4101 Lot 246 S Sheridan Rd

Venice, MI 48449

$29,500D

2 bd · 1.0 ba · 840 sqft · Built 1996 · SingleFamily · Active · 120 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $914/mo
• Mortgage (P&I): −$155
• Tax + insurance: −$49
• HOA: −$600
• Vac / Maint / Mgmt: −$192
• Net cashflow: $-81/mo
• Annual: $-978/yr
• Cap rate: 2.98%
• Cash-on-cash: -11.83%
• DSCR: 0.47
• 1% rule: 3.10%
• Cash to close: $8,260

Investor read

• This is a 2-bed/1.0-bath single-family listed at $30k. Condition is rated fair.
• At list price, monthly cash flow is $-81 ($-978/yr) — negative.
• To cash-flow at today's rent, offer at most $18k (40.0% below list).
• Meets the 1% rule at list price ($914 rent vs $30k).
• It's been on market 120 days — a 9% lower offer ($27k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $18k (40.0% below list) — sets the bar for cash-flow.
• In year one you build about $3k of equity ($204 loan paydown + $3k appreciation (10.0% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Durand Area Schools (rural): math 17% / reading 38% proficiency, ranked #395 of 540 in MI (top 73%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Robert Kerr School (math 17% / reading 37%, grade F, #923 of 1,397 statewide, top 69%, 348 students, 63% FRL); Durand Middle School (math 16% / reading 38%, grade F, #372 of 493 statewide, top 77%, 276 students, 55% FRL); Durand Area High School (math 24% / reading 44%, grade F, #372 of 713 statewide, top 56%, 425 students, 41% FRL).
• Watch-outs: HOA is 66% of rent.
• Market conditions: 17 active listings in the ZIP; 74 units permitted in Shiawassee County in 2024 (0 in 5+ unit buildings).
• Shiawassee County population projected at -25% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $3k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 120 days. Have you received any prior offers? Is the seller open to a 40% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Paint — The paint on the walls and cabinets appears slightly worn.
• Minor: Siding — The siding has some discoloration and wear, but no major damage.
• Minor: Flooring — The flooring in the kitchen and living areas appears to be laminate or vinyl, which may need replacement.
• Minor: HVAC — The HVAC system appears to be old and may need replacement.