8573 Elkrun Dr

Independence, MI 48348

$164,900B-

4 bd · 3.5 ba · 3,409 sqft · Built 1989 · SingleFamily · Active · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,257/mo
• Mortgage (P&I): −$865
• Tax + insurance: −$275
• HOA: −$0
• Vac / Maint / Mgmt: −$474
• Net cashflow: $644/mo
• Annual: $7,724/yr
• Cap rate: 10.98%
• Cash-on-cash: 16.73%
• DSCR: 1.74
• 1% rule: 1.37%
• Cash to close: $46,172

Investor read

• This is a 4-bed/3.5-bath single-family listed at $165k.
• At list price, monthly cash flow is $644 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $165k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Clarkston Community School District (suburban): math 48% / reading 58% proficiency, ranked #69 of 540 in MI (top 13%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 16% free/reduced lunch — higher-income household profile.
• Zoned schools: Independence Elementary School (math 52% / reading 57%, grade C, #276 of 1,397 statewide, top 22%, 439 students, 14% FRL); Sashabaw Middle School (math 42% / reading 52%, grade D+, #143 of 493 statewide, top 30%, 984 students, 24% FRL); Clarkston High School (math 51% / reading 69%, grade C+, #73 of 713 statewide, top 11%, 1,575 students, 17% FRL) — zoned schools at 18% FRL track the district average.
• Market conditions: 153 active listings in the ZIP; 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.
• 19 sale attempts since 29y ago; this cycle's ask has dropped $635k (79%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $46k cash investment doubles in ~8 years — after that, you're playing with house money.

Questions for listing agent

• 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.