6373 Manistee St

Frederic, MI 49733

$159,900D

2 bd · 1.0 ba · 1,176 sqft · Built — · SingleFamily · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,016/mo
• Mortgage (P&I): −$839
• Tax + insurance: −$95
• HOA: −$0
• Vac / Maint / Mgmt: −$213
• Net cashflow: $-131/mo
• Annual: $-1,574/yr
• Cap rate: 5.31%
• Cash-on-cash: -3.52%
• DSCR: 0.84
• 1% rule: 0.64%
• Cash to close: $44,772

Investor read

• This is a 2-bed/1.0-bath single-family listed at $160k.
• At list price, monthly cash flow is $-131 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $137k (14.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $102k (36.5% below list).
• It's been on market 20 days — a 2% lower offer ($158k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $102k (36.5% below list) — sets the bar for 1% rule.
• In year one you build about $17k of equity ($1k loan paydown + $16k appreciation (10.0% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Crawford Ausable Schools (town): math 43% / reading 50% proficiency, ranked #140 of 540 in MI (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Grayling Elementary School (math 42% / reading 42%, grade F, #547 of 1,397 statewide, top 41%, 638 students, 66% FRL); Grayling Middle School (math 48% / reading 52%, grade C, #117 of 493 statewide, top 25%, 461 students, 57% FRL); Grayling High School (math 47% / reading 72%, grade C+, #80 of 713 statewide, top 12%, 452 students, 50% FRL).
• Market conditions: 37 active listings in the ZIP; 75 units permitted in Crawford County in 2024 (32 in 5+ unit buildings).
• Crawford County population projected at -22% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• By year 3, paydown + projected appreciation supports a ~$43k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.