N17375 Co Rd 579 Rd

Hermansville, MI 49847

$62,500B

3 bd · 1.0 ba · 1,015 sqft · Built — · SingleFamily · Active · 361 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,045/mo
• Mortgage (P&I): −$328
• Tax + insurance: −$104
• HOA: −$0
• Vac / Maint / Mgmt: −$219
• Net cashflow: $393/mo
• Annual: $4,721/yr
• Cap rate: 13.85%
• Cash-on-cash: 26.97%
• DSCR: 2.20
• 1% rule: 1.67%
• Cash to close: $17,500

Investor read

• This is a 3-bed/1.0-bath single-family listed at $62k. Condition is rated poor.
• At list price, monthly cash flow is $393 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $62k).
• It's been on market 361 days — a 12% lower offer ($55k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $55k (12.0% below list) — sets the bar for market timing.
• In year one you build about $1k of equity ($432 loan paydown + $931 appreciation (1.5% local appreciation)).
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• North Central Area Schools (rural): math 40% / reading 60% proficiency, ranked #202 of 760 in MI (top 27%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 6 active listings in the ZIP; 26 units permitted in Menominee County in 2024 (0 in 5+ unit buildings).
• Menominee County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 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.
• At projected returns (1.5% appreciation + 3.0% rent growth), your $18k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 361 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Rusted and damaged
• Major: exterior walls — Peeling paint and exposed drywall
• Major: flooring — Worn carpet and exposed subfloor
• Major: HVAC/mechanicals — Exposed ductwork and old appliances
• Major: landscaping — Overgrown vegetation and unkempt appearance