2764 Sunset Dr

Norvell, MI 49230

$57,900F

2 bd · 1.0 ba · 1,056 sqft · Built 1990 · Other · Active · 225 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,198/mo
• Mortgage (P&I): −$304
• Tax + insurance: −$38
• HOA: −$726
• Vac / Maint / Mgmt: −$251
• Net cashflow: $-122/mo
• Annual: $-1,464/yr
• Cap rate: 3.76%
• Cash-on-cash: -9.03%
• DSCR: 0.60
• 1% rule: 2.07%
• Cash to close: $16,212

Investor read

• This is a 2-bed/1.0-bath other listed at $58k.
• At list price, monthly cash flow is $-122 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $36k (37.2% below list).
• Meets the 1% rule at list price ($1k rent vs $58k).
• It's been on market 225 days — a 12% lower offer ($51k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $36k (37.2% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $400 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Columbia School District (town): math 30% / reading 51% proficiency, ranked #194 of 540 in MI (top 36%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Columbia Elementary School (323 students, 50% FRL); Columbia Central High School (math 30% / reading 55%, grade F, #263 of 713 statewide, top 37%, 654 students, 39% FRL).
• Watch-outs: HOA is 61% of rent.
• Market conditions: 141 active listings in the ZIP; 317 units permitted in Jackson County in 2024 (103 in 5+ unit buildings).
• Jackson County population projected at -13% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 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.

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?
• It's been on market 225 days. Have you received any prior offers? Is the seller open to a 37% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• This sits on a lake — are riparian / water-frontage rights deeded with the parcel? Any dock permits, shoreline easements, or HOA water-use restrictions?
• What's the documented flood / surge / shoreline-erosion history here (FEMA AND non-FEMA — e.g., storm surge, creek backup, septic-field saturation)?