone who owned class B rentals in 2012-2016 in slightly better markets like Birmingham, Atlanta, Indianapolis, I would say be careful of this as you will get shocked by difficult tenants.

In my opinion, it isn't a safe environment to do Subject To in and it is better to choose places like Nevada, Arizona, Texas, and the midwest.