421 N Front St

Marquette, MI 49855

$525,000B-

30 bd · 25.0 ba · 4,258 sqft · Built 1912 · MultiFamily · Active · 412 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,681/mo
• Mortgage (P&I): −$2,753
• Tax + insurance: −$875
• HOA: −$0
• Vac / Maint / Mgmt: −$1,403
• Net cashflow: $1,650/mo
• Annual: $19,798/yr
• Cap rate: 10.06%
• Cash-on-cash: 13.47%
• DSCR: 1.60
• 1% rule: 1.27%
• Cash to close: $147,000

Investor read

• This is a 4×1bd/1.0ba + 1×2bd/1.0ba units multifamily listed at $525k. Condition is rated good.
• At list price, monthly cash flow is $2k ($20k/yr) — positive. Per door: $330/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $525k).
• It's been on market 412 days — a 12% lower offer ($462k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $462k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• Location reads 91/100 on livability (#5 in MI, #61 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: employment F.
• Marquette Area Public Schools (town): math 45% / reading 55% proficiency, ranked #106 of 540 in MI (top 20%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1912 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.3%/yr); 148 active listings in the ZIP; 91 units permitted in Marquette County in 2024 (0 in 5+ unit buildings).
• Marquette County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 8 sale attempts since 14y ago; this cycle's ask has dropped $44k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $365k; 44% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-3.0% appreciation + 4.3% rent growth), your $147k cash investment doubles in ~8 years — after that, you're playing with house money.
• Cap rate 10.1% vs local median 1.7% in Marquette — 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.
• At $6,681/mo this rent would consume 129% of the median local household income ($62k/yr) (locally 1714% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 412 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1912 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.