42231 Ladywood Dr

Plymouth, MI 48168

$575,000F

4 bd · 2.5 ba · 2,241 sqft · Built 1970 · SingleFamily · Pending · 22 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,498/mo
• Mortgage (P&I): −$3,015
• Tax + insurance: −$716
• HOA: −$20
• Vac / Maint / Mgmt: −$735
• Net cashflow: $-988/mo
• Annual: $-11,855/yr
• Cap rate: 4.23%
• Cash-on-cash: -7.36%
• DSCR: 0.67
• 1% rule: 0.61%
• Cash to close: $161,000

Investor read

• This is a 4-bed/2.5-bath single-family listed at $575k.
• At list price, monthly cash flow is $-988 ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $400k (30.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $350k (39.2% below list).
• It's been on market 22 days — a 2% lower offer ($566k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $350k (39.2% 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 $17k of value loss. Plan a longer hold.
• Location reads 85/100 on livability (#25 in MI, #516 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, employment A+; Watch: commute F.
• Northville Public Schools (suburban): math 68% / reading 75% proficiency, ranked #4 of 540 in MI (top 1%) — strong family-tenant draw, lease renewals of 3-5y typical; only 4% free/reduced lunch — higher-income household profile.
• Market conditions: 145 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 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.
• 4 sale attempts since 28y ago 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.
• Current owner paid $245k; list at $575k implies a 135% gain — meaningful room to come down on a strong offer.
• Cap rate 4.2% vs local median 3.1% in Plymouth — 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?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?
• 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.