1882 Kenmore Dr

Grosse Pointe Woods, MI 48236

$289,000F

3 bd · 1.0 ba · 1,202 sqft · Built 1947 · SingleFamily · Pending · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,501/mo
• Mortgage (P&I): −$1,516
• Tax + insurance: −$641
• HOA: −$0
• Vac / Maint / Mgmt: −$315
• Net cashflow: $-970/mo
• Annual: $-11,640/yr
• Cap rate: 2.27%
• Cash-on-cash: -14.38%
• DSCR: 0.36
• 1% rule: 0.52%
• Cash to close: $80,920

Investor read

• This is a 3-bed/1.0-bath single-family listed at $289k.
• At list price, monthly cash flow is $-970 ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $125k (56.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $150k (48.0% below list).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $125k (56.8% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#34 in MI, #643 nationally) — a professional / high-income tenant draw. Strengths: commute A+, employment A+, housing A+; Watch: health & safety D+, amenities F.
• Grosse Pointe Public Schools (suburban): math 56% / reading 68% proficiency, ranked #24 of 540 in MI (top 4%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 13% free/reduced lunch — higher-income household profile.
• Zoned schools: John Monteith Elementary School (math 57% / reading 52%, grade C, #276 of 1,397 statewide, top 22%, 477 students, 26% FRL); Parcells Middle School (math 43% / reading 56%, grade C, #127 of 493 statewide, top 26%, 677 students, 36% FRL); Grosse Pointe North High School (math 45% / reading 73%, grade C+, #87 of 713 statewide, top 12%, 1,081 students, 31% FRL) — zoned schools average 31% FRL vs 13% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1947 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 162 active listings in the ZIP; 29 comparable units currently listed for rent nearby; rentals at typical pace (median 19d on market — plan ~3-4 weeks tenant-placement turnaround); 2,639 units permitted in Wayne County in 2024 (1,216 in 5+ unit buildings).
• Wayne County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 8 sale attempts since 29y 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.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 2.3% vs local median 3.0% in Grosse Pointe Woods — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 1947 — 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?
• 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)?
• Any water-quality or seasonal algae-bloom issues that affect tenant satisfaction or short-term-rental demand?