8041 Bridge Lake Road Rd

Village of Clarkston, MI 48348

$199,000D-

1 bd · 1.0 ba · 934 sqft · Built 1960 · SingleFamily · Pending · 112 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,337/mo
• Mortgage (P&I): −$1,044
• Tax + insurance: −$222
• HOA: −$0
• Vac / Maint / Mgmt: −$281
• Net cashflow: $-209/mo
• Annual: $-2,505/yr
• Cap rate: 5.03%
• Cash-on-cash: -4.50%
• DSCR: 0.80
• 1% rule: 0.67%
• Cash to close: $55,720

Investor read

• This is a 1-bed/1.0-bath single-family listed at $199k.
• At list price, monthly cash flow is $-209 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $162k (18.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $134k (32.8% below list).
• It's been on market 112 days — a 9% lower offer ($181k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $134k (32.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#98 in MI, #2,255 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F.
• Clarkston Community School District (suburban): math 48% / reading 58% proficiency, ranked #69 of 540 in MI (top 13%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 16% free/reduced lunch — higher-income household profile.
• Zoned schools: Springfield Plains Elem School (math 57% / reading 67%, grade B, #160 of 1,397 statewide, top 13%, 505 students, 17% FRL); Sashabaw Middle School (math 42% / reading 52%, grade D+, #143 of 493 statewide, top 30%, 984 students, 24% FRL); Clarkston High School (math 51% / reading 69%, grade C+, #73 of 713 statewide, top 11%, 1,575 students, 17% FRL) — zoned schools at 20% FRL track the district average.
• Market conditions: 153 active listings in the ZIP; 1 comparable units currently listed for rent nearby; high-income renter base; 2,614 units permitted in Oakland County in 2024 (721 in 5+ unit buildings).
• Oakland County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts; this cycle's ask has dropped $26k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 5.0% vs local median 3.3% in Village of Clarkston — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• This rent is only 12% of the median local income ($129k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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?
• It's been on market 112 days. Have you received any prior offers? Is the seller open to a 33% concession, seller financing, or rate buy-down credit?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.