The Harper Plan

Georgetown, MI 49428

$498,400F

4 bd · 2.5 ba · 2,450 sqft · Built — · SingleFamily · Active · 522 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,433/mo
• Mortgage (P&I): −$3,133
• Tax + insurance: −$996
• HOA: −$0
• Vac / Maint / Mgmt: −$721
• Net cashflow: $-1,417/mo
• Annual: $-17,007/yr
• Cap rate: 3.45%
• Cash-on-cash: -10.17%
• DSCR: 0.55
• 1% rule: 0.57%
• Cash to close: $167,304

Investor read

• This is a 4-bed/2.5-bath single-family listed at $498k. Condition is rated good.
• At list price, monthly cash flow is $-1k ($-17k/yr) — negative.
• To cash-flow at today's rent, offer at most $392k (21.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $343k (31.1% below list).
• It's been on market 522 days — a 12% lower offer ($439k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $343k (31.1% 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 $18k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Hudsonville Public School District (suburban): math 55% / reading 70% proficiency, ranked #32 of 540 in MI (top 6%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Georgetown Elementary School (math 67% / reading 74%, grade A-, #70 of 1,397 statewide, top 5%, 581 students, 10% FRL); Baldwin Street Middle School (math 48% / reading 73%, grade B+, #51 of 493 statewide, top 11%, 844 students, 13% FRL); Hudsonville High School (math 52% / reading 68%, grade C+, #73 of 713 statewide, top 11%, 1,513 students, 12% FRL) — zoned schools at 11% FRL track the district average.
• Market conditions: 292 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals leasing fast (median 1d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 1,237 units permitted in Ottawa County in 2024 (443 in 5+ unit buildings).
• Ottawa County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• This rent runs 45% of the median local income ($92k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 522 days. Have you received any prior offers? Is the seller open to a 31% 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.
• 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.
• 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.