If you have had long term tenants you have until July 22, 2024 to complete this and remain compliant.

How much more rent per month are that worth to a long term renter or midterm renter? 

I used to live there for a long time so I have a good understanding of the city.

This is called a Deed in Lieu Foreclosure or Deed in Lieu (DIL).As an option to avoid a long drawn-out foreclosure process (more painful for the lender than the borrower), your friend might be able to negotiate a deal with her lender to accept the property and wipe the slate clean.

Additionally, there could be tax consequences for you, possibly losing your long term capital gains tax treatment. 

Trust me, I've toyed with the idea.Vacant land where it makes sense to build large MFH stock might make sense, but chances are this isn't the land we're talking about here.The reality is most vacant land in Detroit is being repurposed for parks, the Joe Luis Greenway, solar farms, neighborhood gardens, etc.Beyond that, let's say you plan to hold long enough for SFH prices to get high enough where it does make sense to build. 

I'm actually excited about the prospect of finally owning some rentals, as I've wanted to do it for a long time but I let life get in the way. 

Thanks I would look to AirDNA for this - they have long had pretty good (guidance, not perfect) rentalizer solutions for projecting revenue, but have recently added good info on expected expenses and the property managers in the area (for at the very least coming up with expected operating / management costs) etc

If you more than one owner/member in a LLC, the LLC will file a 1065 partnership return, but all that does is spit out a K-1 (like a w2 or 1099) showing the profit / loss that you need to report on your 1040 form.If the LLC is single member, then you will basically continue file addition SchE for your long term rentals. 

They are buying at a 5 % cap rate with a fixed 5.7% loan amortized at 30yrs and first 2 yrs interest only, and they believe that they will sell at a 5% cap rate as well 5 long years from now.