120 N Farmer St · Otsego, MI 49078

$375,000

15 bd · 25.0 ba · 3,944 sqft · MultiFamily · 62 Days on market

Built 1870 3,049 sqft lot

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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
• DSCR +10.0/10.0
• 1% rule +9.3/10.0
• ARV discount +7.5/15.0
• Schools +4.1/10.0
• Livability +3.7/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 5 units. estimate disagrees with records

Listing remarks MLS

Turnkey investment opportunity in the heart of downtown Otsego! This 5-unit mixed-use building offers strong, consistent cash flow with a current gross income of $4,030/month and an impressively low expense ratio. A major bonus for investors--city-owned parking means reduced maintenance responsibilities and costs, as the municipality handles parking areas and sidewalks. The property features a versatile unit mix, including two approximately 950 sq ft main-floor commercial suites with excellent street presence, plus three residential units: a well-appointed 1-bedroom/1-bath apartment, a spacious 2-bedroom/1-bath unit, and a studio apartment. All units have seen significant updates, providing a clean, modern feel that attracts and retains quality tenants. Whether you're looking to expand your portfolio or secure a stable, income-producing asset, this property checks all the boxes. Fully occupied, professionally positioned, and truly turnkey--this is a rare opportunity to own alow-maintenance, passive income generator in a growing downtown market.

Key facts

• Significant updates
• Mixed-use building
• City-owned parking

Tags

• TURNKEY INVESTMENT OPPORTUNITY
• MIXED-USE BUILDING
• CITY-OWNED PARKING
• VERSATILE UNIT MIX
• MAIN-FLOOR COMMERCIAL SUITES
• SIGNIFICANT UPDATES

What this means for you Summary

Snapshot

• This is a 1×1bd/1ba + 1×2bd/1ba + 3×3bd/1ba units multifamily listed at $375k.

Deal economics

• At list price, monthly cash flow is $2k ($20k/yr) — positive. Per door: $332/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $375k).
• Recommended offer: $352k (6.0% below list) — sets the bar for market timing.
• Cap rate 11.6% vs local median 1.8% in Otsego — 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 73/100 on livability (#216 in MI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, schools A-; Watch: employment D+, amenities F, commute F.
• Otsego Public Schools (town): math 39% / reading 57% proficiency, ranked #118 of 540 in MI (top 22%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 76 active listings in the ZIP; 419 units permitted in Allegan County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $105k cash investment doubles in ~7 years — after that, you're playing with house money.

Negotiation context

• It's been on market 62 days — a 6% lower offer ($352k) is reasonable based on typical stale-listing flexibility.
• 12 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 1870 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $352,500 (6.0% below list)

Questions for the listing agent

1. It's been on market 62 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Built in 1870 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
5. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
6. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
7. 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?
8. 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.
9. 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.
10. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.43% ✓
• Cap rate: 11.60%
• Cash-on-cash: 18.96%
• DSCR: 1.84
• GRM: 5.8

CMA / ARV

No comps found within radius.

Projected returns pro-forma

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

5-year hold

• IRR: 10.8%
• Equity multiple: 1.43×
• Total profit: $44,956
• Equity at exit: $55,914

10-year hold

• IRR: 19.9%
• Equity multiple: 2.67×
• Total profit: $175,506
• Equity at exit: $32,423

Cash invested: $105,000 (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 49078

• Home prices YoY: -32.7%
• Active inventory: 76
• Price-to-rent: 32.9×

Monthly cashflow live

• Estimated rent: $5,380 medium
• Mortgage (P&I): −$1,967
• Tax est. 1.5%: −$469 /mo · $5,625/yr
• Insurance: −$156
• HOA: −$0
• Vacancy / Maint / Mgmt: −$1,130
• Net cashflow: $1,659

Break-even live

Break-even rent $3,280

Max offer price $375,000

Occupancy floor 64%

5-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
1× unit	1	1	$950
1× unit	2	1	$950
▸ 3× units	3	1	$3,480
Total (5 units)			$5,380

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: $93,750
• Closing costs: $11,250
• Reserves months: —
• Total cash needed: —

Listing history 39 events

1. 2026-06-18
   days on market $375,000 Active 62 DOM
2. 2026-06-17
   days on market $375,000 Active 61 DOM
3. 2026-06-16
   days on market $375,000 Active 60 DOM
4. 2026-06-15
   days on market $375,000 Active 59 DOM
5. 2026-06-14
   days on market $375,000 Active 57 DOM
6. 2026-06-13
   days on market $375,000 Active 56 DOM
7. 2026-06-10
   days on market $375,000 Active 54 DOM
8. 2026-06-09
   days on market $375,000 Active 53 DOM
9. 2026-06-08
   days on market $375,000 Active 52 DOM
10. 2026-06-07
    days on market $375,000 Active 51 DOM
11. 2026-06-05
    days on market $375,000 Active 48 DOM
12. 2026-06-02
    days on market $375,000 Active 46 DOM
13. 2026-06-01
    days on market $375,000 Active 45 DOM
14. 2026-05-31
    days on market $375,000 Active 44 DOM
15. 2026-05-30
    days on market $375,000 Active 43 DOM
16. 2026-04-17
    listed $375,000 Active 1060-char remark

    Show marketing remark (989 chars)

    Turnkey investment opportunity in the heart of downtown Otsego! This 5-unit mixed-use building offers strong, consistent cash flow with a current gross income of $4,030/month and an impressively low expense ratio. A major bonus for investors--city-owned parking means reduced maintenance responsibilities and costs, as the municipality handles parking areas and sidewalks. The property features a versatile unit mix, including two approximately 950 sq ft main-floor commercial suites with excellent street presence, plus three residential units: a well-appointed 1-bedroom/1-bath apartment, a spacious 2-bedroom/1-bath unit, and a studio apartment. All units have seen significant updates, providing a clean, modern feel that attracts and retains quality tenants. Whether you're looking to expand your portfolio or secure a stable, income-producing asset, this property checks all the boxes. Fully occupied, professionally positioned, and truly turnkey--this is a rare opportunity to own a

17. 2026-04-17
    listed $375,000 Active 989-char remark

    Show marketing remark (989 chars)

    Turnkey investment opportunity in the heart of downtown Otsego! This 5-unit mixed-use building offers strong, consistent cash flow with a current gross income of $4,030/month and an impressively low expense ratio. A major bonus for investors--city-owned parking means reduced maintenance responsibilities and costs, as the municipality handles parking areas and sidewalks. The property features a versatile unit mix, including two approximately 950 sq ft main-floor commercial suites with excellent street presence, plus three residential units: a well-appointed 1-bedroom/1-bath apartment, a spacious 2-bedroom/1-bath unit, and a studio apartment. All units have seen significant updates, providing a clean, modern feel that attracts and retains quality tenants. Whether you're looking to expand your portfolio or secure a stable, income-producing asset, this property checks all the boxes. Fully occupied, professionally positioned, and truly turnkey--this is a rare opportunity to own a

18. 2025-09-30
    historical
19. 2025-09-30
    status Active
20. 2025-09-29
    price $475,000
21. 2025-08-19
    historical
22. 2025-08-19
    status Active
23. 2025-06-17
    historical
24. 2025-06-17
    status Active
25. 2025-06-16
    price $560,000
26. 2025-06-14
    historical
27. 2025-06-14
    status Active
28. 2025-06-04
    historical
29. 2025-06-04
    status Active
30. 2025-06-03
    historical
31. 2025-06-03
    status Active
32. 2025-05-31
    historical
33. 2025-05-29
    listed $585,000 Active
34. 2022-05-06
    historical
35. 2022-02-23
    listed $345,000
36. 2020-05-31
    historical
37. 2020-01-13
    listed $279,000
38. 2014-09-25
    historical
39. 2007-05-07
    listed $134,900

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

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 3/10 Moderate
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $64,560
• − Mortgage interest: −$21,006
• − Property taxes: −$5,625
• − Insurance: −$1,875
• − Repairs & maintenance: −$5,165
• − Management: −$5,165
• − Depreciation: −$10,909
• Taxable income: $14,815
• Est. tax owed @ 24.0%: −$3,556
• After-tax cash flow: $16,348/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: Otsego Public Schools
• NCES district ID: 2627060
• Math proficiency: 39% ▼ -13.00%
• Reading proficiency: 57% ▼ -10.00%
• Median HH income: $52,776
• Composite: 41.32/100
• National rank: #3507
• State rank: #118 of 540 in MI

Livability — Otsego

• Score: 73/100
• State rank: #216
• US rank: #5349

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Otsego, MI
• Population (ZIP): 10,469

Population outlook (Allegan County) Hauer SSP2

• Today (2025): 120,251 people
• By 2030: 122,204 · +1.6%
• By 2040: 123,979 · +3.1%
• By 2050: 122,340 · +1.7%
• By 2075: 116,088 · -3.5%
• By 2100: 98,461 · -18.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (86%)
• Race & ethnicity: White 86% Two or more races 6% Hispanic / Latino 4%
• Common ancestry: Iranian 9% Italian 4% Romanian 4%
• Foreign-born: 4% · Canada
• Languages at home: 92% English-only · Spanish 4% Other Indo-European 4%

Political lean MEDSL · Allegan

• 2024 margin: Strong R (+27.2) · D 35.7% · R 62.9% · Other 1.5%
• 2008→2024 swing: -16.5pp toward R · 2008: -10.7pp · 2024: -27.2pp
• All cycles: 2024: R+27.2 2020: R+25.2 2016: R+28.8 2012: R+19.2 2008: R+10.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -119.20%
• Current HPI: 245.4119
• Rent YoY: —
• Metro: —
• 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

+178.0% since first listed

24 events — show timeline

• 2026-04-17 Listed $375,000 MiRealSource-MiMLS
• 2026-04-17 Listed $375,000 REALCOMP
• 2025-09-30 Listing Removed — MiRealSource-MiMLS
• 2025-09-30 Relisted — MiRealSource-MiMLS
• 2025-09-29 Price Changed $475,000 MiRealSource-MiMLS
• 2025-08-19 Listing Removed — MiRealSource-MiMLS
• 2025-08-19 Relisted — MiRealSource-MiMLS
• 2025-06-17 Listing Removed — MiRealSource-MiMLS
• 2025-06-17 Relisted — MiRealSource-MiMLS
• 2025-06-16 Price Changed $560,000 MiRealSource-MiMLS
• 2025-06-14 Listing Removed — MiRealSource-MiMLS
• 2025-06-14 Relisted — MiRealSource-MiMLS
• 2025-06-04 Listing Removed — MiRealSource-MiMLS
• 2025-06-04 Relisted — MiRealSource-MiMLS
• 2025-06-03 Listing Removed — MiRealSource-MiMLS
• 2025-06-03 Relisted — MiRealSource-MiMLS
• 2025-05-31 Listing Removed — MiRealSource-MiMLS
• 2025-05-29 Listed $585,000 MiRealSource-MiMLS
• 2022-05-06 Listing Removed — MiRealSource-MiMLS
• 2022-02-23 Listed $345,000 MiRealSource-MiMLS
• 2020-05-31 Listing Removed — MiRealSource-MiMLS
• 2020-01-13 Listed $279,000 MiRealSource-MiMLS
• 2014-09-25 Listing Removed — SW Michigan MLS
• 2007-05-07 Listed $134,900 SW Michigan MLS