6 bd · 3.0 ba ·
2,844 sqft ·
Built 1923
· Townhouse
· Pending
· 16 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$1,632/mo
Mortgage (P&I)
−$524
Tax + insurance
−$135
HOA
−$0
Vac / Maint / Mgmt
−$343
Net cashflow
$630/mo
Annual
$7,562/yr
Cap rate
13.86%
Cash-on-cash
27.01%
DSCR
2.20
1% rule
1.63%
Cash to close
$28,000
Investor read
This is a 6-bed/3.0-bath townhouse listed at $100k.
At list price, monthly cash flow is $630 ($8k/yr) — positive.
The deal already cash-flows at list — no discount required.
Meets the 1% rule at list price ($2k rent vs $100k).
It's been on market 16 days — a 2% lower offer ($98k) is reasonable based on typical stale-listing flexibility.
Recommended offer: $98k (1.5% below list) — sets the bar for market timing.
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.
Location reads 73/100 on livability (#218 in MI) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, cost of living A+; Watch: schools F, crime F, employment F.
Detroit Public Schools Community District (urban): math 10% / reading 24% proficiency, ranked #499 of 540 in MI (top 92%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 90% free/reduced lunch — lower-income household profile, screen leases tightly.
Watch-outs: built in 1923 — expect roof / HVAC / electrical / plumbing capex.
Market conditions: 137 active listings in the ZIP; 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.
2 sale attempts 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.
At projected returns (-3.0% appreciation + 3.0% rent growth), your $28k cash investment doubles in ~5 years — after that, you're playing with house money.
Cap rate 13.9% vs local median 10.2% in Detroit — 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
Built in 1923 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
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?
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.
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.
CashFlowRE · CFR-VBPHBFC6ZFH3Y8
· Data 6 days agocashflowre.app · 2026-05-29