For example, they won't need to cover your personal belongings (furniture, clothing, etc.) because you won't be living there.A landlord policy should cost about the same as a homeowner's policy; it just changes what is covered.

Turbo tax will prorate your depreciation for you when you input the purchase date but you need to input the land value (1/6 your PP in my example) and what % the rental is of the dwelling. 

No need to invest out of state, when you are in one of the best places in the world to invest in real estate. 

How much experience must your borrower have?

If not, I most definitely would reach out to the tenant, introduce myself and ask if they are going to be out by the 31st or the 1st, I would communicate  to the tenant as if I know they were told they are expected to leave, otherwise you may find they "do not know" they need to leave even if they actually know they need to leave....In the case they claim they are not aware they need to leave, you would need to follow the laws in the state you purchased the property, usually you can find that info on the states judicial branch or speak with a landlord tenant attorney. 

LOL   That is exactly what I would expect from the Detroit City Government.If you go there, they are likely going to say you first need a license from a different office on the other side of town and when you drive there, they will say you need an appointment with them, but they only have appointments the third Thursday of each month.  

I'm a Michigan native looking to move back to start my portfolio but I haven't really spent too much time in Detroit and would love to hear people's experiences.

Despite the guru fed “misinformation” about all these under market price deals, they are actually very rare and require (1) the investor recognizing value that the seller and the rest of the market misses or (2) a seller with a need for an immediate sale and a buyer with the CASH immediately available to conclude a very quick closing usually forgoing inspections, financing, and other contingencies. 

Owner will need an Annual Owner Statement from your acconting system, reflecting those gross collected amounts and all expenses, including your management fees.

I believe you had a much better-than-average result here.