3814 Montgomery St · Detroit, MI 48206

$39,000

4 bd · 2.0 ba · 1,258 sqft · SingleFamily public records · 24 Days on market

Built 1915 5,663 sqft lot Est $52k · 24% under

---

Why this score? — see what drove the B+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• ARV discount +15.0/15.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Rent growth +3.8/5.0
• Livability +3.7/5.0
• Condition / age +2.5/5.0
• Schools +1.3/10.0
• Appreciation +0.0/10.0

Listing remarks

Attention investors, check out this latest offering from the Detroit Land Bank Authority. Welcome to an incredible investment opportunity in the Petoskey-Otsego neighborhood with 3 bedrooms, 1 bathroom, and over 1,400 sq. ft. of living space. Property requires a full renovation, offering investors a chance to restore a classic Detroit home. Spacious layout with original character still intact. Please note that the DLBA is entitled to a tax capture for the 5 tax years subsequent to transferring ownership of the property. The tax capture may be incompatible with tax abatements that are otherwise available to the selected purchaser. DLBA will review requests to waive its tax capture rights and

Key facts

• 5,663 sq ft lot
• Built 1915
• Listed 23 days

Property features AI

Exterior

• Utilities: Public water
• Home design: Residential property; 2-story structure; Built in 1915
• Construction: Aluminum construction; Basement foundation; Unfinished basement
• Exterior features: Aluminum exterior; Paved street access; Frontage of 20 feet

Interior

• Bedrooms: Bedroom 1: Second level, 11 x 10, wood flooring; Bedroom 2: Second level, 10 x 10; Bedroom 3: Second level, approx. 10 wide, wood flooring; Bedroom 4: Entry level, 10 x 10, wood flooring
• Flooring: Wood flooring in multiple rooms including bedrooms, dining room and entry-level bathroom; Concrete flooring in basement bathroom
• Bathrooms: 2 full bathrooms; Bathroom on entry level (approx. 7 x 4) with wood flooring; Basement bathroom (approx. 7 x 4) with concrete flooring
• Heating & cooling: Forced air heating; Natural gas heat/fuel
• Interior features: Cable/Internet available; Total of 7 rooms; Basement (unfinished)

What this means for you Summary

Snapshot

• This is a 4-bed/2.0-bath single-family listed at $39k.

Deal economics

• At list price, monthly cash flow is $853 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $39k).
• Recommended offer: $38k (1.5% below list) — sets the bar for market timing.
• Cap rate 32.5% vs local median 10.1% 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.

Location & tenants

• 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: schools F, 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.
• Market conditions: Rents rising fast (+5.2%/yr); 273 active listings in the ZIP; 32 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); 44% of comp listings sitting > 30 days — soft ceiling on asking rent; 2,639 units permitted in Wayne County in 2024 (1,216 in 5+ unit buildings).
• This rent runs 40% of the median local income ($45k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $270 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Wayne County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 5.2% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• It's been on market 24 days — a 2% lower offer ($38k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: property tax is 3.0% of price; built in 1915 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $38,415 (1.5% below list)

Questions for the listing agent

1. Built in 1915 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. 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?
6. 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.
7. 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.
8. 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.

Investment metrics

• 1% rule: 3.80% ✓
• Cap rate: 32.54%
• Cash-on-cash: 93.73%
• DSCR: 5.17
• GRM: 2.2

CMA / ARV

• ARV (on-the-fly): $51,578
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
3299 Montgomery St	0.21mi	4/1.5	1,308 (+4%)	5mo	$79,000	$60	77
3286 Columbus St	0.23mi	3/1.0 (-1)	1,272 (+1%)	6mo	$13,600	$11	73
3283 Northwestern St	0.33mi	3/1.0 (-1)	1,259 (+0%)	7mo	$55,000	$44	69
3007 W Philadelphia St	0.41mi	4/1.5	1,334 (+6%)	5mo	$106,000	$79	65
3011 Virginia Park St	0.36mi	3/1.5 (-1)	1,360 (+8%)	2mo	$35,000	$26	61
2921 W Euclid St	0.46mi	3/2.0 (-1)	1,339 (+6%)	2mo	$20,000	$15	61
3005 Lothrop St	0.47mi	3/1.0 (-1)	1,200 (-5%)	2mo	$48,900	$41	59
4497 Vancouver St	0.29mi	3/1.5 (-1)	1,412 (+12%)	1mo	$150,000	$106	58
5327 Vancouver St	0.74mi	3/1.0 (-1)	1,274 (+1%)	5mo	$40,000	$31	50
5297 Vancouver St	0.71mi	4/1.5	1,363 (+8%)	4mo	$60,000	$44	48
3532 Moore Pl Pl	0.75mi	3/1.5 (-1)	1,181 (-6%)	1mo	$12,000	$10	47
6410 Scotten St	0.67mi	3/1.0 (-1)	1,354 (+8%)	3mo	$47,000	$35	45

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 5.2% rent growth · sell at horizon

5-year hold

• IRR: 97.2%
• Equity multiple: 5.71×
• Total profit: $51,415
• Equity at exit: $5,815

10-year hold

• IRR: —
• Equity multiple: 12.84×
• Total profit: $129,346
• Equity at exit: $3,372

Cash invested: $10,920 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 62 Landlord-Friendly
• State Michigan: 62 Landlord-Friendly · EVEN
• County: — inherits STATE
• City: — inherits STATE

7-day pay-or-quit; mixed climate; Detroit/AA have some protections.

Methodology + full state rankings →

ZIP-level market 48206

• Rents YoY: 5.2%
• Active inventory: 273
• Price-to-rent: 2.2×

Monthly cashflow live

• Estimated rent: $1,484 high
• Mortgage (P&I): −$205
• Tax from tax record: −$98 /mo · $1,181/yr
• Insurance: −$16
• HOA: −$0
• Vacancy / Maint / Mgmt: −$312
• Net cashflow: $853

Break-even live

Break-even rent $404

Max offer price $39,000

Occupancy floor 38%

Sensitivity live

Price	-10% $875	-5% $864	+0% $853	+5% $842	+10% $831
Rent	-10% $736	-5% $794	+0% $853	+5% $912	+10% $970
Rate	-1.0pp $873	-0.5pp $863	base $853	+0.5pp $843	+1.0pp $833

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $9,750
• Closing costs: $1,170
• Reserves months: —
• Total cash needed: —

Rent comps 32 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
4345 W Euclid St Unit 1 Detroit, MI	3.0	1.0	1300	$1,400	$1.08	25d	1	0.24mi
4345 W Euclid St Unit 2 Detroit, MI	3.0	1.0	1300	$1,450	$1.12	25d	1	0.24mi
3259 W Philadelphia St Detroit, MI	3.0	1.0	1293	$1,400	$1.08	18d	1	0.32mi
3757 Blaine St Detroit, MI	3.0	1.0	1169	$1,480	$1.27	18d	1	0.32mi
3786 Carter St Unit 2 Detroit, MI	3.0	1.0	1400	$1,100	$0.79	25d	1	0.40mi
4915 Maplewood St Detroit, MI	3.0	1.0	1324	$1,100	$0.83	18d	1	0.46mi
3220 Gladstone St Detroit, MI	3.0	1.0	1248	$1,200	$0.96	45d	1	0.53mi
2504 W Euclid St Unit 2504 Detroit, MI	3.0	1.0	1475	$1,650	$1.12	45d	1	0.71mi
2506 W Euclid St Detroit, MI	3.0	1.0	1475	$1,675	$1.14	45d	1	0.71mi
2504 W Euclid St Unit 2506 Detroit, MI	3.0	1.0	1475	$1,675	$1.14	45d	1	0.71mi
2531 Pingree St Unit 2 (FL 2) Detroit, MI	3.0	1.0	893	$1,100	$1.23	3d	1	0.73mi
3422 Edison St Detroit, MI	3.0	1.0	1300	$1,295	$1.00	18d	1	0.84mi
2463 Taylor St Detroit, MI	3.0	1.0	1350	$1,100	$0.81	45d	1	0.90mi
6144 16th St Detroit, MI	3.0	1.0	1284	$1,200	$0.93	45d	1	0.96mi
2302 Hazelwood St Unit 1 Detroit, MI	3.0	1.0	1550	$1,273	$0.82	25d	1	0.98mi
2047 Seward St Detroit, MI	3.0	1.0	1421	$1,523	$1.07	6d	1	0.99mi
4426 McGraw Ave Unit 1 Detroit, MI	3.0	1.0	1400	$1,200	$0.86	45d	1	1.03mi
2254 Taylor St Unit Taylor St unit Detroit, MI	3.0	1.0	1307	$1,550	$1.19	4d	1	1.05mi
3266 Calvert Ave Fl 2 Detroit, MI	3.0	1.0	1279	$1,300	$1.02	25d	1	1.16mi
3226 Calvert Ave Detroit, MI	3.0	1.0	1100	$1,200	$1.09	13d	1	1.17mi
3224 Calvert St Detroit, MI	3.0	1.0	1150	$1,150	$1.00	45d	1	1.17mi
2925 Calvert St Detroit, MI	3.0	1.0	1400	$1,300	$0.93	18d	1	1.19mi
2727 Calvert Ave Unit 1 Detroit, MI	3.0	1.5	1350	$1,200	$0.89	45d	1	1.22mi
2653 Calvert Ave Unit 1 Detroit, MI	3.0	1.0	1305	$1,200	$0.92	45d	1	1.25mi
3031 Lawrence St Detroit, MI	4.0	1.0	1700	$1,600	$0.94	18d	1	1.28mi
7640 Woodrow Wilson St Unit 1 Detroit, MI	3.0	1.5	1095	$1,400	$1.28	45d	1	1.29mi
6183 Hecla St Detroit, MI	3.0	1.0	1100	$1,700	$1.55	25d	1	1.31mi
2634 Lawrence St Detroit, MI	3.0	1.5	1388	$1,600	$1.15	3d	1	1.39mi
3322 Webb St Unit 1 Detroit, MI	3.0	1.0	1656	$1,350	$0.82	45d	1	1.40mi
3322 Webb St Unit 2 Detroit, MI	3.0	1.0	1656	$1,350	$0.82	45d	1	1.40mi
3322 Webb St Detroit, MI	3.0	1.0	1600	$1,250	$0.78	18d	1	1.40mi
11704 Broadstreet Ave Detroit, MI	3.0	1.0	1200	$1,050	$0.88	45d	1	1.45mi

Listing history 15 events

1. 2026-06-21
   days on market $39,000 Active 24 DOM
2. 2026-06-18
   days on market $39,000 Active 21 DOM
3. 2026-06-17
   days on market $39,000 Active 20 DOM
4. 2026-06-15
   days on market $39,000 Active 18 DOM
5. 2026-06-13
   days on market $39,000 Active 16 DOM
6. 2026-06-13
   days on market $39,000 Active 15 DOM
7. 2026-06-09
   days on market $39,000 Active 12 DOM
8. 2026-06-08
   days on market $39,000 Active 11 DOM
9. 2026-06-07
   days on market $39,000 Active 10 DOM
10. 2026-06-04
    days on market $39,000 Active 7 DOM
11. 2026-06-03
    days on market $39,000 Active 6 DOM
12. 2026-06-02
    days on market $39,000 Active 5 DOM
13. 2026-06-01
    days on market $39,000 Active 4 DOM
14. 2026-05-31
    days on market $39,000 Active 3 DOM
15. 2026-05-23
    historical $39,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast MI · Partial reset (capped growth)

• Current annual tax: $1,181 · $98/mo
• Projected year-2 tax: $1,181 · $98/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 3/10 Moderate 7 d/yr ≥97°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 4/10 Moderate 4 unhealthy d/yr today · 6 by 30 yrs out

Taxation est. · year 1

• Rental income: $17,805
• − Mortgage interest: −$2,185
• − Property taxes: −$1,181
• − Insurance: −$195
• − Repairs & maintenance: −$1,424
• − Management: −$1,424
• − Depreciation: −$1,135
• Taxable income: $10,261
• Est. tax owed @ 24.0%: −$2,463
• After-tax cash flow: $7,773/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Detroit Public Schools Community District
• NCES district ID: 2601103
• Math proficiency: 10% ▼ -2.00%
• Reading proficiency: 24% ▲ 6.00%
• Median HH income: $25,815
• Composite: 13.06/100
• National rank: #9564
• State rank: #499 of 540 in MI

Livability — Detroit

• Score: 73/100
• State rank: #218
• US rank: #5427

Category grades

Amenities A+ Commute A+ Cost of living A+ Crime F Employment F Housing A+ Health & safety B- User ratings F

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Detroit, MI
• County: Wayne County · 1,562,939 people
• City population: 572,865
• Metro: Detroit-Warren-Dearborn, MI
• Population (ZIP): 15,227
• Household income: $45,046
• Rent vs Own: 46.4% rent · 53.6% own
• Severe rent burden: 646.0

Population outlook (Wayne County) Hauer SSP2

• Today (2025): 1,675,273 people
• By 2030: 1,620,300 · -3.3%
• By 2040: 1,502,341 · -10.3%
• By 2050: 1,384,039 · -17.4%
• By 2075: 1,124,592 · -32.9%
• By 2100: 881,193 · -47.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Black (81%)
• Race & ethnicity: Black 81% White 12% Two or more races 5% Hispanic / Latino 3%
• Common ancestry: Iranian 3% Romanian 1% Slovak 1%
• Foreign-born: 4% · Canada
• Languages at home: 94% English-only · Spanish 4% Other Indo-European 1%

Political lean MEDSL · Wayne

• 2024 margin: Strong D (+29.0) · D 62.7% · R 33.7% · Other 3.6%
• 2008→2024 swing: -20.5pp toward R · 2008: 49.5pp · 2024: 29.0pp
• All cycles: 2024: D+29.0 2020: D+38.1 2016: D+37.3 2012: D+46.9 2008: D+49.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -139.60%
• Current HPI: 130.9545
• Rent YoY: ▲ 5.20%
• Metro: Detroit-Warren-Dearborn, MI
• State GDP YoY: ▲ 1.37%
• F500 in state: 28

Industry mix (Fortune 500 HQ in MI)

Industry	F500 HQs	Revenue
▸Automotive Parts	3	$48B
▸Automotive	2	$372B
▸Chemicals	1	$45B
▸Automotive Retail	1	$29B
▸Healthcare / Medical Devices	1	$23B
▸Automotive Technology	1	$20B

Price history

1 event — show timeline

• 2026-05-23 Coming Soon $39,000 MiRealSource-MiMLS

Property tax history

+12.1%/yr

Latest (2025): $1,181 · -13.3% YoY. Source: county tax records.