230 S State St #84

Zeeland, MI 49464

$167,900D

2 bd · 1.0 ba · 992 sqft · Built 1983 · Condo · Pending · 245 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,650/mo
• Mortgage (P&I): −$880
• Tax + insurance: −$187
• HOA: −$255
• Vac / Maint / Mgmt: −$347
• Net cashflow: $-19/mo
• Annual: $-230/yr
• Cap rate: 6.16%
• Cash-on-cash: -0.49%
• DSCR: 0.98
• 1% rule: 0.98%
• Cash to close: $47,012

Investor read

• This is a 2-bed/1.0-bath condo listed at $168k.
• At list price, monthly cash flow is $-19 ($-230/yr) — negative.
• To cash-flow at today's rent, offer at most $165k (2.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $165k (1.7% below list).
• It's been on market 245 days — a 12% lower offer ($148k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $148k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#66 in MI, #1,388 nationally) — a professional / high-income tenant draw. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Zeeland Public Schools (suburban): math 47% / reading 64% proficiency, ranked #66 of 540 in MI (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 19% free/reduced lunch — higher-income household profile.
• Zoned schools: Lincoln Elementary School (math 52% / reading 57%, grade C, #276 of 1,397 statewide, top 22%, 385 students, 23% FRL); Cityside Middle School (math 38% / reading 62%, grade C, #117 of 493 statewide, top 25%, 736 students, 24% FRL); Zeeland East High School (math 45% / reading 63%, grade C-, #123 of 713 statewide, top 17%, 973 students, 22% FRL) — zoned schools at 23% FRL track the district average.
• Market conditions: 151 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 5 sale attempts since 31y 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 $52k; list at $168k implies a 223% gain — meaningful room to come down on a strong offer.
• Cap rate 6.2% vs local median 1.9% in Zeeland — 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 245 days. Have you received any prior offers? Is the seller open to a 12% 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?
• 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 B-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?