Bought a rental in Hazel Park, MI

[Fernando Domingo]

Hi BP,

I'm fairly new to investing and decided to buy a property in Hazel Park. I have a few things that I am looking for now.

1) First, does anyone have any recommended insurance companies/agents for rental properties in metro Detroit?

2) I understand that I have to get a Certificate of Occupancy and apply for a landlord license.  Will the inspection cover both the CoE and Landlord License?

3) Is there anything else that I will need before place tenants?

[Jennifer Streamer]

I have a few tips about Hazel Park.  I don't own anything in Hazel Park, but have investigated the possibility.  I moved on to other cities because of a couple of things.  The first is not a deal breaker, but it's something to be aware of.  Inspectors and the city are tough to work with.

Second, be aware that the non-homestead taxes are very high.  Here are the annual taxes on a 120k house in each of the following cities:

Hazel Park: $5627

Royal Oak: $3467

Madison Heights (Lamphere Schools): $3748

Oak Park (Berkley Schools): $4855

Finally, I discovered insurance is higher in Hazel Park.  

Basically, I realized that my monthly payment with a 30 year mortgage, tax and insurance was roughly the same if I bought a 160k property in Royal Oak or a 120k property in Hazel Park.  

Since the rent in Royal Oak is greater, I have a higher return on the 160k property in Royal Oak.  The down payment is more, naturally, so it may be possible to do better in Hazel park because you are able to buy more homes - especially if you're buying the lower cost homes.  Also, Hazel Park may have more potential for appreciation.  In my mind, it has a loong way to go.