21612 Bon Brae St

St. Clair Shores, MI 48081

$217,500F

3 bd · 2.5 ba · 986 sqft · Built 1959 · SingleFamily · Active · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,366/mo
• Mortgage (P&I): −$1,141
• Tax + insurance: −$498
• HOA: −$0
• Vac / Maint / Mgmt: −$287
• Net cashflow: $-559/mo
• Annual: $-6,710/yr
• Cap rate: 3.21%
• Cash-on-cash: -11.02%
• DSCR: 0.51
• 1% rule: 0.63%
• Cash to close: $60,900

Investor read

• This is a 3-bed/2.5-bath single-family listed at $218k.
• At list price, monthly cash flow is $-559 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $119k (45.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $137k (37.2% below list).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $119k (45.4% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Lakeview Public Schools (Macomb) (suburban): math 32% / reading 51% proficiency, ranked #180 of 540 in MI (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Ardmore Elementary School (math 47% / reading 52%, grade D, #382 of 1,397 statewide, top 30%, 381 students, 35% FRL); Jefferson Middle School (math 33% / reading 52%, grade D-, #183 of 493 statewide, top 37%, 956 students, 50% FRL); Lakeview High School (math 30% / reading 64%, grade D-, #187 of 713 statewide, top 29%, 1,465 students, 42% FRL).
• Watch-outs: built in 1959 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 118 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); 1,321 units permitted in Macomb County in 2024 (86 in 5+ unit buildings).
• Macomb County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 6 sale attempts since 2y ago 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.
• Cap rate 3.2% vs local median 4.0% in St. Clair Shores — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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?
• Built in 1959 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.