4450 22 Mile Rd

Homer, MI 49245

$45,500B

2 bd · 1.5 ba · 1,152 sqft · Built 1998 · SingleFamily · Pending · 33 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $925/mo
• Mortgage (P&I): −$239
• Tax + insurance: −$76
• HOA: −$0
• Vac / Maint / Mgmt: −$194
• Net cashflow: $416/mo
• Annual: $4,993/yr
• Cap rate: 17.27%
• Cash-on-cash: 39.19%
• DSCR: 2.74
• 1% rule: 2.03%
• Cash to close: $12,740

Investor read

• This is a 2-bed/1.5-bath single-family listed at $46k.
• At list price, monthly cash flow is $416 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($925 rent vs $46k).
• It's been on market 33 days — a 3% lower offer ($44k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $44k (3.0% below list) — sets the bar for market timing.
• In year one you build about $89 of equity ($315 loan paydown + $-226 appreciation (-0.5% local appreciation)).
• Location reads 69/100 on livability (#343 in MI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities F, commute F, employment F.
• Homer Community School District (rural): math 18% / reading 29% proficiency, ranked #437 of 540 in MI (top 81%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Lillian Fletcher Elem School (math 22% / reading 37%, grade F, #866 of 1,397 statewide, top 65%, 356 students, 65% FRL); Homer Middle School (math 16% / reading 25%, grade F, #418 of 493 statewide, top 85%, 264 students, 57% FRL); Homer Community High School (math 22% / reading 32%, grade F, #462 of 713 statewide, top 66%, 290 students, 54% FRL).
• Market conditions: 24 active listings in the ZIP; 132 units permitted in Calhoun County in 2024 (0 in 5+ unit buildings).
• Calhoun County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 8 sale attempts since 6y ago; this cycle's ask has dropped $18k (28%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-0.5% appreciation + 3.0% rent growth), your $13k cash investment doubles in ~3 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 33 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• 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?
• 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.