43470 Algonquin Dr

Novi, MI 48375

$439,900F

4 bd · 3.5 ba · 2,618 sqft · Built 1994 · Condo · Active · 59 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,220/mo
• Mortgage (P&I): −$2,307
• Tax + insurance: −$513
• HOA: −$380
• Vac / Maint / Mgmt: −$676
• Net cashflow: $-656/mo
• Annual: $-7,872/yr
• Cap rate: 4.50%
• Cash-on-cash: -6.39%
• DSCR: 0.72
• 1% rule: 0.73%
• Cash to close: $123,172

Investor read

• This is a 4-bed/3.5-bath condo listed at $440k.
• At list price, monthly cash flow is $-656 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $324k (26.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $322k (26.8% below list).
• It's been on market 59 days — a 3% lower offer ($427k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $322k (26.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#20 in MI, #377 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: commute F.
• Northville Public Schools (suburban): math 68% / reading 75% proficiency, ranked #4 of 540 in MI (top 1%) — strong family-tenant draw, lease renewals of 3-5y typical; only 4% free/reduced lunch — higher-income household profile.
• Zoned schools: Amerman Elementary School (math 89% / reading 87%, grade A+, #7 of 1,397 statewide, top 0%, 554 students, 5% FRL); Hillside Middle School (math 66% / reading 70%, grade A-, #30 of 493 statewide, top 6%, 1,022 students, 5% FRL); Northville High School (math 68% / reading 86%, grade A-, #11 of 713 statewide, top 2%, 2,499 students, 7% FRL) — zoned schools at 5% FRL track the district average.
• Market conditions: Rents rising (+1.7%/yr); 143 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• 6 sale attempts since 30y ago; this cycle's ask has dropped $35k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $100k; list at $440k implies a 340% gain — meaningful room to come down on a strong offer.
• Cap rate 4.5% vs local median 2.7% in Novi — 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 runs 34% of the median local income ($113k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 59 days. Have you received any prior offers? Is the seller open to a 27% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.