11258 Greenfield Dr

Galesburg, MI 49053

$87,000B-

3 bd · 2.0 ba · 1,216 sqft · Built 2020 · Other · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,253/mo
• Mortgage (P&I): −$456
• Tax + insurance: −$145
• HOA: −$0
• Vac / Maint / Mgmt: −$263
• Net cashflow: $388/mo
• Annual: $4,660/yr
• Cap rate: 11.65%
• Cash-on-cash: 19.13%
• DSCR: 1.85
• 1% rule: 1.44%
• Cash to close: $24,360

Investor read

• This is a 3-bed/2.0-bath other listed at $87k. Condition is rated good.
• At list price, monthly cash flow is $388 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $87k).
• It's been on market 20 days — a 2% lower offer ($86k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $86k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $601 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#442 in MI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A, crime B+; Watch: amenities F, commute F, employment F.
• Galesburg-Augusta Community Schools (rural): math 24% / reading 41% proficiency, ranked #321 of 540 in MI (top 59%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Galesburgaugusta Primary School (math 37% / reading 37%, grade F, #685 of 1,397 statewide, top 51%, 327 students, 61% FRL); Galesburgaugusta Middle School (math 23% / reading 38%, grade F, #333 of 493 statewide, top 68%, 284 students, 54% FRL); Galesburgaugusta High School (math 22% / reading 47%, grade F, #372 of 713 statewide, top 56%, 348 students, 49% FRL).
• Market conditions: 61 active listings in the ZIP; 339 units permitted in Kalamazoo County in 2024 (22 in 5+ unit buildings).
• Kalamazoo County population projected at +18% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~7 years — after that, you're playing with house money.
• Cap rate 11.6% vs local median 2.5% in Galesburg — 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

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.