3 bd · 1.0 ba ·
974 sqft ·
Built 1951
· SingleFamily
· Pending
· 61 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$1,262/mo
Mortgage (P&I)
−$420
Tax + insurance
−$116
HOA
−$0
Vac / Maint / Mgmt
−$265
Net cashflow
$461/mo
Annual
$5,532/yr
Cap rate
13.21%
Cash-on-cash
24.70%
DSCR
2.10
1% rule
1.58%
Cash to close
$22,400
Investor read
This is a 3-bed/1.0-bath single-family listed at $80k.
At list price, monthly cash flow is $461 ($6k/yr) — positive.
The deal already cash-flows at list — no discount required.
Meets the 1% rule at list price ($1k rent vs $80k).
It's been on market 61 days — a 6% lower offer ($75k) is reasonable based on typical stale-listing flexibility.
Recommended offer: $75k (6.0% below list) — sets the bar for market timing.
Local home prices are declining (-3.0%/yr); year-one equity from $553 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
Location reads 73/100 on livability (#218 in MI) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, cost of living A+; Watch: schools F, crime F, employment F.
Detroit Public Schools Community District (urban): math 10% / reading 24% proficiency, ranked #499 of 540 in MI (top 92%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 90% free/reduced lunch — lower-income household profile, screen leases tightly.
Watch-outs: built in 1951 — expect roof / HVAC / electrical / plumbing capex.
Market conditions: Rents rising fast (+8.0%/yr); 305 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); 45% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
3 sale attempts since 21y ago; this cycle's ask has dropped $15k (16%) from the opening price — seller is motivated, your offer sets the floor, not the list.
At projected returns (-3.0% appreciation + 8.0% rent growth), your $22k cash investment doubles in ~5 years — after that, you're playing with house money.
Cap rate 13.2% vs local median 10.2% in Detroit — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
This rent runs 35% of the median local income ($44k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.
Questions for listing agent
It's been on market 61 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
Built in 1951 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
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 F-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 F 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?
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.
CashFlowRE · CFR-N2H3ZJC69HE0VC
· Data 2 weeks agocashflowre.app · 2026-05-29