196 Luther Ave · Pontiac, MI 48341

$119,000

3 bd · 1.0 ba · 869 sqft · SingleFamily public records · 5 Days on market

Built 1947 5,227 sqft lot $137/sqft · 12% below area Est $135k · 12% under

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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 +28.8/30.0
• ARV discount +12.7/15.0
• DSCR +10.0/10.0
• 1% rule +7.2/10.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +1.0/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

* * HIGHEST AND BEST OFFERS DUE BY 7PM ON 5/2. * * Charming and beautifully updated 3-bedroom, 1-bath bungalow in Pontiac offering the perfect blend of comfort, convenience, and potential. Ideally situated on a quiet dead-end street just moments from Woodward Avenue and Telegraph Road, this home provides easy access to shopping, dining, and commuting. Inside, you'll find a bright living area, spacious bedrooms, and a cozy kitchen, while the upper level offers flexible additional living space ideal for a third bedroom, home office, or bonus room. Major updates include a new roof (2023), new windows (2017), new furnace/electrical upgrades (2017), new hot water tank (2024), brand new appliances, and all new flooring throughout. Conveniently located near Costco, Target, and many great restaurants, this move-in-ready home is a fantastic opportunity for first-time buyers, investors, or anyone looking to downsize.

Key facts

• 5,227 sq ft lot
• Built 1947
• Listed 5 days

Property features AI

Exterior

• Parking: No garage
• Utilities: Public water; Public sewer
• Home design: Single-family residence; One-and-a-half stories; Ground-level entry with steps
• Construction: Built with other construction materials; Block foundation
• Exterior features: Covered porch

Interior

• Kitchen: Gas range; Refrigerator
• Bedrooms: 5 total rooms (includes bedrooms and living spaces)
• Bathrooms: 1 full bathroom
• Heating & cooling: Forced air heating (natural gas); No cooling
• Interior features: Free-standing gas range; Free-standing refrigerator; Unfinished basement

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $119k.

Deal economics

• At list price, monthly cash flow is $400 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $119k).
• Cap rate 10.3% vs local median 6.7% in Pontiac — 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 64/100 on livability (#499 in MI) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: health & safety D, schools F, crime F.
• Pontiac City School District (urban): math 8% / reading 17% proficiency, ranked #514 of 540 in MI (top 95%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 81% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 100 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); 44% of comp listings sitting > 30 days — soft ceiling on asking rent; 2,614 units permitted in Oakland County in 2024 (721 in 5+ unit buildings).
• This rent runs 34% of the median local income ($51k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $823 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Oakland County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $33k cash investment doubles in ~9 years — after that, you're playing with house money.

Negotiation context

• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• 8 sale attempts since 19y 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 1947 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $119,000

Questions for the listing agent

1. Built in 1947 — 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 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?
4. 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?
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: 1.22% ✓
• Cap rate: 10.32%
• Cash-on-cash: 14.40%
• DSCR: 1.64
• GRM: 6.9

CMA / ARV

• ARV (median comp): $134,643
• List price: $119,000
• Delta: -11.62%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
196 Luther Ave	0.00mi	3/1.0	869 (0%)	0mo	$125,000	$144	100
481 Harvey Ave	0.42mi	2/1.0 (-1)	887 (+2%)	1mo	$75,000	$85	71
519 Highland Ave	0.31mi	3/1.0	936 (+8%)	3mo	$134,715	$144	70
486 Fildew Ave	0.60mi	3/1.0	890 (+2%)	0mo	$110,845	$125	68
466 Wyoming Ave	0.55mi	3/1.0	883 (+2%)	5mo	$98,000	$111	67
466 Colorado Ave	0.53mi	3/1.0	888 (+2%)	6mo	$138,000	$155	66
470 Fildew Ave	0.57mi	3/1.0	890 (+2%)	8mo	$135,000	$152	63
285 Bondale Ave	0.22mi	2/1.0 (-1)	973 (+12%)	3mo	$145,000	$149	62
182 Crystal Lake Dr	0.68mi	3/1.0	878 (+1%)	11mo	$92,500	$105	58
530 S Jessie St	0.65mi	2/1.0 (-1)	818 (-6%)	14mo	$65,000	$79	43
534 Nevada Ave	0.71mi	3/1.0	978 (+12%)	7mo	$152,000	$155	40
453 Central Ave	0.68mi	3/1.0	970 (+12%)	13mo	$120,000	$124	38

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 · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 4.8%
• Equity multiple: 1.18×
• Total profit: $6,153
• Equity at exit: $17,743

10-year hold

• IRR: 14.2%
• Equity multiple: 2.14×
• Total profit: $38,036
• Equity at exit: $10,289

Cash invested: $33,320 (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 48341

• Active inventory: 100
• Price-to-rent: 6.9×

Monthly cashflow live

• Estimated rent: $1,447 high
• Mortgage (P&I): −$624
• Tax from tax record: −$70 /mo · $836/yr
• Insurance: −$50
• HOA: −$0
• Vacancy / Maint / Mgmt: −$304
• Net cashflow: $400

Break-even live

Break-even rent $941

Max offer price $119,000

Occupancy floor 67%

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: $29,750
• Closing costs: $3,570
• Reserves months: —
• Total cash needed: —

Rent comps 9 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
900 Martin Luther King Jr Blvd S Pontiac, MI	1.0–2.0	1.0	800	$1,065	$1.33	5d	1	0.36mi
460 Nebraska Ave Pontiac, MI	2.0	1.0	665	$1,050	$1.58	43d	1	0.56mi
471 Montana Ave Pontiac, MI	3.0	1.0	1017	$1,599	$1.57	43d	1	0.60mi
594 Colorado Ave Pontiac, MI	3.0	1.0	1008	$1,075	$1.07	24d	1	0.76mi
611 Montana Ave Pontiac, MI	3.0	1.0	1112	$1,350	$1.21	43d	1	0.83mi
249 W Wilson Ave Unit 1 Pontiac, MI	3.0	1.0	900	$1,540	$1.71	43d	1	0.86mi
2083 S Telegraph Rd Bloomfield Twp, MI	1.0–2.0	1.0–2.0	938	$2,200	$2.34	1d	24	1.01mi
128 S Edith St Pontiac, MI	2.0–3.0	2.0	1155	$1,700	$1.47	17d	1	1.43mi
97 S Jessie St Unit 2 Pontiac, MI	2.0	1.0	800	$1,120	$1.40	24d	1	1.46mi

Listing history 17 events

1. 2026-05-04
   status Pending 923-char remark

   Show marketing remark (923 chars)

   * * HIGHEST AND BEST OFFERS DUE BY 7PM ON 5/2. * * Charming and beautifully updated 3-bedroom, 1-bath bungalow in Pontiac offering the perfect blend of comfort, convenience, and potential. Ideally situated on a quiet dead-end street just moments from Woodward Avenue and Telegraph Road, this home provides easy access to shopping, dining, and commuting. Inside, you'll find a bright living area, spacious bedrooms, and a cozy kitchen, while the upper level offers flexible additional living space ideal for a third bedroom, home office, or bonus room. Major updates include a new roof (2023), new windows (2017), new furnace/electrical upgrades (2017), new hot water tank (2024), brand new appliances, and all new flooring throughout. Conveniently located near Costco, Target, and many great restaurants, this move-in-ready home is a fantastic opportunity for first-time buyers, investors, or anyone looking to downsize.

2. 2026-05-04
   status Pending 923-char remark

   Show marketing remark (923 chars)

   * * HIGHEST AND BEST OFFERS DUE BY 7PM ON 5/2. * * Charming and beautifully updated 3-bedroom, 1-bath bungalow in Pontiac offering the perfect blend of comfort, convenience, and potential. Ideally situated on a quiet dead-end street just moments from Woodward Avenue and Telegraph Road, this home provides easy access to shopping, dining, and commuting. Inside, you'll find a bright living area, spacious bedrooms, and a cozy kitchen, while the upper level offers flexible additional living space ideal for a third bedroom, home office, or bonus room. Major updates include a new roof (2023), new windows (2017), new furnace/electrical upgrades (2017), new hot water tank (2024), brand new appliances, and all new flooring throughout. Conveniently located near Costco, Target, and many great restaurants, this move-in-ready home is a fantastic opportunity for first-time buyers, investors, or anyone looking to downsize.

3. 2026-04-30
   listed $119,000 Active 923-char remark

   Show marketing remark (923 chars)

   * * HIGHEST AND BEST OFFERS DUE BY 7PM ON 5/2. * * Charming and beautifully updated 3-bedroom, 1-bath bungalow in Pontiac offering the perfect blend of comfort, convenience, and potential. Ideally situated on a quiet dead-end street just moments from Woodward Avenue and Telegraph Road, this home provides easy access to shopping, dining, and commuting. Inside, you'll find a bright living area, spacious bedrooms, and a cozy kitchen, while the upper level offers flexible additional living space ideal for a third bedroom, home office, or bonus room. Major updates include a new roof (2023), new windows (2017), new furnace/electrical upgrades (2017), new hot water tank (2024), brand new appliances, and all new flooring throughout. Conveniently located near Costco, Target, and many great restaurants, this move-in-ready home is a fantastic opportunity for first-time buyers, investors, or anyone looking to downsize.

4. 2026-04-30
   listed $119,000 Active 923-char remark

   Show marketing remark (923 chars)

   * * HIGHEST AND BEST OFFERS DUE BY 7PM ON 5/2. * * Charming and beautifully updated 3-bedroom, 1-bath bungalow in Pontiac offering the perfect blend of comfort, convenience, and potential. Ideally situated on a quiet dead-end street just moments from Woodward Avenue and Telegraph Road, this home provides easy access to shopping, dining, and commuting. Inside, you'll find a bright living area, spacious bedrooms, and a cozy kitchen, while the upper level offers flexible additional living space ideal for a third bedroom, home office, or bonus room. Major updates include a new roof (2023), new windows (2017), new furnace/electrical upgrades (2017), new hot water tank (2024), brand new appliances, and all new flooring throughout. Conveniently located near Costco, Target, and many great restaurants, this move-in-ready home is a fantastic opportunity for first-time buyers, investors, or anyone looking to downsize.

5. 2026-04-29
   historical $119,000 923-char remark

   Show marketing remark (923 chars)

   * * HIGHEST AND BEST OFFERS DUE BY 7PM ON 5/2. * * Charming and beautifully updated 3-bedroom, 1-bath bungalow in Pontiac offering the perfect blend of comfort, convenience, and potential. Ideally situated on a quiet dead-end street just moments from Woodward Avenue and Telegraph Road, this home provides easy access to shopping, dining, and commuting. Inside, you'll find a bright living area, spacious bedrooms, and a cozy kitchen, while the upper level offers flexible additional living space ideal for a third bedroom, home office, or bonus room. Major updates include a new roof (2023), new windows (2017), new furnace/electrical upgrades (2017), new hot water tank (2024), brand new appliances, and all new flooring throughout. Conveniently located near Costco, Target, and many great restaurants, this move-in-ready home is a fantastic opportunity for first-time buyers, investors, or anyone looking to downsize.

6. 2008-03-01
   historical
7. 2008-03-01
   historical
8. 2007-11-29
   listed $49,900
9. 2007-11-29
   listed $49,900
10. 2007-11-20
    historical
11. 2007-11-20
    historical
12. 2007-07-20
    listed $49,900
13. 2007-07-20
    listed $49,900
14. 2007-07-19
    historical
15. 2007-07-19
    historical
16. 2007-03-19
    listed $69,900
17. 2007-03-19
    listed $69,900

ⓘ 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: $836 · $70/mo
• Projected year-2 tax: $1,334 · $111/mo
• Expected delta: +$498/yr (+$42/mo · 59.6%)

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

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥96°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 4 by 30 yrs out

Taxation est. · year 1

• Rental income: $17,364
• − Mortgage interest: −$6,666
• − Property taxes: −$836
• − Insurance: −$595
• − Repairs & maintenance: −$1,389
• − Management: −$1,389
• − Depreciation: −$3,462
• Taxable income: $3,027
• Est. tax owed @ 24.0%: −$726
• After-tax cash flow: $4,071/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: Pontiac City School District
• NCES district ID: 2628740
• Math proficiency: 8% ▼ -5.00%
• Reading proficiency: 17% ▼ -3.00%
• Median HH income: $33,888
• Composite: 10.12/100
• National rank: #9802
• State rank: #514 of 540 in MI

Livability — Pontiac

• Score: 64/100
• State rank: #499
• US rank: #14703

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Pontiac, MI
• County: Oakland County · 1,009,092 people
• City population: 44,593
• Metro: Detroit-Warren-Dearborn, MI
• Population (ZIP): 18,924
• Household income: $51,390
• Rent vs Own: 46.6% rent · 53.4% own
• Severe rent burden: 833.0

Population outlook (Oakland County) Hauer SSP2

• Today (2025): 1,335,747 people
• By 2030: 1,375,100 · +2.9%
• By 2040: 1,435,385 · +7.5%
• By 2050: 1,469,250 · +10.0%
• By 2075: 1,531,946 · +14.7%
• By 2100: 1,450,485 · +8.6%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.61)
• Race & ethnicity: Black 57% White 22% Hispanic / Latino 12% Two or more races 11% Asian 3%
• Hispanic origin (detail): Mexican 4% Puerto Rican 2%
• Common ancestry: Slovak 2% Romanian 1% Swiss 1%
• Foreign-born: 10% · Canada
• Languages at home: 86% English-only · Spanish 9% Other Indo-European 1% Other Asian/Pacific 1%

Political lean MEDSL · Oakland

• 2024 margin: D (+10.6) · D 54.4% · R 43.8% · Other 1.9%
• 2008→2024 swing: -3.9pp toward R · 2008: 14.5pp · 2024: 10.6pp
• All cycles: 2024: D+10.6 2020: D+14.1 2016: D+8.1 2012: D+8.1 2008: D+14.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -204.11%
• Current HPI: 257.8941
• 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

+78.8% since first listed

19 events — show timeline

• 2026-06-12 Sold (MLS) $125,000 MiRealSource-MiMLS
• 2026-06-12 Sold (MLS) $125,000 REALCOMP
• 2026-05-04 Pending — MiRealSource-MiMLS
• 2026-05-04 Pending — REALCOMP
• 2026-04-30 Listed $119,000 MiRealSource-MiMLS
• 2026-04-30 Listed $119,000 REALCOMP
• 2026-04-29 Coming Soon $119,000 MiRealSource-MiMLS
• 2008-03-01 Listing Removed — REALCOMP
• 2008-03-01 Listing Removed — MiRealSource-MiMLS
• 2007-11-29 Listed $49,900 REALCOMP
• 2007-11-29 Listed $49,900 MiRealSource-MiMLS
• 2007-11-20 Listing Removed — MiRealSource-MiMLS
• 2007-11-20 Listing Removed — REALCOMP
• 2007-07-20 Listed $49,900 MiRealSource-MiMLS
• 2007-07-20 Listed $49,900 REALCOMP
• 2007-07-19 Listing Removed — MiRealSource-MiMLS
• 2007-07-19 Listing Removed — REALCOMP
• 2007-03-19 Listed $69,900 MiRealSource-MiMLS
• 2007-03-19 Listed $69,900 REALCOMP

Property tax history

+0.8%/yr

Latest (2025): $836 · +2.6% YoY. Source: county tax records.