7885 Prairie Falcon Ct SE

Cutlerville, MI 49508

$115,000C+

3 bd · 2.0 ba · 2,052 sqft · Built 2000 · Other · Pending · 61 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,251/mo
• Mortgage (P&I): −$603
• Tax + insurance: −$192
• HOA: −$765
• Vac / Maint / Mgmt: −$473
• Net cashflow: $218/mo
• Annual: $2,621/yr
• Cap rate: 8.57%
• Cash-on-cash: 8.14%
• DSCR: 1.36
• 1% rule: 1.96%
• Cash to close: $32,200

Investor read

• This is a 3-bed/2.0-bath other listed at $115k.
• At list price, monthly cash flow is $218 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $115k).
• It's been on market 61 days — a 6% lower offer ($108k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $108k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $795 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#280 in MI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A-; Watch: crime C-, amenities F, commute F.
• Byron Center Public Schools (suburban): math 69% / reading 73% proficiency, ranked #15 of 540 in MI (top 3%) — strong family-tenant draw, lease renewals of 3-5y typical; only 20% free/reduced lunch — higher-income household profile.
• Zoned schools: Countryside Elementary School (math 86% / reading 86%, grade A+, #8 of 1,397 statewide, top 0%, 589 students, 22% FRL); Byron Center West Middle School (math 64% / reading 69%, grade A-, #33 of 493 statewide, top 7%, 673 students, 23% FRL); Byron Center High School (math 64% / reading 74%, grade B, #38 of 713 statewide, top 5%, 1,339 students, 21% FRL) — zoned schools at 22% FRL track the district average.
• Watch-outs: HOA is 34% of rent.
• Market conditions: Rents rising fast (+5.6%/yr); 157 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 2,253 units permitted in Kent County in 2024 (969 in 5+ unit buildings).
• Kent County population projected at +22% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 6 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.
• At projected returns (-3.0% appreciation + 5.6% rent growth), your $32k cash investment doubles in ~8 years — after that, you're playing with house money.
• Cap rate 8.6% vs local median 2.5% in Cutlerville — 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.
• This rent runs 39% of the median local income ($70k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 61 days. Have you received any prior offers? Is the seller open to a 6% 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.
• 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.