1565 M-63 #60

Benton, MI 49022

$33,000D-

2 bd · 1.0 ba · 728 sqft · Built 1979 · Manufactured · Active · 33 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $886/mo
• Mortgage (P&I): −$173
• Tax + insurance: −$55
• HOA: −$560
• Vac / Maint / Mgmt: −$186
• Net cashflow: $-89/mo
• Annual: $-1,062/yr
• Cap rate: 3.07%
• Cash-on-cash: -11.49%
• DSCR: 0.49
• 1% rule: 2.68%
• Cash to close: $9,240

Investor read

• This is a 2-bed/1.0-bath manufactured listed at $33k. Condition is rated fair.
• At list price, monthly cash flow is $-89 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $20k (38.8% below list).
• Meets the 1% rule at list price ($886 rent vs $33k).
• It's been on market 33 days — a 3% lower offer ($32k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $20k (38.8% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $228 of loan paydown is wiped out by about $990 of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Benton Harbor Area Schools (urban): math 4% / reading 7% proficiency, ranked #732 of 760 in MI (top 96%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 89% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Fair Plain Middle School (math 0% / reading 4%, grade F, #493 of 493 statewide, top 100%, 288 students, 97% FRL); Fair Plain Middle School (math 0% / reading 4%, grade F, #493 of 493 statewide, top 100%, 288 students, 97% FRL); Benton Harbor High School (math 5% / reading 5%, grade F, #704 of 713 statewide, top 100%, 495 students, 97% FRL).
• Watch-outs: HOA is 63% of rent.
• Market conditions: 270 active listings in the ZIP; 1 comparable units currently listed for rent nearby; lower-income renter base — watch delinquency; 397 units permitted in Berrien County in 2024 (40 in 5+ unit buildings).
• Berrien County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 5 sale attempts 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.

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 33 days. Have you received any prior offers? Is the seller open to a 39% 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?
• Built in 1979 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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: kitchen cabinets — dated and could be replaced
• Minor: bathroom fixtures — basic and could be upgraded
• Moderate: exterior paint — moderate wear and could be refreshed