492 Algene St

Lake Orion, MI 48362

$338,000F

3 bd · 1.0 ba · 1,037 sqft · Built 1950 · SingleFamily · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,695/mo
• Mortgage (P&I): −$1,773
• Tax + insurance: −$420
• HOA: −$0
• Vac / Maint / Mgmt: −$566
• Net cashflow: $-63/mo
• Annual: $-762/yr
• Cap rate: 6.07%
• Cash-on-cash: -0.81%
• DSCR: 0.96
• 1% rule: 0.80%
• Cash to close: $94,640

Investor read

• This is a 3-bed/1.0-bath single-family listed at $338k.
• At list price, monthly cash flow is $-63 ($-762/yr) — negative.
• To cash-flow at today's rent, offer at most $327k (3.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $270k (20.3% below list).
• It's been on market 16 days — a 2% lower offer ($333k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $270k (20.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#77 in MI, #1,679 nationally) — a professional / high-income tenant draw. Strengths: employment A+, housing A+, cost of living A; Watch: amenities F, commute F.
• Lake Orion Community Schools (suburban): math 49% / reading 64% proficiency, ranked #45 of 540 in MI (top 8%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 16% free/reduced lunch — higher-income household profile.
• Zoned schools: Orion Oaks Elementary School (math 39% / reading 59%, grade D, #425 of 1,397 statewide, top 31%, 515 students, 32% FRL); Oakview Middle School (math 50% / reading 64%, grade B, #66 of 493 statewide, top 14%, 406 students, 35% FRL); Lake Orion Community High School (math 54% / reading 75%, grade B-, #46 of 713 statewide, top 7%, 2,174 students, 24% FRL).
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 90 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 16d on market — plan ~3-4 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.
• 11 sale attempts since 27y 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.
• Cap rate 6.1% vs local median 4.4% in Lake Orion — 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 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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?
• 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 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.