3339 Elsinore Ct

Ann Arbor, MI 48105

$525,000D

4 bd · 2.5 ba · 2,066 sqft · Built 2000 · Condo · Active · 58 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,816/mo
• Mortgage (P&I): −$2,753
• Tax + insurance: −$1,002
• HOA: −$75
• Vac / Maint / Mgmt: −$801
• Net cashflow: $-815/mo
• Annual: $-9,779/yr
• Cap rate: 4.43%
• Cash-on-cash: -6.65%
• DSCR: 0.70
• 1% rule: 0.73%
• Cash to close: $147,000

Investor read

• This is a 4-bed/2.5-bath condo listed at $525k.
• At list price, monthly cash flow is $-815 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $381k (27.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $382k (27.3% below list).
• It's been on market 58 days — a 3% lower offer ($509k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $381k (27.4% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• Location reads 88/100 on livability (#10 in MI, #155 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: cost of living D.
• Ann Arbor Public Schools (urban): math 71% / reading 81% proficiency, ranked #6 of 540 in MI (top 1%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Ann Arbor Open At Mack School (math 74% / reading 84%, grade A, #21 of 1,397 statewide, top 2%, 517 students, 11% FRL); Clague Middle School (math 77% / reading 81%, grade A+, #6 of 493 statewide, top 1%, 718 students, 16% FRL); Huron High School (math 66% / reading 79%, grade B+, #25 of 713 statewide, top 4%, 1,635 students, 31% FRL) — zoned schools at 19% FRL track the district average.
• Market conditions: Rents flat; 197 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 996 units permitted in Washtenaw County in 2024 (492 in 5+ unit buildings).
• Washtenaw County population projected at +25% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 8 sale attempts since 26y ago; this cycle's ask is 16306% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $210k; list at $525k implies a 150% gain — meaningful room to come down on a strong offer.
• Cap rate 4.4% vs local median 2.4% in Ann Arbor — 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.
• At $3,816/mo this rent would consume 48% of the median local household income ($95k/yr) (locally 2316% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 58 days. Have you received any prior offers? Is the seller open to a 27% 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 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.