4402 Pelham Rd · Dearborn Heights, MI 48125

$100,000

3 bd · 1.0 ba · 887 sqft · SingleFamily public records · 2 Days on market

Built 1940 3,920 sqft lot Est $137k · 27% under

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Why this score? — see what drove the B+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• ARV discount +15.0/15.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Livability +4.0/5.0
• Rent growth +3.0/5.0
• Condition / age +2.5/5.0
• Schools +1.7/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

3 Bedroom, 1 Bathroom Bungalow on large corner lot, large living room, large second floor bedroom with plenty of closet space, new roof and chimney (approximately 2 years) The home is in need of updating, and has a lot of potential. It is perfect for a buyer looking for a fixer upper that is not afraid of sweat equity. This is a great investment. Agent is related to seller.

Key facts

• 3,920 sq ft lot
• Built 1940
• Listed 2 days

Property features AI

Finance

• HOA & community: Homeowners association present

Exterior

• Utilities: Public water; Public sewer
• Home design: Single-family residence; One and a half stories
• Construction: Aluminum siding
• Exterior features: Lot about 0.09 acres (3,920 sq ft); No pool

Interior

• Kitchen: Oven, Refrigerator, Range
• Bathrooms: One full bathroom
• Heating & cooling: Forced air heating (natural gas); Wall/window air conditioning
• Interior features: Oven, Refrigerator, Range; Has basement; Six total rooms

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $100k.

Deal economics

• At list price, monthly cash flow is $668 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $100k).
• Cap rate 14.3% vs local median 5.5% in Dearborn 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.

Location & tenants

• Location reads 79/100 on livability (#82 in MI, #1,885 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: schools C-, crime D+, employment D+.
• Dearborn Heights School District #7 (suburban): math 13% / reading 26% proficiency, ranked #466 of 540 in MI (top 86%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 60% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising (+2.0%/yr); 137 active listings in the ZIP; 15 comparable units currently listed for rent nearby; rentals leasing fast (median 11d on market — plan ~1-2 weeks tenant-placement turnaround); 2,639 units permitted in Wayne County in 2024 (1,216 in 5+ unit buildings).
• This rent runs 33% of the median local income ($60k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $691 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Wayne County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 2.0% rent growth), your $28k cash investment doubles in ~5 years — after that, you're playing with house money.

Negotiation context

• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• 3 sale attempts since 19y 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.

Risks & watch-outs

• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $100,000

Questions for the listing agent

1. Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
4. 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.
5. 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.
6. 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.

Investment metrics

• 1% rule: 1.67% ✓
• Cap rate: 14.30%
• Cash-on-cash: 28.61%
• DSCR: 2.27
• GRM: 5.0

CMA / ARV

• ARV (on-the-fly): $137,485
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
4694 Ziegler St	0.22mi	3/1.0	884 (-0%)	3mo	$144,899	$164	87
5636 Hipp St	0.64mi	3/1.0	894 (+1%)	1mo	$121,300	$136	68
4932 Pelham St	0.27mi	3/1.0	1,000 (+13%)	0mo	$170,000	$170	66
4012 Weddell St	0.24mi	3/1.0	1,007 (+14%)	1mo	$220,000	$218	65
3935 Campbell St	0.70mi	3/1.0	914 (+3%)	2mo	$195,000	$213	60
4401 Hipp St	0.34mi	3/1.5	1,011 (+14%)	2mo	$90,000	$89	57
4976 Weddell St	0.36mi	3/1.0	1,012 (+14%)	3mo	$180,000	$178	57
4913 Campbell St	0.71mi	3/1.0	936 (+6%)	4mo	$125,000	$134	55
4630 Gertrude St	0.65mi	2/1.0 (-1)	839 (-5%)	2mo	$100,600	$120	54
20313 Powers Ave	0.43mi	2/1.0 (-1)	992 (+12%)	4mo	$117,000	$118	52
4408 Gertrude St	0.63mi	3/1.0	1,000 (+13%)	1mo	$155,000	$155	48
5839 Balfour Ave	0.68mi	3/1.0	998 (+12%)	2mo	$150,000	$150	46

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 2.03% rent growth · sell at horizon

5-year hold

• IRR: 21.8%
• Equity multiple: 1.88×
• Total profit: $24,707
• Equity at exit: $14,910

10-year hold

• IRR: 29.3%
• Equity multiple: 3.49×
• Total profit: $69,780
• Equity at exit: $8,646

Cash invested: $28,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 62 Landlord-Friendly
• State Michigan: 62 Landlord-Friendly · EVEN
• County: — inherits STATE
• City: — inherits STATE

7-day pay-or-quit; mixed climate; Detroit/AA have some protections.

Methodology + full state rankings →

ZIP-level market 48125

• Rents YoY: 2.0%
• Active inventory: 137
• Price-to-rent: 5.0×

Monthly cashflow live

• Estimated rent: $1,669 high
• Mortgage (P&I): −$524
• Tax from tax record: −$85 /mo · $1,017/yr
• Insurance: −$42
• HOA: −$0
• Vacancy / Maint / Mgmt: −$350
• Net cashflow: $668

Break-even live

Break-even rent $824

Max offer price $100,000

Occupancy floor 55%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $25,000
• Closing costs: $3,000
• Reserves months: —
• Total cash needed: —

Rent comps 15 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
4631 Ziegler St Dearborn Heights, MI	3.0	1.0	1050	$1,650	$1.57	44d	1	0.17mi
4681 Weddell St Dearborn Heights, MI	3.0	1.0	860	$1,600	$1.86	2d	1	0.25mi
4704 Jackson St Dearborn Heights, MI	3.0	1.0	1000	$1,500	$1.50	22d	1	0.25mi
5371 Culver St Dearborn Heights, MI	3.0	1.0	980	$1,500	$1.53	11d	1	0.54mi
5371 Culver St Dearborn Heights, MI	3.0	1.0	980	$1,450	$1.48	2d	1	0.54mi
20728 Carlysle St Dearborn, MI	3.0	1.0	1087	$1,850	$1.70	2d	1	0.59mi
4638 Gertrude St Dearborn Heights, MI	3.0	1.0	1020	$1,700	$1.67	5d	1	0.65mi
4914 Gertrude St Dearborn Heights, MI	2.0	1.0	908	$1,230	$1.35	17d	1	0.68mi
4810 Campbell St Dearborn Heights, MI	3.0	1.0	1000	$1,700	$1.70	2d	1	0.71mi
2631 Woodside St Dearborn, MI	3.0	1.0	894	$1,650	$1.85	2d	1	0.75mi
4757 Dudley St Dearborn Heights, MI	3.0	1.0	995	$1,350	$1.36	11d	1	0.86mi
3620 Monroe St Dearborn, MI	3.0	2.0	1100	$1,800	$1.64	10d	1	1.07mi
21337 Audette St Dearborn, MI	3.0	1.0	964	$1,850	$1.92	44d	1	1.14mi
4934 McKinley St Dearborn Heights, MI	3.0	1.0	1051	$1,700	$1.62	2d	1	1.15mi
4775 Willow Cove Blvd Allen Park, MI	1.0–2.0	1.0	805	$1,649	$2.05	24d	4	1.33mi

Listing history 4 events

1. 2026-05-27
   listed $100,000 Active

   Show marketing remark (376 chars)

   3 Bedroom, 1 Bathroom Bungalow on large corner lot, large living room, large second floor bedroom with plenty of closet space, new roof and chimney (approximately 2 years) The home is in need of updating, and has a lot of potential. It is perfect for a buyer looking for a fixer upper that is not afraid of sweat equity. This is a great investment. Agent is related to seller.

2. 2026-05-27
   listed $100,000 Active 376-char remark

   Show marketing remark (376 chars)

   3 Bedroom, 1 Bathroom Bungalow on large corner lot, large living room, large second floor bedroom with plenty of closet space, new roof and chimney (approximately 2 years) The home is in need of updating, and has a lot of potential. It is perfect for a buyer looking for a fixer upper that is not afraid of sweat equity. This is a great investment. Agent is related to seller.

3. 2007-12-27
   historical
4. 2007-10-05
   listed $47,500

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast MI · Partial reset (capped growth)

• Current annual tax: $1,017 · $85/mo
• Projected year-2 tax: $1,278 · $107/mo
• Expected delta: +$262/yr (+$22/mo · 25.7%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 3/10 Moderate 7 d/yr ≥98°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 4 by 30 yrs out

Taxation est. · year 1

• Rental income: $20,028
• − Mortgage interest: −$5,602
• − Property taxes: −$1,017
• − Insurance: −$500
• − Repairs & maintenance: −$1,602
• − Management: −$1,602
• − Depreciation: −$2,909
• Taxable income: $6,796
• Est. tax owed @ 24.0%: −$1,631
• After-tax cash flow: $6,381/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Dearborn Heights School District #7
• NCES district ID: 2611610
• Math proficiency: 13% ▼ -10.00%
• Reading proficiency: 26% ▼ -7.00%
• Median HH income: $47,468
• Composite: 17.21/100
• National rank: #9101
• State rank: #466 of 540 in MI

Livability — Dearborn Heights

• Score: 79/100
• State rank: #82
• US rank: #1885

Category grades

Amenities B- Commute A+ Cost of living A+ Crime D+ Employment D+ Housing A+ Health & safety D+ User ratings A-

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Dearborn Heights, MI
• County: Wayne County · 1,562,939 people
• City population: 61,771
• Metro: Detroit-Warren-Dearborn, MI
• Population (ZIP): 22,125
• Household income: $60,195
• Rent vs Own: 32.1% rent · 67.9% own
• Severe rent burden: 654.0

Population outlook (Wayne County) Hauer SSP2

• Today (2025): 1,675,273 people
• By 2030: 1,620,300 · -3.3%
• By 2040: 1,502,341 · -10.3%
• By 2050: 1,384,039 · -17.4%
• By 2075: 1,124,592 · -32.9%
• By 2100: 881,193 · -47.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (76%)
• Race & ethnicity: White 76% Black 10% Two or more races 9% Hispanic / Latino 9%
• Hispanic origin (detail): Mexican 6%
• Common ancestry: Romanian 11% Arab 3% Slovak 2%
• Foreign-born: 11% · Canada
• Languages at home: 82% English-only · Arabic 13% Spanish 3% Russian/Polish/Slavic 1%

Political lean MEDSL · Wayne

• 2024 margin: Strong D (+29.0) · D 62.7% · R 33.7% · Other 3.6%
• 2008→2024 swing: -20.5pp toward R · 2008: 49.5pp · 2024: 29.0pp
• All cycles: 2024: D+29.0 2020: D+38.1 2016: D+37.3 2012: D+46.9 2008: D+49.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -214.70%
• Current HPI: 218.4698
• Rent YoY: ▲ 2.03%
• Metro: Detroit-Warren-Dearborn, MI
• State GDP YoY: ▲ 1.37%
• F500 in state: 28

Industry mix (Fortune 500 HQ in MI)

Industry	F500 HQs	Revenue
▸Automotive Parts	3	$48B
▸Automotive	2	$372B
▸Chemicals	1	$45B
▸Automotive Retail	1	$29B
▸Healthcare / Medical Devices	1	$23B
▸Automotive Technology	1	$20B

Price history

+110.5% since first listed

4 events — show timeline

• 2026-05-27 Listed $100,000 REALCOMP
• 2026-05-27 Listed $100,000 MiRealSource-MiMLS
• 2007-12-27 Listing Removed — REALCOMP
• 2007-10-05 Listed $47,500 REALCOMP

Property tax history

-0.7%/yr

Latest (2025): $1,017 · -26.9% YoY. Source: county tax records.