1523 Saint Clair River Dr

Algonac, MI 48001

$595,000B-

56 bd · 49.0 ba · 4,565 sqft · Built 1995 · MultiFamily · Active · 349 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,006/mo
• Mortgage (P&I): −$3,120
• Tax + insurance: −$992
• HOA: −$0
• Vac / Maint / Mgmt: −$1,891
• Net cashflow: $3,003/mo
• Annual: $36,034/yr
• Cap rate: 12.35%
• Cash-on-cash: 21.63%
• DSCR: 1.96
• 1% rule: 1.51%
• Cash to close: $166,600

Investor read

• This is a 7 × 8-bed/?-bath units multifamily listed at $595k.
• At list price, monthly cash flow is $3k ($36k/yr) — positive. Per door: $429/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($9k rent vs $595k).
• It's been on market 349 days — a 12% lower offer ($524k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $524k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $18k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#524 in MI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: schools F, amenities F, commute F.
• Algonac Community School District (suburban): math 30% / reading 40% proficiency, ranked #273 of 540 in MI (top 51%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 128 active listings in the ZIP; 232 units permitted in St. Clair County in 2024 (0 in 5+ unit buildings).
• St. Clair County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 20 sale attempts since 28y ago; this cycle's ask has dropped $200k (25%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $167k cash investment doubles in ~6 years — after that, you're playing with house money.
• Cap rate 12.3% vs local median 1.7% in Algonac — 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

• It's been on market 349 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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.
• 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?
• 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.