11624 Delbert Dr

Gaastra, MI 54542

$111,000D+

2 bd · 1.0 ba · 980 sqft · Built 1992 · Other · Active · 53 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $885/mo
• Mortgage (P&I): −$582
• Tax + insurance: −$128
• HOA: −$0
• Vac / Maint / Mgmt: −$186
• Net cashflow: $-11/mo
• Annual: $-126/yr
• Cap rate: 6.18%
• Cash-on-cash: -0.41%
• DSCR: 0.98
• 1% rule: 0.80%
• Cash to close: $31,080

Investor read

• This is a 2-bed/1.0-bath other listed at $111k.
• At list price, monthly cash flow is $-11 ($-126/yr) — negative.
• To cash-flow at today's rent, offer at most $109k (1.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $89k (20.2% below list).
• It's been on market 53 days — a 3% lower offer ($108k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $89k (20.2% below list) — sets the bar for 1% rule.
• In year one you build about $11k of equity ($767 loan paydown + $10k appreciation (8.9% local appreciation)).
• Location reads 63/100 on livability (#509 in MI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, amenities F, commute F.
• Florence County School District (rural): math 35% / reading 40% proficiency, ranked #293 of 426 in WI (top 69%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Florence Elementary (math 37% / reading 32%, grade F, #610 of 1,041 statewide, top 63%, 211 students, 48% FRL); Florence Middle (math 15% / reading 34%, grade F, #317 of 383 statewide, top 83%, 61 students, 36% FRL); Florence High (math 30% / reading 30%, grade F, #208 of 483 statewide, top 46%, 118 students, 44% FRL) — zoned schools at 43% FRL track the district average.
• Market conditions: 38 units permitted in Florence County in 2024 (5 in 5+ unit buildings).
• Florence County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 6 sale attempts since 12y 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.
• Current owner paid $82k; 36% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (8.9% appreciation + 3.0% rent growth), your $31k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 53 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F 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?
• 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.