15523 Mack Ave

Detroit, MI 48224

$1,000,000B-

320 bd · 400.0 ba · 14,592 sqft · Built 1929 · MultiFamily · Active · 17 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $33,167/mo
• Mortgage (P&I): −$5,244
• Tax + insurance: −$1,667
• HOA: −$0
• Vac / Maint / Mgmt: −$6,965
• Net cashflow: $19,291/mo
• Annual: $231,494/yr
• Cap rate: 29.44%
• Cash-on-cash: 82.68%
• DSCR: 4.68
• 1% rule: 3.32%
• Cash to close: $280,000

Investor read

• This is a 20 × 16-bed/20.0-bath units multifamily listed at $1.00M. Condition is rated fair.
• At list price, monthly cash flow is $19k ($231k/yr) — positive. Per door: $965/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($33k rent vs $1.00M).
• It's been on market 17 days — a 2% lower offer ($985k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $985k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $30k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#218 in MI) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, cost of living A+; Watch: crime F, employment F.
• Detroit Public Schools Community District (urban): math 10% / reading 24% proficiency, ranked #499 of 540 in MI (top 92%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 90% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: J E Clark Preparatory Academy (math 5% / reading 5%, grade F, #1,325 of 1,397 statewide, top 99%, 260 students, 95% FRL); East English Village Preparatory Academy At Finney (math 10% / reading 10%, grade F, #659 of 713 statewide, top 97%, 697 students, 85% FRL) — zoned schools at 90% FRL track the district average.
• Watch-outs: built in 1929 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents flat; 492 active listings in the ZIP; lower-income renter base — watch delinquency; 2,639 units permitted in Wayne County in 2024 (1,216 in 5+ unit buildings).
• Wayne County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts 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.
• At projected returns (-3.0% appreciation + 0.7% rent growth), your $280k cash investment doubles in ~2 years — after that, you're playing with house money.
• Cap rate 29.4% vs local median 10.0% in Detroit — 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 $33,167/mo this rent would consume 887% of the median local household income ($45k/yr) (locally 2515% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1929 — 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Exterior brick facade — The brick facade is visibly worn and in need of repair.
• Major: Interior finishes — The interior appears to be in a state of disrepair, with exposed structural elements and incomplete finishes.
• Major: Roof — The roof appears to be in a state of disrepair, with visible wear and tear.
• Major: Flooring — The flooring appears to be in a state of disrepair, with visible wear and tear.
• Major: HVAC and mechanical systems — The HVAC and mechanical systems appear to be in a state of disrepair, with visible wear and tear.
• Major: Landscaping — The landscaping appears to be in a state of disrepair, with overgrown vegetation and a lack of maintenance.