41272 Lehigh Ct

Northville, MI 48167

$220,000D-

3 bd · 1.5 ba · 1,368 sqft · Built 1971 · Condo · Pending · 145 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,014/mo
• Mortgage (P&I): −$1,154
• Tax + insurance: −$277
• HOA: −$531
• Vac / Maint / Mgmt: −$423
• Net cashflow: $-371/mo
• Annual: $-4,455/yr
• Cap rate: 4.27%
• Cash-on-cash: -7.23%
• DSCR: 0.68
• 1% rule: 0.92%
• Cash to close: $61,600

Investor read

• This is a 3-bed/1.5-bath condo listed at $220k.
• At list price, monthly cash flow is $-371 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $154k (29.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $201k (8.5% below list).
• It's been on market 145 days — a 12% lower offer ($194k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $154k (29.8% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 88/100 on livability (#13 in MI, #205 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, employment A+; Watch: commute F.
• Northville Public Schools (suburban): math 68% / reading 75% proficiency, ranked #4 of 540 in MI (top 1%) — strong family-tenant draw, lease renewals of 3-5y typical; only 4% free/reduced lunch — higher-income household profile.
• Zoned schools: Silver Springs Elementary School (math 62% / reading 62%, grade B, #160 of 1,397 statewide, top 13%, 354 students, 19% FRL); Meads Mill Middle School (math 65% / reading 74%, grade A, #28 of 493 statewide, top 6%, 671 students, 9% FRL); Northville High School (math 68% / reading 86%, grade A-, #11 of 713 statewide, top 2%, 2,499 students, 7% FRL).
• Watch-outs: HOA is 26% of rent.
• Market conditions: Rents rising (+4.0%/yr); 222 active listings in the ZIP; 16 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; 2,639 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.
• 6 sale attempts since 8y ago; this cycle's ask has dropped $19k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 4.3% vs local median 1.8% in Northville — 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 145 days. Have you received any prior offers? Is the seller open to a 30% concession, seller financing, or rate buy-down credit?
• Built in 1971 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 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?