877 Kirts Blvd

Troy, MI 48084 4857

$249,900C

2 bd · 2.5 ba · 1,850 sqft · Built 1973 · Condo · Coming Soon · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,637/mo
• Mortgage (P&I): −$1,311
• Tax + insurance: −$693
• HOA: −$350
• Vac / Maint / Mgmt: −$554
• Net cashflow: $-270/mo
• Annual: $-3,246/yr
• Cap rate: 7.21%
• Cash-on-cash: 3.26%
• DSCR: 1.14
• 1% rule: 1.06%
• Cash to close: $69,972

Investor read

• This is a 2-bed/2.5-bath condo listed at $250k.
• At list price, monthly cash flow is $-270 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $202k (19.1% below list).
• Meets the 1% rule at list price ($3k rent vs $250k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $202k (19.1% below list) — sets the bar for cash-flow.
• In year one you build about $9k of equity ($2k loan paydown + $7k appreciation (3.0% local appreciation)).
• Location reads 78/100 on livability (#113 in MI, #2,684 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A; Watch: health & safety D+, amenities F, commute F.
• Troy School District (urban): math 68% / reading 75% proficiency, ranked #8 of 540 in MI (top 2%) — strong family-tenant draw, lease renewals of 3-5y typical; only 10% free/reduced lunch — higher-income household profile.
• Zoned schools: Morse Elementary School (math 42% / reading 42%, grade F, #547 of 1,397 statewide, top 41%, 405 students, 42% FRL); Baker Middle School (math 65% / reading 83%, grade A, #17 of 493 statewide, top 3%, 626 students, 26% FRL); Troy High School (math 77% / reading 87%, grade A, #4 of 713 statewide, top 1%, 2,094 students, 13% FRL) — zoned schools average 27% FRL vs 10% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $460/mo.
• Market conditions: 1 active listings in the ZIP; 11 comparable units currently listed for rent nearby; rentals leasing fast (median 4d on market — plan ~1-2 weeks tenant-placement turnaround); 2,614 units permitted in Oakland County in 2024 (721 in 5+ unit buildings).
• Oakland County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $150k; list at $250k implies a 67% gain — meaningful room to come down on a strong offer.
• By year 4, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.2% vs local median 3.6% in Troy — 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?
• Built in 1973 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.