11480 Sunset Gln

Allendale, MI 49401

$125,000D-

3 bd · 2.0 ba · 1,456 sqft · Built 2021 · Manufactured · Pending · 61 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,674/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$208
• HOA: −$595
• Vac / Maint / Mgmt: −$352
• Net cashflow: $-136/mo
• Annual: $-1,633/yr
• Cap rate: 4.99%
• Cash-on-cash: -4.67%
• DSCR: 0.79
• 1% rule: 1.34%
• Cash to close: $35,000

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $125k. Condition is rated poor.
• At list price, monthly cash flow is $-136 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $105k (15.8% below list).
• Meets the 1% rule at list price ($2k rent vs $125k).
• It's been on market 61 days — a 6% lower offer ($118k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $105k (15.8% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $864 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#405 in MI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Allendale Public Schools (suburban): math 47% / reading 61% proficiency, ranked #79 of 540 in MI (top 15%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Evergreen Elementary (math 57% / reading 62%, grade B-, #200 of 1,397 statewide, top 16%, 547 students, 38% FRL); Allendale Middle School (math 44% / reading 59%, grade C, #102 of 493 statewide, top 21%, 554 students, 32% FRL); Allendale High School (math 42% / reading 72%, grade C, #99 of 713 statewide, top 14%, 775 students, 27% FRL).
• Watch-outs: HOA is 36% of rent.
• Market conditions: 167 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals leasing fast (median 5d on market — plan ~1-2 weeks tenant-placement turnaround); 1,237 units permitted in Ottawa County in 2024 (443 in 5+ unit buildings).
• Ottawa County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 6 sale attempts; this cycle's ask has dropped $20k (14%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 5.0% vs local median 2.1% in Allendale — 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 61 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Significant water damage indicated by dark patches
• Major: exterior siding — Severe wear and tear
• Major: exterior flooring — Cracked and uneven
• Major: HVAC/mechanicals — No visible signs, but likely outdated