Integrity 1560 Plan

Richland, MI 49083

$291,900D-

3 bd · 2.5 ba · 1,576 sqft · Built — · SingleFamily · Active · 601 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,427/mo
• Mortgage (P&I): −$1,601
• Tax + insurance: −$509
• HOA: −$0
• Vac / Maint / Mgmt: −$510
• Net cashflow: $-192/mo
• Annual: $-2,304/yr
• Cap rate: 5.54%
• Cash-on-cash: -2.70%
• DSCR: 0.88
• 1% rule: 0.80%
• Cash to close: $85,464

Investor read

• This is a 3-bed/2.5-bath single-family listed at $292k. Condition is rated excellent.
• At list price, monthly cash flow is $-192 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $277k (5.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $243k (16.9% below list).
• It's been on market 601 days — a 12% lower offer ($257k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $243k (16.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#222 in MI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment A; Watch: amenities F, commute F, health & safety F.
• Gull Lake Community Schools (suburban): math 40% / reading 59% proficiency, ranked #93 of 540 in MI (top 17%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: Thomas M Ryan Intermediate School (math 42% / reading 60%, grade C-, #362 of 1,397 statewide, top 26%, 655 students, 32% FRL); Gull Lake Middle School (math 39% / reading 57%, grade C-, #138 of 493 statewide, top 28%, 691 students, 28% FRL); Gull Lake High School (math 42% / reading 67%, grade C-, #109 of 713 statewide, top 17%, 850 students, 25% FRL).
• Market conditions: 196 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals lingering (median 36d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 57% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 339 units permitted in Kalamazoo County in 2024 (22 in 5+ unit buildings).
• Kalamazoo County population projected at +18% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 5.5% vs local median 3.3% in Richland — 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.

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 601 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
• 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?
• 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.
• 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.