9433 Spinnaker St

Grayling, MI 49738

$77,500C-

1 bd · 1.0 ba · 651 sqft · Built 1948 · SingleFamily · Pending · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $776/mo
• Mortgage (P&I): −$406
• Tax + insurance: −$201
• HOA: −$0
• Vac / Maint / Mgmt: −$163
• Net cashflow: $6/mo
• Annual: $75/yr
• Cap rate: 8.33%
• Cash-on-cash: 7.27%
• DSCR: 1.32
• 1% rule: 1.00%
• Cash to close: $21,700

Investor read

• This is a 1-bed/1.0-bath single-family listed at $78k.
• At list price, monthly cash flow is $6 ($75/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($776 rent vs $78k).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $536 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#269 in MI) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Crawford Ausable Schools (town): math 43% / reading 50% proficiency, ranked #140 of 540 in MI (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Grayling Elementary School (math 42% / reading 42%, grade F, #547 of 1,397 statewide, top 41%, 638 students, 66% FRL); Grayling Middle School (math 48% / reading 52%, grade C, #117 of 493 statewide, top 25%, 461 students, 57% FRL); Grayling High School (math 47% / reading 72%, grade C+, #80 of 713 statewide, top 12%, 452 students, 50% FRL).
• Watch-outs: flood insurance adds $125/mo; built in 1948 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 162 active listings in the ZIP; 75 units permitted in Crawford County in 2024 (32 in 5+ unit buildings).
• Crawford County population projected at -22% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.3% vs local median 3.0% in Grayling — 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

• Built in 1948 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.