1630 Mills Ave

North Muskegon, MI 49445

$314,900D-

3 bd · 1.5 ba · 1,443 sqft · Built 1924 · SingleFamily · Pending · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,855/mo
• Mortgage (P&I): −$1,651
• Tax + insurance: −$400
• HOA: −$0
• Vac / Maint / Mgmt: −$390
• Net cashflow: $-586/mo
• Annual: $-7,036/yr
• Cap rate: 4.06%
• Cash-on-cash: -7.98%
• DSCR: 0.64
• 1% rule: 0.59%
• Cash to close: $88,172

Investor read

• This is a 3-bed/1.5-bath single-family listed at $315k.
• At list price, monthly cash flow is $-586 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $211k (32.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $186k (41.1% below list).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $186k (41.1% below list) — sets the bar for 1% rule.
• In year one you build about $34k of equity ($2k loan paydown + $31k appreciation (10.0% local appreciation)).
• Location reads 77/100 on livability (#129 in MI, #3,195 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, cost of living A+; Watch: amenities F, commute F, health & safety F.
• North Muskegon Public Schools (suburban): math 52% / reading 65% proficiency, ranked #84 of 760 in MI (top 11%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: North Muskegon Elementary School (math 50% / reading 50%, grade D, #382 of 1,397 statewide, top 30%, 376 students, 37% FRL); North Muskegon Middle School (math 52% / reading 77%, grade A-, #38 of 493 statewide, top 8%, 223 students, 37% FRL); North Muskegon High School (math 47% / reading 72%, grade C+, #80 of 713 statewide, top 12%, 335 students, 30% FRL).
• Watch-outs: built in 1924 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 144 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 438 units permitted in Muskegon County in 2024 (115 in 5+ unit buildings).
• Muskegon County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 14 sale attempts since 25y 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.
• By year 2, paydown + projected appreciation supports a ~$54k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• Built in 1924 — 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 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?
• 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.