5685 Venice Rd

Frenchtown, MI 48166 9064

$129,000C+

3 bd · 1.0 ba · 1,274 sqft · Built 1935 · SingleFamily · Pending · 64 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,225/mo
• Mortgage (P&I): −$676
• Tax + insurance: −$540
• HOA: −$10
• Vac / Maint / Mgmt: −$257
• Net cashflow: $-259/mo
• Annual: $-3,106/yr
• Cap rate: 7.85%
• Cash-on-cash: 5.57%
• DSCR: 1.25
• 1% rule: 0.95%
• Cash to close: $36,120

Investor read

• This is a 3-bed/1.0-bath single-family listed at $129k.
• At list price, monthly cash flow is $-259 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $83k (35.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $122k (5.1% below list).
• It's been on market 64 days — a 6% lower offer ($121k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $83k (35.4% below list) — sets the bar for cash-flow.
• In year one you build about $5k of equity ($892 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• Jefferson Schools (Monroe) (rural): math 19% / reading 38% proficiency, ranked #358 of 540 in MI (top 66%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: North Elementary School (math 22% / reading 37%, grade F, #866 of 1,397 statewide, top 65%, 261 students, 52% FRL); Jefferson Middle School (math 14% / reading 34%, grade F, #396 of 493 statewide, top 81%, 400 students, 55% FRL); Jefferson High School (math 27% / reading 52%, grade F, #304 of 713 statewide, top 46%, 462 students, 48% FRL) — zoned schools average 52% FRL vs 36% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $427/mo; built in 1935 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 1 active listings in the ZIP; 264 units permitted in Monroe County in 2024 (40 in 5+ unit buildings).
• Monroe County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 9 sale attempts since 26y ago; this cycle's ask has dropped $24k (16%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $43k; list at $129k implies a 200% gain — meaningful room to come down on a strong offer.
• By year 7, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.

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 64 days. Have you received any prior offers? Is the seller open to a 35% concession, seller financing, or rate buy-down credit?
• Built in 1935 — 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.