4083 W Herbison Rd

Watertown, MI 48820

$287,000C-

3 bd · 2.5 ba · 1,966 sqft · Built 1978 · SingleFamily · Active · 153 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,306/mo
• Mortgage (P&I): −$1,505
• Tax + insurance: −$220
• HOA: −$0
• Vac / Maint / Mgmt: −$484
• Net cashflow: $96/mo
• Annual: $1,158/yr
• Cap rate: 6.70%
• Cash-on-cash: 1.44%
• DSCR: 1.06
• 1% rule: 0.80%
• Cash to close: $80,360

Investor read

• This is a 3-bed/2.5-bath single-family listed at $287k.
• At list price, monthly cash flow is $96 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $231k (19.6% below list).
• It's been on market 153 days — a 12% lower offer ($253k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $231k (19.6% 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 $9k of value loss. Plan a longer hold.
• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• Dewitt Public Schools (suburban): math 51% / reading 60% proficiency, ranked #53 of 540 in MI (top 10%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 12% free/reduced lunch — higher-income household profile.
• Zoned schools: Dewitt High School (math 46% / reading 69%, grade C, #95 of 713 statewide, top 14%, 962 students, 21% FRL).
• Market conditions: 104 active listings in the ZIP; 1 comparable units currently listed for rent nearby; high-income renter base; 154 units permitted in Clinton County in 2024 (0 in 5+ unit buildings).
• 5 sale attempts since 16y ago; this cycle's ask has dropped $52k (15%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Questions for listing agent

• It's been on market 153 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.