18 E Montgomery St · Hillsdale, MI 49242

$149,900

3 bd · 1.0 ba · 1,488 sqft · SingleFamily public records · 6 Days on market

Built 1946 0.33 ac lot

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Why this score? — see what drove the D grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +15.8/30.0
• ARV discount +7.5/15.0
• DSCR +4.9/10.0
• 1% rule +3.9/10.0
• Livability +3.8/5.0
• Schools +2.7/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Welcome to this charming 3-bedroom home situated on a spacious, tree-lined lot in the heart of Hillsdale! Offering a blend of character, functionality, and opportunity, this property features a large living room with a fireplace, an updated bathroom, spacious bedrooms. The second floor also includes a non-conforming (4) bedroom, providing additional space for guests, a home office, hobby room, or other flexible uses. Outside, you'll love the detached garage, screened-in gathering area, mature shade trees, and expansive yard that provides plenty of room to relax, entertain, or enjoy nature. The newer water heater offers added peace of mind, while the home's solid layout provides an excellent canvas for your personal updates and finishing touches. Conveniently located near schools, parks, shopping, and downtown amenities, this property is ideal for owner-occupants, investors, or anyone looking to to build equity.

Key facts

• Large living room
• Mature shade trees
• Updated bathroom

Tags

• TREE LINED LOT
• LARGE LIVING ROOM
• UPDATED BATHROOM
• DETACHED GARAGE
• SCREENED IN GATHERING AREA
• MATURE SHADE TREES

Property features AI

Exterior

• Parking: Detached garage (1 car)
• Utilities: Natural gas connected; Cable connected; Electric water heater
• Home design: Traditional style single-family home; Built in 1946; Living area approximately 1,488
• Construction: Log and wood siding construction; Composition roof; Slab foundation
• Exterior features: Corner lot; Wooded lot; Paved road access; Public water

Interior

• Kitchen: Microwave; Oven; Range; Refrigerator
• Bathrooms: 1 full bathroom
• Heating & cooling: Forced air heating
• Interior features: Garage door opener; Fireplace; Total of 8 rooms

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $150k.

Deal economics

• At list price, monthly cash flow is $68 ($821/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $133k (11.2% below list).
• Recommended offer: $133k (11.2% below list) — sets the bar for 1% rule.
• Cap rate 6.8% vs local median 2.7% in Hillsdale — 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.

Location & tenants

• Location reads 75/100 on livability (#158 in MI, #4,063 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D, commute F.
• Hillsdale Community Schools (town): math 26% / reading 38% proficiency, ranked #348 of 540 in MI (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Gier Elementary School (math 27% / reading 27%, grade F, #923 of 1,397 statewide, top 69%, 454 students, 60% FRL); Davis Middle School (math 25% / reading 41%, grade F, #306 of 493 statewide, top 63%, 359 students, 52% FRL); Hillsdale High School (math 32% / reading 52%, grade F, #264 of 713 statewide, top 41%, 400 students, 46% FRL) — zoned schools at 53% FRL track the district average.
• Market conditions: 80 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 72 units permitted in Hillsdale County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Hillsdale County population projected at -22% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• 10 sale attempts since 13y 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 $86k; list at $150k implies a 75% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1946 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $133,124 (11.2% below list)

Questions for the listing agent

1. Built in 1946 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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?
4. 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.
5. 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.
6. 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.

Investment metrics

• 1% rule: 0.89% ✗
• Cap rate: 6.84%
• Cash-on-cash: 1.96%
• DSCR: 1.09
• GRM: 9.4

CMA / ARV

• ARV (on-the-fly): $394,320
• Comps found: 2

Show comp detail 2 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
372 Hillsdale St	0.12mi	4/2.0 (+1)	1,545 (+4%)	13mo	$185,000	$120	68
389 Hillsdale St	0.13mi	3/2.0	1,344 (-10%)	8mo	$356,250	$265	67

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -13.2%
• Equity multiple: 0.52×
• Total profit: $-19,946
• Equity at exit: $22,351

10-year hold

• IRR: -4.3%
• Equity multiple: 0.72×
• Total profit: $-11,809
• Equity at exit: $12,961

Cash invested: $41,972 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 62 Landlord-Friendly
• State Michigan: 62 Landlord-Friendly · EVEN
• County: — inherits STATE
• City: — inherits STATE

7-day pay-or-quit; mixed climate; Detroit/AA have some protections.

Methodology + full state rankings →

ZIP-level market 49242

• Home prices YoY: -31.2%
• Active inventory: 80
• Price-to-rent: 9.4×

Monthly cashflow live

• Estimated rent: $1,331 medium
• Mortgage (P&I): −$786
• Tax from tax record: −$135 /mo · $1,617/yr
• Insurance: −$62
• HOA: −$0
• Vacancy / Maint / Mgmt: −$280
• Net cashflow: $68

Break-even live

Break-even rent $1,245

Max offer price $149,900

Occupancy floor 90%

Sensitivity live

Price	-10% $153	-5% $111	+0% $68	+5% $26	+10% $-16
Rent	-10% $-37	-5% $16	+0% $68	+5% $121	+10% $174
Rate	-1.0pp $144	-0.5pp $107	base $68	+0.5pp $30	+1.0pp $-10

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $37,475
• Closing costs: $4,497
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
34 Marion St Hillsdale, MI	3.0	1.0–1.5	950	$1,200	$1.26	45d	4	1.21mi
8 S Manning St Hillsdale, MI	1.0–2.0	1.0	850	$1,031	$1.21	45d	1	1.41mi

Listing history 5 events

1. 2026-06-12
   statusdays on market $149,900 Pending 6 DOM
2. 2026-06-09
   days on market $149,900 Active 5 DOM
3. 2026-06-08
   days on market $149,900 Active 4 DOM
4. 2026-06-07
   remarks 699-char remark
5. 2026-06-07
   listed $149,900 Active 3 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast MI · Partial reset (capped growth)

• Current annual tax: $1,617 · $135/mo
• Projected year-2 tax: $1,963 · $164/mo
• Expected delta: +$346/yr (+$29/mo · 21.4%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 2/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥97°F today · 16 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $15,975
• − Mortgage interest: −$8,397
• − Property taxes: −$1,617
• − Insurance: −$750
• − Repairs & maintenance: −$1,278
• − Management: −$1,278
• − Depreciation: −$4,361
• Taxable loss: −$1,705
• Est. tax savings @ 24.0%: +$409
• After-tax cash flow: $1,230/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Hillsdale Community Schools
• NCES district ID: 2618390
• Math proficiency: 26% ▼ -7.00%
• Reading proficiency: 38% ▼ -5.00%
• Median HH income: $38,652
• Composite: 26.73/100
• National rank: #7143
• State rank: #348 of 540 in MI

Livability — Hillsdale

• Score: 75/100
• State rank: #158
• US rank: #4063

Category grades

Amenities C+ Commute F Cost of living A+ Crime B+ Employment D Housing A+ Health & safety A+ User ratings F

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Hillsdale, MI
• County: Hillsdale County · 14,750 people
• City population: 14,750
• Metro: Hillsdale, MI
• Population (ZIP): 14,750
• Household income: $61,029
• Rent vs Own: 26.8% rent · 73.2% own
• Severe rent burden: 349.0

Population outlook (Hillsdale County) Hauer SSP2

• Today (2025): 43,704 people
• By 2030: 41,996 · -3.9%
• By 2040: 38,019 · -13.0%
• By 2050: 34,095 · -22.0%
• By 2075: 25,897 · -40.7%
• By 2100: 18,746 · -57.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (89%)
• Race & ethnicity: White 89% Two or more races 5% Hispanic / Latino 4% Black 1%
• Common ancestry: Romanian 4% Slovak 3% Lithuanian 2%
• Foreign-born: 2% · Canada, Jamaica
• Languages at home: 98% English-only · Other Indo-European 1%

Political lean MEDSL · Hillsdale

• 2024 margin: Solid R (+51.4) · D 23.7% · R 75.1% · Other 1.2%
• 2008→2024 swing: -39.4pp toward R · 2008: -12.0pp · 2024: -51.4pp
• All cycles: 2024: R+51.4 2020: R+47.9 2016: R+46.8 2012: R+24.2 2008: R+12.0

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -105.04%
• Current HPI: 231.5167
• Rent YoY: —
• Metro: Hillsdale, MI
• State GDP YoY: ▲ 1.37%
• F500 in state: 28

Industry mix (Fortune 500 HQ in MI)

Industry	F500 HQs	Revenue
▸Automotive Parts	3	$48B
▸Automotive	2	$372B
▸Chemicals	1	$45B
▸Automotive Retail	1	$29B
▸Healthcare / Medical Devices	1	$23B
▸Automotive Technology	1	$20B

Price history

+284.4% since first listed

22 events — show timeline

• 2026-06-04 Listed $149,900 SW Michigan MLS
• 2026-06-04 Listed $149,900 REALCOMP
• 2026-06-04 Listed $149,900 MiRealSource-MiMLS
• 2020-05-27 Sold (Public Records) $85,500 Public Records
• 2018-05-11 Sold (Public Records) $70,000 Public Records
• 2018-05-11 Sold (MLS) $70,000 MiRealSource-MiMLS
• 2018-05-11 Sold (MLS) $70,000 SW Michigan MLS
• 2018-05-11 Sold (MLS) $70,000 REALCOMP
• 2018-04-27 Contingent — MiRealSource-MiMLS
• 2018-04-26 Contingent — SW Michigan MLS
• 2018-04-09 Listed $79,900 MiRealSource-MiMLS
• 2018-04-09 Listed $79,900 MiRealSource-MiMLS
• 2018-04-09 Listed $79,900 SW Michigan MLS
• 2018-04-09 Listed $79,900 REALCOMP
• 2013-11-18 Sold (MLS) $40,000 MiRealSource-MiMLS
• 2013-11-18 Sold (MLS) $40,000 REALCOMP
• 2013-11-18 Sold (MLS) $40,000 SW Michigan MLS
• 2013-11-15 Listing Removed — MiRealSource-MiMLS
• 2013-09-09 Listed $49,000 MiRealSource-MiMLS
• 2013-09-09 Listed $49,000 REALCOMP
• 2013-09-09 Listed $49,000 SW Michigan MLS
• 2008-06-05 Sold (Public Records) $39,000 Public Records

Property tax history

+5.8%/yr

Latest (2025): $1,617 · -15.0% YoY. Source: county tax records.