Traditions 1600 V8.0b Plan

Caledonia, MI 49302

$461,205F

3 bd · 2.0 ba · 1,658 sqft · Built — · SingleFamily · Active · 475 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,300/mo
• Mortgage (P&I): −$2,947
• Tax + insurance: −$937
• HOA: −$0
• Vac / Maint / Mgmt: −$483
• Net cashflow: $-2,067/mo
• Annual: $-24,806/yr
• Cap rate: 1.88%
• Cash-on-cash: -15.76%
• DSCR: 0.30
• 1% rule: 0.41%
• Cash to close: $157,372

Investor read

• This is a 3-bed/2.0-bath single-family listed at $461k.
• At list price, monthly cash flow is $-2k ($-25k/yr) — negative.
• To cash-flow at today's rent, offer at most $263k (43.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $230k (50.1% below list).
• It's been on market 475 days — a 12% lower offer ($406k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $230k (50.1% below list) — sets the bar for 1% rule.
• In year one you build about $33k of equity ($4k loan paydown + $29k appreciation (5.2% local appreciation)).
• Location reads 78/100 on livability (#101 in MI, #2,449 nationally) — a middle-class / working-renter tenant base. Strengths: schools A+, crime A+, employment A+; Watch: amenities F, commute F, health & safety F.
• Caledonia Community Schools (suburban): math 58% / reading 68% proficiency, ranked #26 of 540 in MI (top 5%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 13% free/reduced lunch — higher-income household profile.
• Market conditions: 76 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 2,253 units permitted in Kent County in 2024 (969 in 5+ unit buildings).
• Kent County population projected at +22% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 2, paydown + projected appreciation supports a ~$53k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 1.9% vs local median 2.5% in Caledonia — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 475 days. Have you received any prior offers? Is the seller open to a 50% concession, seller financing, or rate buy-down credit?
• 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 A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.