. $200K sounds like a lot but your objective should be to use the $200K to show potential lenders (Private, Hard money or a bank) that you are low risk and can put your skin  (Cash) in the game. 

Again thanks for coming out here with some objective & constructive feedback.

If that is the objective, why would you want to put premium into the policy later?

Objective is to obtain properties via a conventional mortgage.

@Brandon Rush Find an agent in Detroit They should be able to help you out for free Considering their main objective is to build relationships with people who buy and sell property Any good agent would trade information and knowledge for a fruitful relationship And you won't find any better information considering some of the top agents in the city have done Hundreds if not thousands of deals And if seen all the pitfalls of buying property in Detroit that's not something That can be learned from a book or a seminar

If the property offers strong appreciation potential and aligns with your portfolio objectives, it might still be a worthwhile investment despite the initial negative cash flow.Exit Strategy: Think about your exit strategy.

It depends on what your objectives are.

Trying to obtain financing adds a layer of complexity to your objectives.

@Colin Kelly-RandThank you for your input and those numbers really help me to evaluate it objectively. 

However, my main objection is - just because something is legal and you can do it, doesn't mean it's the right thing to do.