My logic is They will tend to take care of the place better, complain less, and be overall better tenants because they know they won't find a better deal.  

My observations are that opendoor and Zillow are overly data driven and lack human logic and that can be exploited; 1).

Traditional logic would be to build a single family home on the new lot and sell it(Option 1), but the other day I saw cap rates on loopnet(no idea if that is a reliable site) for multifamily investing in LA and those numbers were actually more desirable(Option 2).My question is what is the better option?

If you use the “rent faster” logic on 2 rentals that delta is now $9,000 after 3 years.  

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.PM us if you’d like to discuss this logical approach in greater detailP.S. we've ranked all of Detroit's 183 Neighborhoods, so you can make more informed investment decisions.

@Alex Johnson Detroit-Michigan falls in the middle of the pack regarding "tenant-friendly".As you start to build your Core Four, NEVER believe what people tell you unless they can explain it logically or provide 3rd party proof.Here's 3rd party proof that Michigan is in the middle of the pack:)https://realwealth.com/learn/landlord-friendly-states/https://www.lawdistrict.com/articles/most-renter-friendly-us...

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.PM us if you’d like to discuss this logical approach in greater detail!

@Hamidou Keita Detroit is one of the best cities in the Midwest for investors, see chart below:Regarding, your first property, we've helped many OOS investors get started in Detroit with our logical approach to invest wisely and avoid critical mistakes.

I understand wanting to have equity in your property but with your skill set it seems logical to me that you would buy larger distressed properties and get sweat equity in the building.  

Now you have a buyer that has to think about the logic of that deal.