2441 Holbrook St

Hamtramck, MI 48212

$389,900D+

8 bd · 4.0 ba · 3,036 sqft · Built 1914 · MultiFamily · Active · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,398/mo
• Mortgage (P&I): −$2,045
• Tax + insurance: −$650
• HOA: −$0
• Vac / Maint / Mgmt: −$924
• Net cashflow: $780/mo
• Annual: $9,359/yr
• Cap rate: 8.69%
• Cash-on-cash: 8.57%
• DSCR: 1.38
• 1% rule: 1.13%
• Cash to close: $109,172

Investor read

• This is a 4 × 2-bed/1-bath units multifamily listed at $390k. Condition is rated fair.
• At list price, monthly cash flow is $780 ($9k/yr) — positive. Per door: $195/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $390k).
• It's been on market 26 days — a 2% lower offer ($384k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $384k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#88 in MI, #2,005 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, cost of living A+; Watch: crime D, schools D-, employment F.
• Hamtramck School District (suburban): math 9% / reading 17% proficiency, ranked #519 of 540 in MI (top 96%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 86% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1914 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 170 active listings in the ZIP; lower-income renter base — watch delinquency; 2,639 units permitted in Wayne County in 2024 (1,216 in 5+ unit buildings).
• Wayne County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $35k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 8.7% vs local median 4.3% in Hamtramck — 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.
• At $4,398/mo this rent would consume 138% of the median local household income ($38k/yr) (locally 1175% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1914 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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?

Repairs flagged (vision-AI assessment)

• Major: Exterior siding — Significant weathering and discoloration.
• Minor: Landscaping — Some overgrown areas need trimming and care.