47630 Van Dyke denwood

Sterling Heights, MI 48312

$84,900B

2 bd · 1.0 ba · 930 sqft · Built 1965 · SingleFamily · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,539/mo
• Mortgage (P&I): −$445
• Tax + insurance: −$568
• HOA: −$260
• Vac / Maint / Mgmt: −$323
• Net cashflow: $-58/mo
• Annual: $-694/yr
• Cap rate: 11.50%
• Cash-on-cash: 18.61%
• DSCR: 1.83
• 1% rule: 1.81%
• Cash to close: $23,772

Investor read

• This is a 2-bed/1.0-bath single-family listed at $85k. Condition is rated good.
• At list price, monthly cash flow is $-58 ($-694/yr) — negative.
• To cash-flow at today's rent, offer at most $77k (9.9% below list).
• Meets the 1% rule at list price ($2k rent vs $85k).
• It's been on market 20 days — a 2% lower offer ($84k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $77k (9.9% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $587 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#173 in MI, #4,545 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: health & safety D+, amenities F.
• Utica Community Schools (suburban): math 38% / reading 53% proficiency, ranked #126 of 540 in MI (top 23%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Bruce Collins Elementary School (math 37% / reading 49%, grade F, #540 of 1,397 statewide, top 39%, 428 students, 57% FRL); Heritage Junior High School (math 39% / reading 49%, grade D, #173 of 493 statewide, top 36%, 448 students, 51% FRL); Adlai Stevenson High School (math 32% / reading 54%, grade F, #260 of 713 statewide, top 37%, 1,977 students, 55% FRL) — zoned schools average 54% FRL vs 26% district-wide (29 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 138 active listings in the ZIP; 10 comparable units currently listed for rent nearby; rentals leasing fast (median 8d on market — plan ~1-2 weeks tenant-placement turnaround); 1,321 units permitted in Macomb County in 2024 (86 in 5+ unit buildings).
• Macomb County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.5% vs local median 3.9% in Sterling Heights — 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 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• 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.