801 S Mill St

Clio, MI 48420

$440,000C+

63 bd · 49.0 ba · 3,327 sqft · Built — · MultiFamily · Active · 495 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,470/mo
• Mortgage (P&I): −$2,307
• Tax + insurance: −$733
• HOA: −$0
• Vac / Maint / Mgmt: −$1,149
• Net cashflow: $1,281/mo
• Annual: $15,367/yr
• Cap rate: 9.79%
• Cash-on-cash: 12.47%
• DSCR: 1.55
• 1% rule: 1.24%
• Cash to close: $123,200

Investor read

• This is a 7 × 1-bed/1-bath units multifamily listed at $440k.
• At list price, monthly cash flow is $1k ($15k/yr) — positive. Per door: $183/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $440k).
• It's been on market 495 days — a 12% lower offer ($387k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $387k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#332 in MI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A-, crime B+; Watch: schools D+, amenities F, commute F.
• Clio Area School District (suburban): math 27% / reading 44% proficiency, ranked #269 of 540 in MI (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 148 active listings in the ZIP; 419 units permitted in Genesee County in 2024 (68 in 5+ unit buildings).
• Genesee County population projected at -27% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 12 sale attempts since 31y ago; this cycle's ask is 62757% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $178k; list at $440k implies a 147% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $123k cash investment doubles in ~10 years — after that, you're playing with house money.
• Cap rate 9.8% vs local median 4.6% in Clio — 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

• It's been on market 495 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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?
• 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.