2738 Berry Dr

Bloomfield Hills, MI 48304

$399,900D

3 bd · 2.5 ba · 2,010 sqft · Built 1961 · SingleFamily · Active · 39 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,437/mo
• Mortgage (P&I): −$2,097
• Tax + insurance: −$686
• HOA: −$0
• Vac / Maint / Mgmt: −$722
• Net cashflow: $-69/mo
• Annual: $-823/yr
• Cap rate: 6.09%
• Cash-on-cash: -0.73%
• DSCR: 0.97
• 1% rule: 0.86%
• Cash to close: $111,972

Investor read

• This is a 3-bed/2.5-bath single-family listed at $400k.
• At list price, monthly cash flow is $-69 ($-823/yr) — negative.
• To cash-flow at today's rent, offer at most $388k (3.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $344k (14.1% below list).
• It's been on market 39 days — a 3% lower offer ($388k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $344k (14.1% below list) — sets the bar for 1% rule.
• 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 72/100 on livability (#263 in MI) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A-; Watch: commute D+, amenities F, cost of living F.
• Bloomfield Hills Schools (suburban): math 65% / reading 74% proficiency, ranked #5 of 540 in MI (top 1%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 7% free/reduced lunch — higher-income household profile.
• Zoned schools: Eastover Elementary School (math 82% / reading 77%, grade A, #21 of 1,397 statewide, top 2%, 456 students, 16% FRL); East Hills Middle School (math 62% / reading 70%, grade A-, #35 of 493 statewide, top 7%, 571 students, 16% FRL); Bloomfield Hills High School (math 59% / reading 82%, grade B+, #32 of 713 statewide, top 4%, 1,598 students, 14% FRL).
• Market conditions: 134 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals leasing fast (median 7d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 2,614 units permitted in Oakland County in 2024 (721 in 5+ unit buildings).
• Oakland County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 22 sale attempts since 25y 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 $232k; list at $400k implies a 72% gain — meaningful room to come down on a strong offer.
• Cap rate 6.1% vs local median 0.7% in Bloomfield Hills — 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 39 days. Have you received any prior offers? Is the seller open to a 14% concession, seller financing, or rate buy-down credit?
• Built in 1961 — 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 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.