3714 Black Creek Dr

Hudsonville, MI 49426

$399,900F

2 bd · 2.0 ba · 1,020 sqft · Built 1991 · SingleFamily · Pending · 17 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,911/mo
• Mortgage (P&I): −$2,097
• Tax + insurance: −$366
• HOA: −$0
• Vac / Maint / Mgmt: −$401
• Net cashflow: $-954/mo
• Annual: $-11,444/yr
• Cap rate: 3.43%
• Cash-on-cash: -10.22%
• DSCR: 0.55
• 1% rule: 0.48%
• Cash to close: $111,972

Investor read

• This is a 2-bed/2.0-bath single-family listed at $400k.
• At list price, monthly cash flow is $-954 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $231k (42.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $191k (52.2% below list).
• It's been on market 17 days — a 2% lower offer ($394k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $191k (52.2% 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 $12k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#79 in MI, #1,690 nationally) — a professional / high-income tenant draw. Strengths: cost of living A+, housing A+, health & safety A-; Watch: amenities F, commute F.
• Hudsonville Public School District (suburban): math 55% / reading 70% proficiency, ranked #32 of 540 in MI (top 6%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Alward Elementary School (math 59% / reading 73%, grade B+, #127 of 1,397 statewide, top 9%, 497 students, 13% FRL); Baldwin Street Middle School (math 48% / reading 73%, grade B+, #51 of 493 statewide, top 11%, 844 students, 13% FRL); Hudsonville High School (math 52% / reading 68%, grade C+, #73 of 713 statewide, top 11%, 1,513 students, 12% FRL) — zoned schools at 13% FRL track the district average.
• Market conditions: 215 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals leasing fast (median 5d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 1,237 units permitted in Ottawa County in 2024 (443 in 5+ unit buildings).
• Ottawa County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 8 sale attempts since 35y 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.
• Current owner paid $102k; list at $400k implies a 292% gain — meaningful room to come down on a strong offer.

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.
• 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.
• 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.