4562 Seneca Dr

Okemos, MI 48864

$359,900D

4 bd · 2.5 ba · 2,392 sqft · Built 1963 · SingleFamily · Pending · 41 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,917/mo
• Mortgage (P&I): −$1,887
• Tax + insurance: −$448
• HOA: −$0
• Vac / Maint / Mgmt: −$613
• Net cashflow: $-31/mo
• Annual: $-378/yr
• Cap rate: 6.19%
• Cash-on-cash: -0.37%
• DSCR: 0.98
• 1% rule: 0.81%
• Cash to close: $100,772

Investor read

• This is a 4-bed/2.5-bath single-family listed at $360k.
• At list price, monthly cash flow is $-31 ($-378/yr) — negative.
• To cash-flow at today's rent, offer at most $354k (1.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $292k (19.0% below list).
• It's been on market 41 days — a 3% lower offer ($349k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $292k (19.0% 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 $11k of value loss. Plan a longer hold.
• Location reads 85/100 on livability (#32 in MI, #612 nationally) — a professional / high-income tenant draw. Strengths: employment A+, housing A+, health & safety A+; Watch: amenities D+, commute F.
• Okemos Public Schools (suburban): math 60% / reading 76% proficiency, ranked #19 of 540 in MI (top 4%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Bennett Woods Elementary School (math 57% / reading 67%, grade B, #160 of 1,397 statewide, top 13%, 479 students, 21% FRL); Chippewa Middle School (math 66% / reading 83%, grade A, #15 of 493 statewide, top 3%, 703 students, 19% FRL); Okemos High School (math 72% / reading 85%, grade A-, #9 of 713 statewide, top 1%, 1,466 students, 20% FRL).
• Market conditions: 103 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 350 units permitted in Ingham County in 2024 (186 in 5+ unit buildings).
• Ingham County population projected at +11% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 9 sale attempts since 3y 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 6.2% vs local median 3.2% in Okemos — 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?
• It's been on market 41 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• Built in 1963 — 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.