7540 Prospect Ave · Warren, MI 48091

$55,900

2 bd · 1.0 ba · 576 sqft · SingleFamily public records · 12 Days on market

Built 1940 4,356 sqft lot $97/sqft · 10% below area Est $86k · 35% under

---

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
• ARV discount +15.0/15.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Livability +3.7/5.0
• Rent growth +3.1/5.0
• Condition / age +2.5/5.0
• Schools +1.0/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

Handyman Special; as it is condition . Amazing 2/3 bedrooms Ranch house with long concrete tiled Driveway now available for first time investor , first time buyer or fixflipper . House got huge potential at proper investment zone of nine mile warren areas with private fenced with small porch at the front and back. Seller never lived there and will not do any repair or renovation. COC buyer and his agents responsibility. Proper convenient location where groceries, school, park, mosque/church, community hall, mall, ride, major highways etc. within walking distance. Would not last long.

Key facts

• Private fenced
• Walking distance
• Convenient location

Tags

• LONG CONCRETE TILED DRIVEWAY
• PRIVATE FENCED
• SMALL PORCH
• CONVENIENT LOCATION
• WALKING DISTANCE

Property features AI

Finance

• Other: Lot approximately 0.1 acre (35 x 120)

Exterior

• Parking: Driveway (no garage)
• Utilities: Public water; Public sewer
• Home design: Single-family residence; One and one-half story; Ground-level entry with steps
• Construction: Aluminum siding; Asphalt roof
• Exterior features: Fenced front yard; Paved private road access; Private road maintained by owner/association; Sidewalks in the community

Interior

• Bathrooms: One full bathroom
• Heating & cooling: Forced air heating (natural gas); No central cooling
• Interior features: Crawl space basement; Five total rooms
• Laundry & utility: Laundry room with washer hookup and gas dryer hookup

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $56k.

Deal economics

• At list price, monthly cash flow is $552 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $56k).
• Cap rate 18.1% vs local median 5.3% in Warren — 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 74/100 on livability (#171 in MI, #4,491 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: schools D, amenities D, employment D.
• Van Dyke Public Schools (urban): math 7% / reading 19% proficiency, ranked #512 of 540 in MI (top 95%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 80% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising (+2.4%/yr); 168 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 71% of comp listings sitting > 30 days — soft ceiling on asking rent; 1,321 units permitted in Macomb County in 2024 (86 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $386 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Macomb County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 2.4% rent growth), your $16k cash investment doubles in ~3 years — after that, you're playing with house money.

Negotiation context

• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• 14 sale attempts since 31y 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.
• Current owner paid $38k; 47% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Risks & watch-outs

• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $55,900

Questions for the listing agent

1. Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
4. Crime grade is D 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?
5. 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.
6. 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.
7. 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: 2.10% ✓
• Cap rate: 18.14%
• Cash-on-cash: 42.30%
• DSCR: 2.88
• GRM: 4.0

CMA / ARV

• ARV (median comp): $86,142
• List price: $55,900
• Delta: -24.83%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 9 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
7540 Prospect Ave	0.00mi	2/1.0	576 (0%)	5mo	$38,000	$66	96
21832 Conners Ave	0.41mi	2/1.0	600 (+4%)	3mo	$84,000	$140	71
8101 Rivard Ave	0.36mi	2/2.0	616 (+7%)	0mo	$75,000	$122	67
7083 Victory Ave	0.13mi	1/1.0 (-1)	594 (+3%)	20mo	$32,900	$55	67
8278 Jackson Ave	0.42mi	2/1.0	592 (+3%)	12mo	$82,000	$139	66
20493 Carrie St	0.41mi	2/1.0	576 (0%)	18mo	$25,000	$43	65
8094 Chalmers Ave	0.30mi	2/1.0	630 (+9%)	6mo	$64,000	$102	65
20119 Carrie St	0.64mi	2/1.0	646 (+12%)	8mo	$70,000	$108	43
8477 Sherman Ave	0.48mi	1/1.0 (-1)	505 (-12%)	13mo	$60,000	$119	42

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 2.35% rent growth · sell at horizon

5-year hold

• IRR: 38.3%
• Equity multiple: 2.62×
• Total profit: $25,331
• Equity at exit: $8,335

10-year hold

• IRR: 44.5%
• Equity multiple: 5.11×
• Total profit: $64,262
• Equity at exit: $4,833

Cash invested: $15,652 (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 48091

• Rents YoY: 2.4%
• Active inventory: 168
• Price-to-rent: 4.0×

Monthly cashflow live

• Estimated rent: $1,175 high
• Mortgage (P&I): −$293
• Tax from tax record: −$60 /mo · $725/yr
• Insurance: −$23
• HOA: −$0
• Vacancy / Maint / Mgmt: −$247
• Net cashflow: $552

Break-even live

Break-even rent $477

Max offer price $55,900

Occupancy floor 48%

Sensitivity live

Price	-10% $583	-5% $568	+0% $552	+5% $536	+10% $520
Rent	-10% $459	-5% $505	+0% $552	+5% $598	+10% $645
Rate	-1.0pp $580	-0.5pp $566	base $552	+0.5pp $537	+1.0pp $523

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: $13,975
• Closing costs: $1,677
• Reserves months: —
• Total cash needed: —

Rent comps 7 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
7033 Westminster Ave Warren, MI	2.0	1.0	561	$1,050	$1.87	44d	1	0.18mi
7605 Jackson Ave Warren, MI	2.0	1.0	600	$1,165	$1.94	24d	1	0.21mi
7275 Chalmers Ave Warren, MI	2.0	1.0	703	$1,200	$1.71	24d	1	0.26mi
8036 Hupp Ave Warren, MI	2.0	1.0	680	$1,150	$1.69	44d	1	0.45mi
11236 Studebaker Ave Warren, MI	2.0	1.0	672	$1,175	$1.75	44d	1	0.86mi
8103 Lozier Ave Unit 2 Warren, MI	1.0	1.0	600	$650	$1.08	44d	1	0.94mi
11130 Stephens Rd Warren, MI	2.0	1.0	750	$1,300	$1.73	44d	1	1.40mi

Listing history 45 events

1. 2026-06-18
   days on market $55,900 Active 12 DOM
2. 2026-06-17
   days on market $55,900 Active 11 DOM
3. 2026-06-16
   days on market $55,900 Active 10 DOM
4. 2026-06-15
   days on market $55,900 Active 9 DOM
5. 2026-06-13
   days on market $55,900 Active 7 DOM
6. 2026-06-13
   days on market $55,900 Active 6 DOM
7. 2026-06-09
   days on market $55,900 Active 3 DOM
8. 2026-06-08
   days on market $55,900 Active 2 DOM
9. 2026-06-07
   pricestatusdays on marketlisting id $55,900 Active 1 DOM
10. 2026-05-19
    historical
11. 2026-05-19
    historical
12. 2026-04-25
    price $64,750
13. 2026-04-25
    price $64,750
14. 2026-04-18
    price $66,850
15. 2026-04-18
    price $66,850
16. 2026-03-31
    listed $68,500 Active
17. 2026-03-31
    listed $68,500 Active
18. 2026-03-30
    historical
19. 2026-01-28
    soldstatus $38,000 Closed
20. 2026-01-28
    soldstatus $38,000 Closed
21. 2026-01-03
    status Pending
22. 2026-01-03
    status Pending
23. 2025-11-14
    price $49,500
24. 2025-11-13
    price $49,500
25. 2025-10-31
    listed $55,000 Active
26. 2025-10-31
    listed $55,000 Active
27. 2018-10-31
    soldstatus $30,000
28. 2018-10-31
    soldstatus $30,000 Closed
29. 2018-10-22
    status Pending
30. 2018-10-18
    status Active
31. 2018-10-05
    status Pending
32. 2018-09-26
    listed $34,900
33. 2018-09-26
    listed $34,900 Active
34. 2008-01-10
    historical
35. 2008-01-10
    historical
36. 2008-01-09
    listed $19,900
37. 2008-01-09
    listed $19,900
38. 2008-01-09
    historical
39. 2008-01-09
    historical
40. 2007-10-17
    listed $49,900
41. 2007-10-17
    listed $49,900
42. 1995-11-07
    soldstatus $26,000
43. 1995-11-06
    soldstatus $26,000
44. 1995-07-19
    historical
45. 1995-07-14
    listed $28,900

ⓘ 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: $725 · $60/mo
• Projected year-2 tax: $793 · $66/mo
• Expected delta: +$68/yr (+$6/mo · 9.4%)

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

Climate risk First Street

• 🌊 Flood 4/10 Moderate FEMA zone X (unshaded) · 22% 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 1/10 Low
• 🫁 Air quality 3/10 Moderate 3 unhealthy d/yr today · 4 by 30 yrs out

Taxation est. · year 1

• Rental income: $14,105
• − Mortgage interest: −$3,131
• − Property taxes: −$725
• − Insurance: −$280
• − Repairs & maintenance: −$1,128
• − Management: −$1,128
• − Depreciation: −$1,626
• Taxable income: $6,086
• Est. tax owed @ 24.0%: −$1,461
• After-tax cash flow: $5,160/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: Van Dyke Public Schools
• NCES district ID: 2634680
• Math proficiency: 7% ▼ -11.00%
• Reading proficiency: 19% ▼ -5.00%
• Median HH income: $33,231
• Composite: 10.46/100
• National rank: #9784
• State rank: #512 of 540 in MI

Livability — Warren

• Score: 74/100
• State rank: #171
• US rank: #4491

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Warren, MI
• County: Macomb County · 638,552 people
• City population: 114,937
• Metro: Detroit-Warren-Dearborn, MI
• Population (ZIP): 30,696
• Household income: $54,230
• Rent vs Own: 35.1% rent · 64.9% own
• Severe rent burden: 1296.0

Population outlook (Macomb County) Hauer SSP2

• Today (2025): 925,296 people
• By 2030: 948,226 · +2.5%
• By 2040: 983,961 · +6.3%
• By 2050: 1,010,200 · +9.2%
• By 2075: 1,076,222 · +16.3%
• By 2100: 1,077,065 · +16.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.68)
• Race & ethnicity: White 47% Black 25% Asian 19% Two or more races 5% Hispanic / Latino 3% Native American 2%
• Common ancestry: Romanian 7% Lithuanian 2% Slovak 1%
• Foreign-born: 16% · Canada
• Languages at home: 77% English-only · Other Indo-European 14% Other Asian/Pacific 3% Russian/Polish/Slavic 2%

Political lean MEDSL · Macomb

• 2024 margin: R (+13.7) · D 42.2% · R 55.9% · Other 1.9%
• 2008→2024 swing: -22.3pp toward R · 2008: 8.6pp · 2024: -13.7pp
• All cycles: 2024: R+13.7 2020: R+8.1 2016: R+11.6 2012: D+4.0 2008: D+8.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -199.66%
• Current HPI: 177.9273
• Rent YoY: ▲ 2.35%
• 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

+93.4% since first listed

38 events — show timeline

• 2026-06-06 Listed $55,900 REALCOMP
• 2026-06-06 Listed $55,900 MiRealSource-MiMLS
• 2026-05-19 Listing Removed — MiRealSource-MiMLS
• 2026-05-19 Listing Removed — REALCOMP
• 2026-04-25 Price Changed $64,750 MiRealSource-MiMLS
• 2026-04-25 Price Changed $64,750 REALCOMP
• 2026-04-18 Price Changed $66,850 MiRealSource-MiMLS
• 2026-04-18 Price Changed $66,850 REALCOMP
• 2026-03-31 Listed $68,500 MiRealSource-MiMLS
• 2026-03-31 Listed $68,500 REALCOMP
• 2026-03-30 Coming Soon — MiRealSource-MiMLS
• 2026-01-28 Sold (MLS) $38,000 MiRealSource-MiMLS
• 2026-01-28 Sold (MLS) $38,000 REALCOMP
• 2026-01-03 Pending — MiRealSource-MiMLS
• 2026-01-03 Pending — REALCOMP
• 2025-11-14 Price Changed $49,500 MiRealSource-MiMLS
• 2025-11-13 Price Changed $49,500 REALCOMP
• 2025-10-31 Listed $55,000 REALCOMP
• 2025-10-31 Listed $55,000 MiRealSource-MiMLS
• 2018-10-31 Sold (MLS) $30,000 REALCOMP
• 2018-10-31 Sold (MLS) $30,000 MiRealSource-MiMLS
• 2018-10-22 Pending — MiRealSource-MiMLS
• 2018-10-18 Relisted — MiRealSource-MiMLS
• 2018-10-05 Pending — MiRealSource-MiMLS
• 2018-09-26 Listed $34,900 REALCOMP
• 2018-09-26 Listed $34,900 MiRealSource-MiMLS
• 2008-01-10 Listing Removed — REALCOMP
• 2008-01-10 Listing Removed — MiRealSource-MiMLS
• 2008-01-09 Listing Removed — MiRealSource-MiMLS
• 2008-01-09 Listing Removed — REALCOMP
• 2008-01-09 Listed $19,900 REALCOMP
• 2008-01-09 Listed $19,900 MiRealSource-MiMLS
• 2007-10-17 Listed $49,900 MiRealSource-MiMLS
• 2007-10-17 Listed $49,900 REALCOMP
• 1995-11-07 Sold (Public Records) $26,000 Public Records
• 1995-11-06 Sold (MLS) $26,000 MiRealSource-MiMLS
• 1995-07-19 Listing Removed — MiRealSource-MiMLS
• 1995-07-14 Listed $28,900 MiRealSource-MiMLS

Property tax history

+6.0%/yr

Latest (2025): $725 · +2.5% YoY. Source: county tax records.