179 E Long Lake Rd

Bloomfield Hills, MI 48304

$318,800D

3 bd · 2.5 ba · 2,131 sqft · Built 1972 · Condo · Pending · 45 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,038/mo
• Mortgage (P&I): −$1,672
• Tax + insurance: −$440
• HOA: −$350
• Vac / Maint / Mgmt: −$638
• Net cashflow: $-62/mo
• Annual: $-749/yr
• Cap rate: 6.06%
• Cash-on-cash: -0.84%
• DSCR: 0.96
• 1% rule: 0.95%
• Cash to close: $89,264

Investor read

• This is a 3-bed/2.5-bath condo listed at $319k.
• At list price, monthly cash flow is $-62 ($-749/yr) — negative.
• To cash-flow at today's rent, offer at most $308k (3.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $304k (4.7% below list).
• It's been on market 45 days — a 3% lower offer ($309k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $304k (4.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#263 in MI) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A-; Watch: commute D+, amenities F, cost of living F.
• Bloomfield Hills Schools (suburban): math 65% / reading 74% proficiency, ranked #5 of 540 in MI (top 1%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 7% free/reduced lunch — higher-income household profile.
• Zoned schools: Eastover Elementary School (math 82% / reading 77%, grade A, #21 of 1,397 statewide, top 2%, 456 students, 16% FRL); East Hills Middle School (math 62% / reading 70%, grade A-, #35 of 493 statewide, top 7%, 571 students, 16% FRL); Bloomfield Hills High School (math 59% / reading 82%, grade B+, #32 of 713 statewide, top 4%, 1,598 students, 14% FRL).
• Market conditions: 132 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• 2 sale attempts; this cycle's ask has dropped $23k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $257k; 24% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 6.1% vs local median 0.8% in Bloomfield Hills — 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 45 days. Have you received any prior offers? Is the seller open to a 5% concession, seller financing, or rate buy-down credit?
• Built in 1972 — 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?
• 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?
• 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?