1408 Lee Pl · Detroit, MI 48206

$399,000

1247 bd · 841.0 ba · 19,686 sqft · MultiFamily · 79 Days on market

Built 1924 9,148 sqft lot $20/sqft · 17% above area Est $341k · 17% over

---

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 +15.0/30.0
• 1% rule +5.0/10.0
• DSCR +5.0/10.0
• Rent growth +3.8/5.0
• Livability +3.7/5.0
• Condition / age +2.5/5.0
• Schools +1.3/10.0
• ARV discount +0.0/15.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 29 units. confirmed

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks MLS

* OPPORTUNITY! * 29 unit apartment building (15 one bedroom units and 14 two bedroom units) in strategic corner location in the Herman Kiefer sub just south of Boston Edison. Huge opportunity to bring this apartment building back to its former glory! Bring all offers and act fast! Clear title with warranty deed and title insurance. Buyer to verify all information, taxes, room sizes, etc.

Key facts

• 9,148 sq ft lot
• Built 1924
• Listed 78 days

What this means for you Summary

Snapshot

• This is a 15×1bd/1ba + 14×2bd/1ba units multifamily listed at $399k.

Deal economics

• At list price, monthly cash flow is $22k ($263k/yr) — positive. Per door: $757/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($31k rent vs $399k).
• Recommended offer: $375k (6.0% below list) — sets the bar for market timing.
• Cap rate 72.3% vs local median 10.2% in Detroit — 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 73/100 on livability (#218 in MI) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, cost of living A+; Watch: schools F, crime F, employment F.
• Detroit Public Schools Community District (urban): math 10% / reading 24% proficiency, ranked #499 of 540 in MI (top 92%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 90% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising fast (+5.2%/yr); 271 active listings in the ZIP; 2,639 units permitted in Wayne County in 2024 (1,216 in 5+ unit buildings).
• At $31,276/mo this rent would consume 833% of the median local household income ($45k/yr) (locally 646% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• 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.
• Wayne County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 5.2% rent growth), your $112k cash investment doubles in ~1 year — after that, you're playing with house money.

Negotiation context

• It's been on market 79 days — a 6% lower offer ($375k) is reasonable based on typical stale-listing flexibility.
• 4 sale attempts since 6y ago; this cycle's ask has dropped $21k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Watch-outs: built in 1924 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $375,060 (6.0% below list)

Questions for the listing agent

1. It's been on market 79 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Built in 1924 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
5. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
6. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
7. Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
8. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
9. 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?
10. 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.
11. 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.
12. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 7.84% ✓
• Cap rate: 72.31%
• Cash-on-cash: 235.77%
• DSCR: 11.49
• GRM: 1.1

CMA / ARV

• ARV (median comp): $340,703
• List price: $399,000
• Delta: 17.11%
• Verdict: OVERPRICED
• Comps: 1 within 2.0 mi

Projected returns pro-forma

-3.0% appreciation · 5.2% rent growth · sell at horizon

5-year hold

• IRR: —
• Equity multiple: 13.57×
• Total profit: $1,404,613
• Equity at exit: $59,492

10-year hold

• IRR: —
• Equity multiple: 30.80×
• Total profit: $3,328,933
• Equity at exit: $34,498

Cash invested: $111,720 (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 48206

• Rents YoY: 5.2%
• Active inventory: 271
• Price-to-rent: 33.1×

Monthly cashflow live

• Estimated rent: $31,276 high
• Mortgage (P&I): −$2,092
• Tax est. 1.5%: −$499 /mo · $5,985/yr
• Insurance: −$166
• HOA: −$0
• Vacancy / Maint / Mgmt: −$6,568
• Net cashflow: $21,951

Break-even live

Break-even rent $3,490

Max offer price $399,000

Occupancy floor 25%

29-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 15× units	1	1	$15,075
▸ 14× units	2	1	$16,198
Total (29 units)			$31,276

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: $99,750
• Closing costs: $11,970
• Reserves months: —
• Total cash needed: —

Listing history 25 events

1. 2026-06-18
   days on market $399,000 Active 79 DOM
2. 2026-06-17
   days on market $399,000 Active 78 DOM
3. 2026-06-15
   days on market $399,000 Active 76 DOM
4. 2026-06-13
   days on market $399,000 Active 74 DOM
5. 2026-06-13
   days on market $399,000 Active 73 DOM
6. 2026-06-09
   days on market $399,000 Active 70 DOM
7. 2026-06-08
   days on market $399,000 Active 69 DOM
8. 2026-06-07
   days on market $399,000 Active 68 DOM
9. 2026-06-04
   days on market $399,000 Active 65 DOM
10. 2026-06-03
    days on market $399,000 Active 64 DOM
11. 2026-06-02
    days on market $399,000 Active 63 DOM
12. 2026-06-01
    days on market $399,000 Active 62 DOM
13. 2026-05-31
    days on market $399,000 Active 61 DOM
14. 2026-04-22
    price $399,000 391-char remark

    Show marketing remark (391 chars)

    * OPPORTUNITY! * 29 unit apartment building (15 one bedroom units and 14 two bedroom units) in strategic corner location in the Herman Kiefer sub just south of Boston Edison. Huge opportunity to bring this apartment building back to its former glory! Bring all offers and act fast! Clear title with warranty deed and title insurance. Buyer to verify all information, taxes, room sizes, etc.

15. 2026-04-21
    price $399,000 391-char remark

    Show marketing remark (391 chars)

    * OPPORTUNITY! * 29 unit apartment building (15 one bedroom units and 14 two bedroom units) in strategic corner location in the Herman Kiefer sub just south of Boston Edison. Huge opportunity to bring this apartment building back to its former glory! Bring all offers and act fast! Clear title with warranty deed and title insurance. Buyer to verify all information, taxes, room sizes, etc.

16. 2026-04-01
    listed $420,000 Active 391-char remark

    Show marketing remark (391 chars)

    * OPPORTUNITY! * 29 unit apartment building (15 one bedroom units and 14 two bedroom units) in strategic corner location in the Herman Kiefer sub just south of Boston Edison. Huge opportunity to bring this apartment building back to its former glory! Bring all offers and act fast! Clear title with warranty deed and title insurance. Buyer to verify all information, taxes, room sizes, etc.

17. 2026-04-01
    listed $420,000 Active 391-char remark

    Show marketing remark (391 chars)

    * OPPORTUNITY! * 29 unit apartment building (15 one bedroom units and 14 two bedroom units) in strategic corner location in the Herman Kiefer sub just south of Boston Edison. Huge opportunity to bring this apartment building back to its former glory! Bring all offers and act fast! Clear title with warranty deed and title insurance. Buyer to verify all information, taxes, room sizes, etc.

18. 2021-12-15
    historical
19. 2021-05-27
    status Pending
20. 2021-05-27
    status Pending
21. 2021-05-26
    historical
22. 2021-02-15
    price $600,000
23. 2021-02-14
    price $600,000
24. 2020-12-29
    listed $1,000,000 Active
25. 2020-12-29
    listed $1,000,000 Active

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

Climate risk First Street

• 🌊 Flood 3/10 Moderate FEMA zone X (unshaded) · 20% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 3/10 Moderate 7 d/yr ≥96°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 4/10 Moderate 4 unhealthy d/yr today · 6 by 30 yrs out

Taxation est. · year 1

• Rental income: $375,312
• − Mortgage interest: −$22,350
• − Property taxes: −$5,985
• − Insurance: −$1,995
• − Repairs & maintenance: −$30,025
• − Management: −$30,025
• − Depreciation: −$11,607
• Taxable income: $273,325
• Est. tax owed @ 24.0%: −$65,598
• After-tax cash flow: $197,810/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: Detroit Public Schools Community District
• NCES district ID: 2601103
• Math proficiency: 10% ▼ -2.00%
• Reading proficiency: 24% ▲ 6.00%
• Median HH income: $25,815
• Composite: 13.06/100
• National rank: #9564
• State rank: #499 of 540 in MI

Livability — Detroit

• Score: 73/100
• State rank: #218
• US rank: #5427

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Detroit, MI
• County: Wayne County · 1,562,939 people
• City population: 572,865
• Metro: Detroit-Warren-Dearborn, MI
• Population (ZIP): 15,227
• Household income: $45,046
• Rent vs Own: 46.4% rent · 53.6% own
• Severe rent burden: 646.0

Population outlook (Wayne County) Hauer SSP2

• Today (2025): 1,675,273 people
• By 2030: 1,620,300 · -3.3%
• By 2040: 1,502,341 · -10.3%
• By 2050: 1,384,039 · -17.4%
• By 2075: 1,124,592 · -32.9%
• By 2100: 881,193 · -47.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Black (81%)
• Race & ethnicity: Black 81% White 12% Two or more races 5% Hispanic / Latino 3%
• Common ancestry: Iranian 3% Romanian 1% Slovak 1%
• Foreign-born: 4% · Canada
• Languages at home: 94% English-only · Spanish 4% Other Indo-European 1%

Political lean MEDSL · Wayne

• 2024 margin: Strong D (+29.0) · D 62.7% · R 33.7% · Other 3.6%
• 2008→2024 swing: -20.5pp toward R · 2008: 49.5pp · 2024: 29.0pp
• All cycles: 2024: D+29.0 2020: D+38.1 2016: D+37.3 2012: D+46.9 2008: D+49.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -139.60%
• Current HPI: 130.9545
• Rent YoY: ▲ 5.20%
• Metro: Detroit-Warren-Dearborn, 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

-60.1% since first listed

12 events — show timeline

• 2026-04-22 Price Changed $399,000 MiRealSource-MiMLS
• 2026-04-21 Price Changed $399,000 REALCOMP
• 2026-04-01 Listed $420,000 REALCOMP
• 2026-04-01 Listed $420,000 MiRealSource-MiMLS
• 2021-12-15 Listing Removed — REALCOMP
• 2021-05-27 Pending — REALCOMP
• 2021-05-27 Pending — MiRealSource-MiMLS
• 2021-05-26 Listing Removed — MiRealSource-MiMLS
• 2021-02-15 Price Changed $600,000 MiRealSource-MiMLS
• 2021-02-14 Price Changed $600,000 REALCOMP
• 2020-12-29 Listed $1,000,000 MiRealSource-MiMLS
• 2020-12-29 Listed $1,000,000 REALCOMP