22241 Atlantic

Farmington Hills, MI 48336

$155,000D-

2 bd · 2.5 ba · 1,015 sqft · Built 1995 · Condo · Pending · 43 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,443/mo
• Mortgage (P&I): −$813
• Tax + insurance: −$258
• HOA: −$305
• Vac / Maint / Mgmt: −$303
• Net cashflow: $-236/mo
• Annual: $-2,833/yr
• Cap rate: 4.47%
• Cash-on-cash: -6.53%
• DSCR: 0.71
• 1% rule: 0.93%
• Cash to close: $43,400

Investor read

• This is a 2-bed/2.5-bath condo listed at $155k. Condition is rated good.
• At list price, monthly cash flow is $-236 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $121k (22.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $144k (6.9% below list).
• It's been on market 43 days — a 3% lower offer ($150k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $121k (22.0% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#64 in MI, #1,364 nationally) — a professional / high-income tenant draw. Strengths: employment A+, housing A+, crime A; Watch: amenities D, health & safety F.
• Farmington Public School District (urban): math 45% / reading 58% proficiency, ranked #78 of 540 in MI (top 14%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 19% free/reduced lunch — higher-income household profile.
• Zoned schools: Gill Elementary School (math 42% / reading 42%, grade F, #547 of 1,397 statewide, top 41%, 485 students, 31% FRL); Power Middle School (math 42% / reading 60%, grade C, #106 of 493 statewide, top 22%, 605 students, 29% FRL); Farmington High School (math 49% / reading 75%, grade B-, #58 of 713 statewide, top 9%, 1,400 students, 30% FRL).
• Watch-outs: HOA is 21% of rent.
• Market conditions: Rents rising fast (+10.8%/yr); 157 active listings in the ZIP; 12 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 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 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.
• Cap rate 4.5% vs local median 3.4% in Farmington 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 43 days. Have you received any prior offers? Is the seller open to a 22% concession, seller financing, or rate buy-down credit?
• 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 B-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?
• 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.