1107 Odessa Dr

Holly, MI 48442

$229,000D

3 bd · 1.5 ba · 1,749 sqft · Built 1970 · SingleFamily · Pending · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,926/mo
• Mortgage (P&I): −$1,201
• Tax + insurance: −$486
• HOA: −$0
• Vac / Maint / Mgmt: −$404
• Net cashflow: $-165/mo
• Annual: $-1,986/yr
• Cap rate: 5.43%
• Cash-on-cash: -3.10%
• DSCR: 0.86
• 1% rule: 0.84%
• Cash to close: $64,120

Investor read

• This is a 3-bed/1.5-bath single-family listed at $229k.
• At list price, monthly cash flow is $-165 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $200k (12.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $193k (15.9% below list).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $193k (15.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#156 in MI, #3,930 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment D-.
• Holly Area School District (town): math 31% / reading 52% proficiency, ranked #165 of 540 in MI (top 31%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Patterson Elementary School (math 32% / reading 42%, grade F, #685 of 1,397 statewide, top 51%, 437 students, 57% FRL); Holly Middle School (math 25% / reading 54%, grade F, #215 of 493 statewide, top 45%, 663 students, 55% FRL); Holly High School (math 27% / reading 57%, grade F, #264 of 713 statewide, top 41%, 1,023 students, 40% FRL) — zoned schools average 51% FRL vs 36% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 158 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 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.
• 20 sale attempts since 10y ago 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.
• Cap rate 5.4% vs local median 3.5% in Holly — 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.

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?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.