4048 Knightsbridge Ln

Blackman, MI 49201

$39,900B

3 bd · 2.0 ba · 1,456 sqft · Built 2007 · Other · Active · 172 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,389/mo
• Mortgage (P&I): −$209
• Tax + insurance: −$66
• HOA: −$0
• Vac / Maint / Mgmt: −$292
• Net cashflow: $821/mo
• Annual: $9,857/yr
• Cap rate: 31.00%
• Cash-on-cash: 88.23%
• DSCR: 4.93
• 1% rule: 3.48%
• Cash to close: $11,172

Investor read

• This is a 3-bed/2.0-bath other listed at $40k.
• At list price, monthly cash flow is $821 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $40k).
• It's been on market 172 days — a 12% lower offer ($35k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $35k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $276 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Northwest Community Schools (suburban): math 19% / reading 41% proficiency, ranked #360 of 540 in MI (top 67%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Northwest Early Elementary School (869 students, 61% FRL); Northwest Kidder Middle School (math 14% / reading 41%, grade F, #363 of 493 statewide, top 75%, 790 students, 50% FRL); Northwest High School (math 27% / reading 57%, grade F, #264 of 713 statewide, top 41%, 972 students, 40% FRL).
• Market conditions: Rents rising fast (+10.3%/yr); 375 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 317 units permitted in Jackson County in 2024 (103 in 5+ unit buildings).
• Jackson County population projected at -13% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts; this cycle's ask has dropped $10k (20%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 172 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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.
• 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.