I've not lost money on a RE deal but I've had a couple of pretty thin ones; if the market took a sharp dive, I'd have been underwater.

Your market once you get above $1600 ($4800/mo and $58K/yr) thins out greatly, and only flies in a few markets in Metro Detroit.

Sometimes these things are just petty, and sometimes they're structural (i.e. you have paper-thin walls without any insulation or sound barriers).

Investors are also in this bullseye with seller financing at prices pulled out of thin air (CFPB requires or it was in the original DF statue: an appraisal... )My business includes originating notes to occupants too, I'm in your boat.  

Thin topsoil over sand or rock (figuratively speaking) can show active growth but that growth won't last.What are the factors and indicators driving the Detroit market?

I'm in favor of tight local regulations to thin the herd.