27561 Concord Ave

Warren, MI 48093

$95,900D

2 bd · 1.5 ba · 1,000 sqft · Built 1965 · Condo · Pending · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,415/mo
• Mortgage (P&I): −$503
• Tax + insurance: −$160
• HOA: −$500
• Vac / Maint / Mgmt: −$297
• Net cashflow: $-45/mo
• Annual: $-539/yr
• Cap rate: 5.73%
• Cash-on-cash: -2.01%
• DSCR: 0.91
• 1% rule: 1.48%
• Cash to close: $26,852

Investor read

• This is a 2-bed/1.5-bath condo listed at $96k. Condition is rated fair.
• At list price, monthly cash flow is $-45 ($-539/yr) — negative.
• To cash-flow at today's rent, offer at most $89k (6.8% below list).
• Meets the 1% rule at list price ($1k rent vs $96k).
• It's been on market 15 days — a 2% lower offer ($94k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $89k (6.8% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $663 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• 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: amenities D, employment D, crime D-.
• Center Line Public Schools (suburban): math 14% / reading 29% proficiency, ranked #459 of 540 in MI (top 85%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 60% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Crothers Elementary School (math 8% / reading 22%, grade F, #1,172 of 1,397 statewide, top 85%, 341 students, 79% FRL); Wolfe Middle School (math 13% / reading 31%, grade F, #408 of 493 statewide, top 84%, 500 students, 72% FRL); Center Line High School (math 12% / reading 37%, grade F, #481 of 713 statewide, top 81%, 663 students, 67% FRL).
• Watch-outs: HOA is 35% of rent.
• Market conditions: Rents rising (+2.5%/yr); 128 active listings in the ZIP; 18 comparable units currently listed for rent nearby; rentals at typical pace (median 27d on market — plan ~3-4 weeks tenant-placement turnaround); 1,321 units permitted in Macomb County in 2024 (86 in 5+ unit buildings).
• Macomb County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts 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.

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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?
• 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?

Repairs flagged (vision-AI assessment)

• Major: Brick facade — Significant wear and discoloration.
• Major: Carpeted flooring — Worn and stained, needs replacement.
• Major: Paint — Chipped and uneven, needs repainting.
• Major: Kitchen cabinets and countertops — Worn and outdated, needs replacement or renovation.
• Major: Bathroom fixtures and tiles — Dated and worn, needs replacement or renovation.
• Major: Windows — Old and may need replacement for better energy efficiency and appearance.