8120 24 Mile Rd

Shelby, MI 48316

$139,900D-

2 bd · 1.0 ba · 938 sqft · Built 1970 · Townhouse · Active · 52 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,155/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$233
• HOA: −$320
• Vac / Maint / Mgmt: −$243
• Net cashflow: $-374/mo
• Annual: $-4,491/yr
• Cap rate: 3.08%
• Cash-on-cash: -11.47%
• DSCR: 0.49
• 1% rule: 0.83%
• Cash to close: $39,172

Investor read

• This is a 2-bed/1.0-bath townhouse listed at $140k. Condition is rated good.
• At list price, monthly cash flow is $-374 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $86k (38.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $116k (17.4% below list).
• It's been on market 52 days — a 3% lower offer ($136k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $86k (38.7% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $967 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#324 in MI) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• Utica Community Schools (suburban): math 38% / reading 53% proficiency, ranked #126 of 540 in MI (top 23%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Issac Monfort Elementary School (math 43% / reading 57%, grade D+, #371 of 1,397 statewide, top 27%, 533 students, 38% FRL); Utica High School (math 33% / reading 62%, grade D, #185 of 713 statewide, top 26%, 1,368 students, 36% FRL).
• Watch-outs: HOA is 28% of rent.
• Market conditions: 187 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 1,321 units permitted in Macomb County in 2024 (86 in 5+ unit buildings).
• Macomb County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 2y ago; this cycle's ask has dropped $10k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• This rent is only 14% of the median local income ($101k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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 52 days. Have you received any prior offers? Is the seller open to a 39% concession, seller financing, or rate buy-down credit?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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.