260 E Garfield Lot 58 Ave

Coldwater, MI 49036

$56,000D-

3 bd · 2.0 ba · 1,056 sqft · Built 2019 · SingleFamily · Active · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,116/mo
• Mortgage (P&I): −$294
• Tax + insurance: −$93
• HOA: −$555
• Vac / Maint / Mgmt: −$234
• Net cashflow: $-61/mo
• Annual: $-726/yr
• Cap rate: 5.00%
• Cash-on-cash: -4.63%
• DSCR: 0.79
• 1% rule: 1.99%
• Cash to close: $15,680

Investor read

• This is a 3-bed/2.0-bath single-family listed at $56k.
• At list price, monthly cash flow is $-61 ($-726/yr) — negative.
• To cash-flow at today's rent, offer at most $47k (15.6% below list).
• Meets the 1% rule at list price ($1k rent vs $56k).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $47k (15.6% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $387 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#270 in MI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools C-, employment D+, amenities F.
• Coldwater Community Schools (town): math 26% / reading 37% proficiency, ranked #344 of 540 in MI (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: HOA is 50% of rent.
• Market conditions: 142 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 43 units permitted in Branch County in 2024 (0 in 5+ unit buildings).
• Branch County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 50 sale attempts since 30y ago; this cycle's ask is 213% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $19k; list at $56k implies a 196% gain — meaningful room to come down on a strong offer.
• Cap rate 5.0% vs local median 3.3% in Coldwater — 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?
• 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.
• 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.