The car expense ate up most of his cash flow.  

If I am reading between the lines, your failure is lack of cash flow right now?

I am a first time out of state investor interested in buy my first rental property in Detroit that can cash flow after fixing and gain equity.

Around here, you'd probably usually cash flow better with a duplex-- but do the math for these particular deals and buy the property that will make you the most money.

A 24-month loan would be preferred so you can build up the last 12 months of cash flow for the property. 

Purchase price: $74,000 Cash invested: $30,000 Beautifully renovated 4-bedroom split-level home that features a new galley style kitchen with 42" soft close cabinets, stainless steel appliances, recessed lights, updated baths with modern vanities and fixtures, large living room that leads to separate dining room off kitchen, three spacious bedrooms on 2nd level with modern decor, large lower-level family room with ceramic tile flooring with well-placed laundry cove, and recently laid sod in front and rear of property.

After that, I do another cash-out refinance on the $120,000 property at 80% LTV to get $96,000 in cash.

The only negatives with an assumable loan is that they take longer to close, 60-90 days generally, and you would also need to come to the table with a little cash to cover the sellers equity (if any) and some other closing costs. 

Purchase price: $443,000 Cash invested: $60,000 I've included the mortgage, a 5% rental vacancy rate, and a 5% capex reserve.

There is plenty of opportunity in your area to buy properties that have low interest rates, that cash flow and get you to where you want to go for retirement.