1005 Sharps Rd

Fennville, MI 49450

$103,000D-

3 bd · 1.0 ba · 924 sqft · Built 1978 · Manufactured · Pending · 25 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $846/mo
• Mortgage (P&I): −$540
• Tax + insurance: −$172
• HOA: −$0
• Vac / Maint / Mgmt: −$178
• Net cashflow: $-44/mo
• Annual: $-526/yr
• Cap rate: 5.78%
• Cash-on-cash: -1.82%
• DSCR: 0.92
• 1% rule: 0.82%
• Cash to close: $28,840

Investor read

• This is a 3-bed/1.0-bath manufactured listed at $103k. Condition is rated poor.
• At list price, monthly cash flow is $-44 ($-526/yr) — negative.
• To cash-flow at today's rent, offer at most $97k (6.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $85k (17.9% below list).
• It's been on market 25 days — a 2% lower offer ($101k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $85k (17.9% below list) — sets the bar for 1% rule.
• In year one you build about $2k of equity ($712 loan paydown + $1k appreciation (1.0% local appreciation)).
• Location reads 68/100 on livability (#361 in MI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities F, commute F, health & safety F.
• Fennville Public Schools (rural): math 18% / reading 32% proficiency, ranked #422 of 540 in MI (top 78%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 64% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Fennville Elementary School (math 22% / reading 31%, grade F, #964 of 1,397 statewide, top 69%, 523 students, 78% FRL); Fennville Middle School (math 16% / reading 33%, grade F, #388 of 493 statewide, top 80%, 298 students, 77% FRL); Fennville Public High School (math 12% / reading 32%, grade F, #582 of 713 statewide, top 83%, 378 students, 73% FRL).
• Market conditions: 21 active listings in the ZIP; 419 units permitted in Allegan County in 2024 (0 in 5+ unit buildings).
• 3 sale attempts; this cycle's ask has dropped $6k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.

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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1978 — 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.
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Exterior siding — Damaged and weathered
• Major: Kitchen appliances — Old and worn
• Major: Windows — Old and may need replacement
• Major: HVAC system — No visible details