2216 Douglas Dr

Tawas City, MI 48763-9445

$210,111D

3 bd · 2.0 ba · 1,900 sqft · Built 1950 · SingleFamily · Active · 76 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,281/mo
• Mortgage (P&I): −$1,102
• Tax + insurance: −$163
• HOA: −$0
• Vac / Maint / Mgmt: −$269
• Net cashflow: $-253/mo
• Annual: $-3,034/yr
• Cap rate: 4.85%
• Cash-on-cash: -5.16%
• DSCR: 0.77
• 1% rule: 0.61%
• Cash to close: $58,831

Investor read

• This is a 3-bed/2.0-bath single-family listed at $210k.
• At list price, monthly cash flow is $-253 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $165k (21.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $128k (39.0% below list).
• It's been on market 76 days — a 6% lower offer ($198k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $128k (39.0% below list) — sets the bar for 1% rule.
• In year one you build about $8k of equity ($1k loan paydown + $6k appreciation (3.0% local appreciation)).
• Location reads 70/100 on livability (#305 in MI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime D+, amenities F, commute F.
• Tawas Area Schools (rural): math 34% / reading 51% proficiency, ranked #190 of 540 in MI (top 35%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Clara B Bolen Elementary School (math 42% / reading 57%, grade D, #382 of 1,397 statewide, top 30%, 434 students, 64% FRL); Tawas Area Middle School (math 28% / reading 48%, grade F, #235 of 493 statewide, top 49%, 356 students, 53% FRL); Tawas Area High School (math 37% / reading 52%, grade F, #214 of 713 statewide, top 36%, 346 students, 42% FRL) — zoned schools at 53% FRL track the district average.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 1 active listings in the ZIP; 58 units permitted in Iosco County in 2024 (0 in 5+ unit buildings).
• Iosco County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 5, paydown + projected appreciation supports a ~$34k 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?
• It's been on market 76 days. Have you received any prior offers? Is the seller open to a 39% concession, seller financing, or rate buy-down credit?
• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?
• Crime grade is D 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?
• 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?