Property Insurance is High in Detroit
Property insurance is expensive in Detroit. Not only is it expensive, but it can be hard to find altogether.

Believe it or not, there are quite a few insurance companies that flat-out won’t write a landlord policy in the city of Detroit.
And once you find someone that’s willing to insure your property, it’s going to be an arm and a leg.
Combine high insurance and property tax rates, and it gets even more crucial that you take every feasible step to buy in the right areas and properly protect your investment properties.
Just one act of vandalism can cost you thousands of dollars, and can really hurt your profit margins.
Insurance Rate Differences
In the city, insurance is going to run you about $1200 or so. It varies, considering the specific area in the city where the property sits.
In the suburbs, if I was to give an average, I’d say anywhere from $400 to $700 or so.
The ‘Burbs Aren’t Crime-Free
The suburbs certainly aren’t crime free.
The affordable parts of the suburbs tend to have the highest crime rates in the suburbs.
So don’t make the mistake of thinking you can just buy any property in any part of any suburb, and you’re going to be fine.
If the prices are lower in a certain part of a suburban city, there’s a reason.
My Take
Although it might sound like I’m slamming Detroit, I’m not.

At least it’s not my intention.
I simply consider myself a realist. I like to find the facts and make my decisions based on the facts, instead of perceptions.
Ultimately, I prefer the suburbs.
But if I find a good deal on a brick 3 bedroom house with a garage in a decent part of Detroit, I’ll strongly consider buying it as a rental property.
But don’t take my word for it. Everybody’s different.
Ultimately, when you’re weighing your options between investing in Detroit or the suburbs, here are some factors you should think long-and-hard about:
- What are the risks of investing? How do you plan on assessing those risks?
- What risks work best for your temperament and personality?
- How much money do you have to buy with? Do you have the means to buy in Detroit and the suburbs?
- What kind of returns are you looking for?
- If you’re going to be personally visiting the house (for maintenance, repairs, rent collection, etc.), what communities (in Detroit or suburbs) are the closest to you?
I’m sure there are some other considerations, but that’s just what came to mind.
What do “you” prefer? The city, the ‘burbs, both, or neither? Leave a comment!