Integrity 1830 Plan

Byron, MI 49315

$440,770F

4 bd · 2.5 ba · 1,830 sqft · Built — · SingleFamily · Active · 289 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,305/mo
• Mortgage (P&I): −$2,671
• Tax + insurance: −$849
• HOA: −$0
• Vac / Maint / Mgmt: −$694
• Net cashflow: $-909/mo
• Annual: $-10,910/yr
• Cap rate: 4.15%
• Cash-on-cash: -7.65%
• DSCR: 0.66
• 1% rule: 0.65%
• Cash to close: $142,621

Investor read

• This is a 4-bed/2.5-bath single-family listed at $441k.
• At list price, monthly cash flow is $-909 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $378k (14.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $330k (25.0% below list).
• It's been on market 289 days — a 12% lower offer ($388k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $330k (25.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#410 in MI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment B; Watch: crime D+, amenities F, commute F.
• Byron Center Public Schools (suburban): math 69% / reading 73% proficiency, ranked #15 of 540 in MI (top 3%) — strong family-tenant draw, lease renewals of 3-5y typical; only 20% free/reduced lunch — higher-income household profile.
• Market conditions: 285 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.
• Cap rate 4.2% vs local median 1.7% in Byron — 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.

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 289 days. Have you received any prior offers? Is the seller open to a 25% 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 B-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?
• 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?
• 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.