The Oakwood Plan

Georgetown, MI 49428

$423,100F

4 bd · 2.5 ba · 2,205 sqft · Built — · SingleFamily · Active · 379 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,357/mo
• Mortgage (P&I): −$3,101
• Tax + insurance: −$985
• HOA: −$0
• Vac / Maint / Mgmt: −$915
• Net cashflow: $-644/mo
• Annual: $-7,730/yr
• Cap rate: 4.99%
• Cash-on-cash: -4.67%
• DSCR: 0.79
• 1% rule: 0.74%
• Cash to close: $165,564

Investor read

• This is a 4-bed/2.5-bath single-family listed at $423k. Condition is rated excellent.
• At list price, monthly cash flow is $-644 ($-8k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $423k).
• It's been on market 379 days — a 12% lower offer ($372k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $372k (12.0% below list) — sets the bar for market timing.
• 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.
• Market conditions: 142 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 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.

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 379 days. Have you received any prior offers? Is the seller open to a 12% 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.