16029 Hiawatha Trl

Hillman, MI 49709

$19,900C-

2 bd · 1.0 ba · 672 sqft · Built — · SingleFamily · Active · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,128/mo
• Mortgage (P&I): −$104
• Tax + insurance: −$24
• HOA: −$0
• Vac / Maint / Mgmt: −$237
• Net cashflow: $763/mo
• Annual: $9,154/yr
• Cap rate: 52.29%
• Cash-on-cash: 164.29%
• DSCR: 8.31
• 1% rule: 5.67%
• Cash to close: $5,572

Investor read

• This is a 2-bed/1.0-bath single-family listed at $20k.
• At list price, monthly cash flow is $763 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $20k).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $2k of equity ($138 loan paydown + $2k appreciation (10.0% local appreciation)).
• Location reads 61/100 on livability (#575 in MI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A-; Watch: crime F, amenities F, commute F.
• Hillman Community Schools (rural): math 22% / reading 40% proficiency, ranked #361 of 540 in MI (top 67%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hillman Elementary School (math 17% / reading 27%, grade F, #1,035 of 1,397 statewide, top 77%, 187 students, 61% FRL); Hillman Community Jrsr High School (math 27% / reading 47%, grade F, #334 of 713 statewide, top 51%, 228 students, 50% FRL) — zoned schools at 55% FRL track the district average.
• Market conditions: 59 active listings in the ZIP.
• Montmorency County population projected at -38% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $14k; 37% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $6k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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?
• 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.
• 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.
• 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.