5406 Ivanhoe St · Detroit, MI 48204

$39,900

9 bd · 4.0 ba · 3,700 sqft · Townhouse public records · 177 Days on market

Built 1923 5,227 sqft lot $11/sqft · 44% below area ↓ 38% since listing

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Why this score? — see what drove the B+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Appreciation +10.0/10.0
• ARV discount +7.5/15.0
• Livability +3.7/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +1.3/10.0

Listing remarks MLS

Great income opportunity to include vacant lot, 5405 Spokane. Great location close to Livernois stretch, shopping, schools, major freeways and more! Home and lot will not be sold separately, NO Exceptions! Sale contingent on buyer/seller executed development agreement. Please note that the Detroit Land Bank Authority is entitled to a tax capture for the 5 tax years subsequent to transferring ownership of the property. The tax capture may be incompatible with tax abatements and lot combinations that are otherwise available to the selected purchaser. DLBA will review requests to waive its tax capture rights and may require a payment in lieu of taxes to approve such requests. The payment will be determined upon reviewing the development proforma and effect of any tax abatements on the purchase and development financing.

Key facts

• 5,227 sq ft lot
• Built 1923
• Listed 177 days

What this means for you Summary

Snapshot

• This is a 9-bed/4.0-bath townhouse listed at $40k.

Deal economics

• At list price, monthly cash flow is $999 ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $40k).
• Recommended offer: $35k (12.0% below list) — sets the bar for market timing.
• Cap rate 36.3% vs local median 10.2% in Detroit — 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.

Location & tenants

• Location reads 73/100 on livability (#218 in MI) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, cost of living A+; Watch: schools F, crime F, employment F.
• Detroit Public Schools Community District (urban): math 10% / reading 24% proficiency, ranked #499 of 540 in MI (top 92%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 90% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 244 active listings in the ZIP; lower-income renter base — watch delinquency; 2,639 units permitted in Wayne County in 2024 (1,216 in 5+ unit buildings).
• At $1,587/mo this rent would consume 55% of the median local household income ($34k/yr) (locally 1418% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• In year one you build about $4k of equity ($276 loan paydown + $4k appreciation (10.0% local appreciation)).
• Wayne County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~1 year — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 177 days — a 12% lower offer ($35k) is reasonable based on typical stale-listing flexibility.
• 8 sale attempts since 6y 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.

Risks & watch-outs

• Watch-outs: built in 1923 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $35,112 (12.0% below list)

Questions for the listing agent

1. It's been on market 177 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Built in 1923 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
6. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
7. 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.
8. 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.
9. 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.

Investment metrics

• 1% rule: 3.98% ✓
• Cap rate: 36.35%
• Cash-on-cash: 107.34%
• DSCR: 5.78
• GRM: 2.1

CMA / ARV

• ARV (median comp): $106,435
• List price: $39,900
• Delta: -62.51%
• Verdict: UNDERPRICED
• Comps: 20 within 2.0 mi

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: —
• Equity multiple: 8.64×
• Total profit: $85,392
• Equity at exit: $35,945

10-year hold

• IRR: —
• Equity multiple: 19.03×
• Total profit: $201,432
• Equity at exit: $77,517

Cash invested: $11,172 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 62 Landlord-Friendly
• State Michigan: 62 Landlord-Friendly · EVEN
• County: — inherits STATE
• City: — inherits STATE

7-day pay-or-quit; mixed climate; Detroit/AA have some protections.

Methodology + full state rankings →

ZIP-level market 48204

• Home prices YoY: 18.5%
• Active inventory: 244
• Price-to-rent: 2.1×

Monthly cashflow live

• Estimated rent: $1,587 medium
• Mortgage (P&I): −$209
• Tax from tax record: −$28 /mo · $340/yr
• Insurance: −$17
• HOA: −$0
• Vacancy / Maint / Mgmt: −$333
• Net cashflow: $999

Break-even live

Break-even rent $322

Max offer price $39,900

Occupancy floor 32%

Sensitivity live

Price	-10% $1,022	-5% $1,011	+0% $999	+5% $988	+10% $977
Rent	-10% $874	-5% $937	+0% $999	+5% $1,062	+10% $1,125
Rate	-1.0pp $1,019	-0.5pp $1,010	base $999	+0.5pp $989	+1.0pp $979

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $9,975
• Closing costs: $1,197
• Reserves months: —
• Total cash needed: —

Listing history 31 events

1. 2026-06-18
   days on market $39,900 Active 177 DOM
2. 2026-06-17
   days on market $39,900 Active 176 DOM
3. 2026-06-15
   days on market $39,900 Active 174 DOM
4. 2026-06-13
   days on market $39,900 Active 172 DOM
5. 2026-06-13
   days on market $39,900 Active 171 DOM
6. 2026-06-09
   days on market $39,900 Active 168 DOM
7. 2026-06-08
   days on market $39,900 Active 167 DOM
8. 2026-06-07
   days on market $39,900 Active 166 DOM
9. 2026-06-04
   days on market $39,900 Active 163 DOM
10. 2026-06-03
    days on market $39,900 Active 162 DOM
11. 2026-06-01
    days on market $39,900 Active 160 DOM
12. 2026-05-31
    days on market $39,900 Active 159 DOM
13. 2025-12-16
    listed $39,900 Active 828-char remark

    Show marketing remark (828 chars)

    Great income opportunity to include vacant lot, 5405 Spokane. Great location close to Livernois stretch, shopping, schools, major freeways and more! Home and lot will not be sold separately, NO Exceptions! Sale contingent on buyer/seller executed development agreement. Please note that the Detroit Land Bank Authority is entitled to a tax capture for the 5 tax years subsequent to transferring ownership of the property. The tax capture may be incompatible with tax abatements and lot combinations that are otherwise available to the selected purchaser. DLBA will review requests to waive its tax capture rights and may require a payment in lieu of taxes to approve such requests. The payment will be determined upon reviewing the development proforma and effect of any tax abatements on the purchase and development financing.

14. 2025-12-16
    listed $39,900 Active 828-char remark

    Show marketing remark (828 chars)

    Great income opportunity to include vacant lot, 5405 Spokane. Great location close to Livernois stretch, shopping, schools, major freeways and more! Home and lot will not be sold separately, NO Exceptions! Sale contingent on buyer/seller executed development agreement. Please note that the Detroit Land Bank Authority is entitled to a tax capture for the 5 tax years subsequent to transferring ownership of the property. The tax capture may be incompatible with tax abatements and lot combinations that are otherwise available to the selected purchaser. DLBA will review requests to waive its tax capture rights and may require a payment in lieu of taxes to approve such requests. The payment will be determined upon reviewing the development proforma and effect of any tax abatements on the purchase and development financing.

15. 2022-10-26
    status Pending
16. 2022-10-26
    status Pending
17. 2022-10-26
    historical
18. 2022-10-26
    historical
19. 2022-10-10
    listed $2,625 Active
20. 2022-10-10
    historical
21. 2022-10-10
    listed $2,625 Active
22. 2022-10-10
    historical
23. 2021-11-08
    status Active
24. 2021-11-08
    status Active
25. 2021-10-02
    status Pending
26. 2021-10-02
    status Pending
27. 2021-01-05
    price $2,625
28. 2021-01-04
    price $2,625
29. 2020-10-09
    listed $3,500 Active
30. 2020-10-09
    listed $3,500 Active
31. 2004-06-03
    soldstatus $64,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast MI · Partial reset (capped growth)

• Current annual tax: $340 · $28/mo
• Projected year-2 tax: $477 · $40/mo
• Expected delta: +$137/yr (+$11/mo · 40.4%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 6/10 Major FEMA zone X (unshaded) · 68% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 3/10 Moderate 7 d/yr ≥97°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 4/10 Moderate 4 unhealthy d/yr today · 6 by 30 yrs out

Taxation est. · year 1

• Rental income: $19,042
• − Mortgage interest: −$2,235
• − Property taxes: −$340
• − Insurance: −$200
• − Repairs & maintenance: −$1,523
• − Management: −$1,523
• − Depreciation: −$1,161
• Taxable income: $12,060
• Est. tax owed @ 24.0%: −$2,894
• After-tax cash flow: $9,098/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Detroit Public Schools Community District
• NCES district ID: 2601103
• Math proficiency: 10% ▼ -2.00%
• Reading proficiency: 24% ▲ 6.00%
• Median HH income: $25,815
• Composite: 13.06/100
• National rank: #9564
• State rank: #499 of 540 in MI

Livability — Detroit

• Score: 73/100
• State rank: #218
• US rank: #5427

Category grades

Amenities A+ Commute A+ Cost of living A+ Crime F Employment F Housing A+ Health & safety B- User ratings F

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Detroit, MI
• County: Wayne County · 1,562,939 people
• City population: 572,865
• Metro: Detroit-Warren-Dearborn, MI
• Population (ZIP): 20,696
• Household income: $34,468
• Rent vs Own: 45.0% rent · 55.0% own
• Severe rent burden: 1418.0

Population outlook (Wayne County) Hauer SSP2

• Today (2025): 1,675,273 people
• By 2030: 1,620,300 · -3.3%
• By 2040: 1,502,341 · -10.3%
• By 2050: 1,384,039 · -17.4%
• By 2075: 1,124,592 · -32.9%
• By 2100: 881,193 · -47.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Black (86%)
• Race & ethnicity: Black 86% Two or more races 7% Hispanic / Latino 5% White 4% Native American 2%
• Hispanic origin (detail): Mexican 4%
• Common ancestry: Hispanic 1% Romanian 1%
• Foreign-born: 2% · Canada
• Languages at home: 95% English-only · Spanish 4%

Political lean MEDSL · Wayne

• 2024 margin: Strong D (+29.0) · D 62.7% · R 33.7% · Other 3.6%
• 2008→2024 swing: -20.5pp toward R · 2008: 49.5pp · 2024: 29.0pp
• All cycles: 2024: D+29.0 2020: D+38.1 2016: D+37.3 2012: D+46.9 2008: D+49.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 36.51%
• Current HPI: 234.0465
• Rent YoY: —
• Metro: Detroit-Warren-Dearborn, MI
• State GDP YoY: ▲ 1.37%
• F500 in state: 28

Industry mix (Fortune 500 HQ in MI)

Industry	F500 HQs	Revenue
▸Automotive Parts	3	$48B
▸Automotive	2	$372B
▸Chemicals	1	$45B
▸Automotive Retail	1	$29B
▸Healthcare / Medical Devices	1	$23B
▸Automotive Technology	1	$20B

Price history

-37.7% since first listed

19 events — show timeline

• 2025-12-16 Listed $39,900 MiRealSource-MiMLS
• 2025-12-16 Listed $39,900 REALCOMP
• 2022-10-26 Pending — MiRealSource-MiMLS
• 2022-10-26 Pending — REALCOMP
• 2022-10-26 Listing Removed — MiRealSource-MiMLS
• 2022-10-26 Listing Removed — REALCOMP
• 2022-10-10 Listing Removed — MiRealSource-MiMLS
• 2022-10-10 Listed $2,625 MiRealSource-MiMLS
• 2022-10-10 Listing Removed — REALCOMP
• 2022-10-10 Listed $2,625 REALCOMP
• 2021-11-08 Relisted — MiRealSource-MiMLS
• 2021-11-08 Relisted — REALCOMP
• 2021-10-02 Pending — MiRealSource-MiMLS
• 2021-10-02 Pending — REALCOMP
• 2021-01-05 Price Changed $2,625 MiRealSource-MiMLS
• 2021-01-04 Price Changed $2,625 REALCOMP
• 2020-10-09 Listed $3,500 MiRealSource-MiMLS
• 2020-10-09 Listed $3,500 REALCOMP
• 2004-06-03 Sold (Public Records) $64,000 Public Records

Property tax history

-8.5%/yr

Latest (2016): $340 · +0.0% YoY. Source: county tax records.