615 Jennie St

Eaton Rapids, MI 48827

$117,000D+

3 bd · 1.5 ba · 1,536 sqft · Built 1978 · SingleFamily · Pending · 106 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,065/mo
• Mortgage (P&I): −$614
• Tax + insurance: −$262
• HOA: −$0
• Vac / Maint / Mgmt: −$224
• Net cashflow: $-34/mo
• Annual: $-413/yr
• Cap rate: 6.62%
• Cash-on-cash: 1.17%
• DSCR: 1.05
• 1% rule: 0.91%
• Cash to close: $32,760

Investor read

• This is a 3-bed/1.5-bath single-family listed at $117k.
• At list price, monthly cash flow is $-34 ($-413/yr) — negative.
• To cash-flow at today's rent, offer at most $111k (5.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $106k (9.0% below list).
• It's been on market 106 days — a 9% lower offer ($106k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $106k (9.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $809 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#182 in MI, #4,624 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A; Watch: amenities F, commute F.
• Eaton Rapids Public Schools (town): math 22% / reading 42% proficiency, ranked #315 of 540 in MI (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Greyhound Intermediate School (math 15% / reading 37%, grade F, #967 of 1,397 statewide, top 70%, 382 students, 46% FRL); Eaton Rapids Middle School (math 21% / reading 40%, grade F, #333 of 493 statewide, top 68%, 453 students, 42% FRL); Eaton Rapids High School (math 42% / reading 67%, grade C-, #109 of 713 statewide, top 17%, 615 students, 39% FRL) — zoned schools at 42% FRL track the district average.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 111 active listings in the ZIP; 98 units permitted in Eaton County in 2024 (0 in 5+ unit buildings).
• Eaton County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 7 sale attempts since 14y ago; this cycle's ask has dropped $45k (28%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.6% vs local median 2.2% in Eaton Rapids — 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?
• It's been on market 106 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?