1406 Reo Ave · Lansing, MI 48910

$55,000

2 bd · 1.0 ba · 864 sqft · SingleFamily public records · 4 Days on market

Built 1909 1,306 sqft lot $64/sqft · 43% below area Est $96k · 43% under

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Why this score? — see what drove the B+ 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 +30.0/30.0
• ARV discount +15.0/15.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Livability +4.0/5.0
• Rent growth +3.7/5.0
• Condition / age +2.5/5.0
• Schools +1.9/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

Two story, 2 bedroom 1 bath home located next to a vacant lot. This small subdivision has one entry on Island and one exit on Woodlawn. Covered front porch to set and enjoy. Back door through kitchen has a small deck. This home has had a previous rental license. Gravity furnace. Heating contractor says they last a long time if taken care of. This one was taken care of. Laundry hookup in basement. Easy to show.

Key facts

• Full basement
• 1,306 sq ft lot
• Built 1909

Tags

• GRAVITY-FED HEATING SYSTEM
• FULL BASEMENT

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $55k.

Deal economics

• At list price, monthly cash flow is $499 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $55k).
• Cap rate 17.2% vs local median 6.0% in Lansing — 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 79/100 on livability (#94 in MI, #2,182 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, cost of living A+; Watch: employment D, schools F, crime F.
• Lansing Public School District (urban): math 14% / reading 23% proficiency, ranked #650 of 760 in MI (top 86%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising fast (+4.7%/yr); 177 active listings in the ZIP; 37 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 59% of comp listings sitting > 30 days — soft ceiling on asking rent; 350 units permitted in Ingham County in 2024 (186 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $380 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Ingham County population projected at +11% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 4.7% rent growth), your $15k cash investment doubles in ~3 years — after that, you're playing with house money.

Negotiation context

• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• 2 sale attempts; this cycle's ask has dropped $15k (21%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Watch-outs: property tax is 2.8% of price; built in 1909 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $55,000

Questions for the listing agent

1. Built in 1909 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. 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?
6. 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.
7. 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.
8. 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: 2.16% ✓
• Cap rate: 17.17%
• Cash-on-cash: 38.86%
• DSCR: 2.73
• GRM: 3.9

CMA / ARV

• ARV (median comp): $95,701
• List price: $55,000
• Delta: -26.96%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1723 Osband Ave	0.40mi	3/1.5 (+1)	882 (+2%)	4mo	$145,000	$164	67
515 Jason Ct	0.43mi	3/1.0 (+1)	910 (+5%)	6mo	$27,500	$30	61
2305 Forest Ave	0.69mi	2/1.0	888 (+3%)	4mo	$142,200	$160	60
531 Torrance Ct	0.47mi	2/1.0	780 (-10%)	4mo	$80,000	$103	59
512 Woodrow Ave	0.63mi	2/1.0	912 (+6%)	5mo	$104,500	$115	57
1824 S Rundle Ave	0.59mi	3/1.0 (+1)	915 (+6%)	0mo	$176,000	$192	57
1703 Linval St	0.58mi	2/2.5	814 (-6%)	5mo	$117,000	$144	53
1424 Hess Ave	0.51mi	3/2.0 (+1)	912 (+6%)	7mo	$142,400	$156	52
1017 W Barnes Ave	0.66mi	2/1.0	762 (-12%)	3mo	$110,000	$144	47
900 W Mount Hope Ave	0.67mi	2/1.0	748 (-13%)	3mo	$100,000	$134	44
841 Baker St	0.70mi	3/1.0 (+1)	960 (+11%)	0mo	$57,000	$59	44
2104 S Rundle Ave	0.72mi	3/2.0 (+1)	939 (+9%)	1mo	$135,500	$144	42

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 · 4.71% rent growth · sell at horizon

5-year hold

• IRR: 37.2%
• Equity multiple: 2.62×
• Total profit: $24,984
• Equity at exit: $8,201

10-year hold

• IRR: 44.7%
• Equity multiple: 5.66×
• Total profit: $71,715
• Equity at exit: $4,755

Cash invested: $15,400 (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 48910

• Rents YoY: 4.7%
• Active inventory: 177
• Price-to-rent: 3.9×

Monthly cashflow live

• Estimated rent: $1,189 high
• Mortgage (P&I): −$288
• Tax from tax record: −$129 /mo · $1,547/yr
• Insurance: −$23
• HOA: −$0
• Vacancy / Maint / Mgmt: −$250
• Net cashflow: $499

Break-even live

Break-even rent $557

Max offer price $55,000

Occupancy floor 53%

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: $13,750
• Closing costs: $1,650
• Reserves months: —
• Total cash needed: —

Rent comps 37 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1828 Davis Ave Lansing, MI	2.0	1.0	700	$1,150	$1.64	44d	1	0.39mi
920 S Washington Ave Lansing, MI	1.0–2.0	1.0–2.0	900	$1,250	$1.39	14d	1	0.39mi
855 S Washington Ave Lansing, MI	1.0	1.0	576	$1,245	$2.16	21d	3	0.49mi
855 S Washington Ave Lansing, MI	1.0	1.0	576	$1,245	$2.16	44d	9	0.49mi
313 E Saint Joseph St Lansing, MI	2.0	1.0	475	$1,150	$2.42	14d	7	0.65mi
335 E Saint Joseph St Unit 6 Lansing, MI	2.0	1.0	700	$949	$1.36	44d	1	0.67mi
1913 Stirling Ave Unit 1 Lansing, MI	2.0	2.0	1100	$1,200	$1.09	44d	1	0.72mi
515 S Chestnut St Lansing, MI	1.0	1.0	646	$942	$1.46	14d	8	0.73mi
509 Cherry St Unit 2 Lansing, MI	1.0	1.0	550	$975	$1.77	21d	1	0.75mi
1424 S Pennsylvania Ave Lansing, MI	1.0	1.0	700	$915	$1.31	44d	1	0.79mi
420 S Walnut St Lansing, MI	1.0	1.0	525	$875	$1.67	44d	1	0.80mi
1420 S Pennsylvania Ave Lansing, MI	1.0	1.0	700	$750	$1.07	21d	3	0.80mi
401 S Washington Sq Unit 205 Lansing, MI	2.0	1.0	968	$1,355	$1.40	44d	1	0.81mi
401 S Washington Sq Unit 212 Lansing, MI	1.0	1.0	827	$1,330	$1.61	44d	1	0.81mi
805 Bement St Unit Hosmer 507 Lansing, MI	2.0	1.0	1120	$1,075	$0.96	44d	1	0.98mi
507 S Hosmer St Lansing, MI	2.0	1.0	1120	$1,075	$0.96	44d	1	0.99mi
401 E Willard Ave Unit 19 Lansing, MI	2.0	1.0	775	$1,000	$1.29	44d	1	1.00mi
1100 Malcolm X St Unit B Lansing, MI	2.0	1.0	979	$1,050	$1.07	14d	1	1.04mi
430 Dunlap St Lansing, MI	2.0	1.0	940	$1,450	$1.54	21d	1	1.10mi
1030 S Holmes St Lansing, MI	1.0	1.0–1.5	812	$1,595	$1.96	14d	11	1.11mi
1330 W Hillsdale St Lansing, MI	3.0	1.0	1008	$1,550	$1.54	44d	1	1.13mi
1223 Bensch St Lansing, MI	3.0	1.0	850	$1,200	$1.41	21d	1	1.15mi
1109 W Washtenaw St Unit 5 Lansing, MI	2.0	1.0	755	$795	$1.05	44d	1	1.15mi
3031 S Washington Ave Lansing, MI	1.0–2.0	1.0	725	$1,100	$1.52	44d	1	1.19mi
1815 Potomac Cir Lansing, MI	2.0	1.0	1002	$1,200	$1.20	14d	1	1.22mi
113 Pere Marquette Dr Lansing, MI	1.0–2.0	1.0–2.0	1065	$2,250	$2.11	14d	9	1.23mi
1016 E Greenlawn Ave Unit 3 Lansing, MI	2.0	1.0	750	$925	$1.23	14d	1	1.24mi
910 Dakin St Lansing, MI	3.0	1.0	908	$1,295	$1.43	44d	1	1.27mi
307 N Walnut St Unit 307 Lansing, MI	1.0	1.0	550	$1,100	$2.00	44d	1	1.28mi
915 Loa St Lansing, MI	2.0	1.0	674	$999	$1.48	44d	1	1.29mi
314 N Sycamore St Unit 1 Lansing, MI	1.0	1.0	800	$1,450	$1.81	44d	1	1.33mi
427 Seymour Ave Unit 102 Lansing, MI	1.0	1.0	540	$850	$1.57	21d	1	1.40mi
427 Seymour Ave Unit 205 Lansing, MI	1.0	1.0	570	$1,100	$1.93	44d	1	1.40mi
427 Seymour Ave Unit 315 Lansing, MI	2.0	1.0	550	$1,300	$2.36	21d	1	1.40mi
427 Seymour Ave Unit 315 Lansing, MI	2.0	1.0	550	$1,300	$2.36	44d	1	1.40mi
927 W Shiawassee St Unit 10 Lansing, MI	1.0	1.0	700	$845	$1.21	44d	1	1.45mi
524 N Walnut St Lansing, MI	2.0	1.0	1000	$1,150	$1.15	44d	1	1.49mi

Listing history 10 events

1. 2026-06-16
   statusdays on market $55,000 Pending 4 DOM
2. 2026-06-15
   days on market $55,000 Active 3 DOM
3. 2026-06-13
   remarks 598-char remark
4. 2026-06-13
   pricedays on marketlisting id $55,000 Active 1 DOM
5. 2026-06-02
   days on market $69,900 Active 230 DOM
6. 2026-06-01
   days on market $69,900 Active 229 DOM
7. 2026-05-31
   days on market $69,900 Active 228 DOM
8. 2026-05-30
   days on market $69,900 Active 227 DOM
9. 2025-10-15
   listed $69,900 Active 429-char remark

   Show marketing remark (414 chars)

   Two story, 2 bedroom 1 bath home located next to a vacant lot. This small subdivision has one entry on Island and one exit on Woodlawn. Covered front porch to set and enjoy. Back door through kitchen has a small deck. This home has had a previous rental license. Gravity furnace. Heating contractor says they last a long time if taken care of. This one was taken care of. Laundry hookup in basement. Easy to show.

10. 2025-10-15
    listed $69,900 Active 414-char remark

    Show marketing remark (414 chars)

    Two story, 2 bedroom 1 bath home located next to a vacant lot. This small subdivision has one entry on Island and one exit on Woodlawn. Covered front porch to set and enjoy. Back door through kitchen has a small deck. This home has had a previous rental license. Gravity furnace. Heating contractor says they last a long time if taken care of. This one was taken care of. Laundry hookup in basement. Easy to show.

ⓘ 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: $1,547 · $129/mo
• Projected year-2 tax: $1,547 · $129/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ 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 1/10 Low
• 🌡 Heat 3/10 Moderate 7 d/yr ≥96°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: $14,263
• − Mortgage interest: −$3,081
• − Property taxes: −$1,547
• − Insurance: −$275
• − Repairs & maintenance: −$1,141
• − Management: −$1,141
• − Depreciation: −$1,600
• Taxable income: $5,478
• Est. tax owed @ 24.0%: −$1,315
• After-tax cash flow: $4,670/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: Lansing Public School District
• NCES district ID: 2621150
• Math proficiency: 14% ▲ 1.00%
• Reading proficiency: 23% ▲ 3.00%
• Median HH income: $37,453
• Composite: 18.76/100
• National rank: #14002
• State rank: #650 of 760 in MI

Livability — Lansing

• Score: 79/100
• State rank: #94
• US rank: #2182

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Lansing, MI
• County: Ingham County · 237,052 people
• City population: 161,269
• Metro: Lansing-East Lansing, MI
• Population (ZIP): 32,800
• Household income: $54,712
• Rent vs Own: 41.6% rent · 58.4% own
• Severe rent burden: 1305.0

Population outlook (Ingham County) Hauer SSP2

• Today (2025): 300,362 people
• By 2030: 307,808 · +2.5%
• By 2040: 320,492 · +6.7%
• By 2050: 333,223 · +10.9%
• By 2075: 373,693 · +24.4%
• By 2100: 392,021 · +30.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.62)
• Race & ethnicity: White 58% Black 16% Hispanic / Latino 12% Two or more races 12% Asian 4% Native American 1%
• Hispanic origin (detail): Mexican 9% Cuban 2%
• Common ancestry: Romanian 5% Lithuanian 3% Slovak 2%
• Foreign-born: 9% · Canada, China, Vietnam
• Languages at home: 87% English-only · Spanish 6% Chinese 1% Other Indo-European 1%

Political lean MEDSL · Ingham

• 2024 margin: Strong D (+29.7) · D 63.9% · R 34.2% · Other 2.0%
• 2008→2024 swing: -3.6pp toward R · 2008: 33.3pp · 2024: 29.7pp
• All cycles: 2024: D+29.7 2020: D+32.2 2016: D+27.6 2012: D+27.9 2008: D+33.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -211.82%
• Current HPI: 196.8087
• Rent YoY: ▲ 4.71%
• Metro: Lansing-East Lansing, 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

+0.0% since first listed

2 events — show timeline

• 2025-10-15 Listed $69,900 REALCOMP
• 2025-10-15 Listed $69,900 Greater Lansing AoR

Property tax history

+3.3%/yr

Latest (2025): $1,547 · +2.9% YoY. Source: county tax records.