12515 Fargo St NE

Spencer, MI 49326

$359,900B-

4 bd · 2.0 ba · 1,931 sqft · Built 2005 · Condo · Pending · 14 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,000/mo
• Mortgage (P&I): −$1,887
• Tax + insurance: −$295
• HOA: −$0
• Vac / Maint / Mgmt: −$840
• Net cashflow: $978/mo
• Annual: $11,738/yr
• Cap rate: 9.55%
• Cash-on-cash: 11.65%
• DSCR: 1.52
• 1% rule: 1.11%
• Cash to close: $100,772

Investor read

• This is a 4-bed/2.0-bath condo listed at $360k.
• At list price, monthly cash flow is $978 ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $360k).
• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $3k of equity ($2k loan paydown + $337 appreciation (0.1% local appreciation)).
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Greenville Public Schools (town): math 35% / reading 52% proficiency, ranked #167 of 540 in MI (top 31%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lincoln Heights Elem School (math 35% / reading 45%, grade F, #596 of 1,397 statewide, top 43%, 432 students, 52% FRL); Greenville Middle School (math 28% / reading 49%, grade F, #228 of 493 statewide, top 47%, 799 students, 63% FRL); Greenville Senior High School (math 35% / reading 60%, grade D, #185 of 713 statewide, top 26%, 1,106 students, 57% FRL).
• Market conditions: 28 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 2,253 units permitted in Kent County in 2024 (969 in 5+ unit buildings).
• Kent County population projected at +22% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 16 sale attempts since 28y ago 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.
• Current owner paid $270k; 33% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (0.1% appreciation + 3.0% rent growth), your $101k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.