I don't know your market, but I'd bet the $400-$800 rent range is a tough market for a newbie to manage rentals in because the tenant class could be challenging and because maintenance, capex, etc. may end up eating a lot (or all) of your cash flow since there isn't a whole lot of rent to cover those items.

However, even if you have done some or all of them, make sure you have a reputable and knowledgable lawyer on your team.

As an aside, RPM who is mentioned in the thread above does not have contractors for Detroit or all cities. 

Ideally I would like open an online savings account such as Barclays or Ally online saving account for this purpose.  

Was is from increased vacancy, increased concessions, decreased rent, or all of the above.  

If the leases are month to month agreements then it would be incredibly easy to not renew their leases (one-by-one like @Sam Shueh recommended or all at the same time), rehab the units, and get them leased at the higher market rents. 

Contractors are not typically good at design or all the little details typically done by the owner or project manager.It is very unique to find someone who is both a contractor and investor who understands the investment dollar and race against time plus the design abilities.

If you were addressing a different point then you should be more clear about your communication, because what you communicated originally describes something very different than what you are saying now.People love throwing around the "fraud" word or all to common "that's illegal" statement, and the truth is that they know nothing about the laws.Now I was sharing with you some basic guidelines of teaching and sharing with others, not because I am a lawyer, but because this forum is here to help people with accurate information.

Off your very first flip you might have enough to cover part or all of your bad debt.

The Parties acknowledge and agree that neither the Buyers nor the Sellers nor their respective Brokers/Agents have any agreements written or oral that will permit the Seller or the Seller’s family member to remain in the property as renters or regain ownership of said property at any time after the execution of the Short Sale transaction.