5042 Dailey St · Detroit, MI 48204

$40,000

4 bd · 2.0 ba · 2,316 sqft · Townhouse public records · 131 Days on market

Built 1918 4,356 sqft lot $17/sqft · 50% below area ↓ 39% since listing

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Why this score? — see what drove the C- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +15.0/30.0
• Appreciation +10.0/10.0
• ARV discount +7.5/15.0
• 1% rule +5.0/10.0
• DSCR +5.0/10.0
• Livability +3.7/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +1.3/10.0

Listing remarks MLS

Value-add duplex minutes from downtown and Mexican town with direct access to I-96 freeway. Full renovation required making it ideal for rehab, BRRRR, or a long-term hold. ARVs in the area are $150k with rental comps of $1200 (per unit) conservatively. This property offers strong rental upside in a high demand area with easy freeway access. Located in the heart of the city, this property is in close proximity to dining, entertainment, jobs, and transit. Sold as-is. Cash or renovation financing accepted.

Key facts

• High demand area
• Strong rental upside
• 4,356 sq ft lot

Tags

• DIRECT ACCESS TO I-96 FREEWAY
• STRONG RENTAL UPSIDE
• HIGH DEMAND AREA
• CLOSE PROXIMITY TO DINING
• CLOSE PROXIMITY TO JOBS
• CLOSE PROXIMITY TO TRANSIT

What this means for you Summary

Snapshot

• This is a 4-bed/2.0-bath townhouse listed at $40k.

Deal economics

• At list price, monthly cash flow is $1k ($13k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $40k).
• Recommended offer: $35k (12.0% below list) — sets the bar for market timing.
• Cap rate 38.3% vs local median 10.2% in Detroit — 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.

Location & tenants

• Location reads 73/100 on livability (#218 in MI) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, cost of living A+; Watch: schools F, crime F, employment F.
• Detroit Public Schools Community District (urban): math 10% / reading 24% proficiency, ranked #499 of 540 in MI (top 92%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 90% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 244 active listings in the ZIP; 15 comparable units currently listed for rent nearby; rentals at typical pace (median 17d on market — plan ~3-4 weeks tenant-placement turnaround); lower-income renter base — watch delinquency; 2,639 units permitted in Wayne County in 2024 (1,216 in 5+ unit buildings).
• At $1,701/mo this rent would consume 59% of the median local household income ($34k/yr) (locally 1418% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• In year one you build about $4k of equity ($277 loan paydown + $4k appreciation (10.0% local appreciation)).
• Wayne County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~1 year — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 131 days — a 12% lower offer ($35k) is reasonable based on typical stale-listing flexibility.
• 4 sale attempts; this cycle's ask has dropped $20k (33%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Watch-outs: built in 1918 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $35,200 (12.0% below list)

Questions for the listing agent

1. It's been on market 131 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Built in 1918 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. Crime grade is F 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?
7. 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.
8. 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.
9. 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.

Investment metrics

• 1% rule: 4.25% ✓
• Cap rate: 38.32%
• Cash-on-cash: 114.40%
• DSCR: 6.09
• GRM: 2.0

CMA / ARV

• ARV (median comp): $80,437
• List price: $40,000
• Delta: -50.27%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: —
• Equity multiple: 9.02×
• Total profit: $89,814
• Equity at exit: $36,035

10-year hold

• IRR: —
• Equity multiple: 19.84×
• Total profit: $211,060
• Equity at exit: $77,711

Cash invested: $11,200 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 62 Landlord-Friendly
• State Michigan: 62 Landlord-Friendly · EVEN
• County: — inherits STATE
• City: — inherits STATE

7-day pay-or-quit; mixed climate; Detroit/AA have some protections.

Methodology + full state rankings →

ZIP-level market 48204

• Home prices YoY: 18.5%
• Active inventory: 244
• Price-to-rent: 2.0×

Monthly cashflow live

• Estimated rent: $1,701 high
• Mortgage (P&I): −$210
• Tax est. 1.5%: −$50 /mo · $600/yr
• Insurance: −$17
• HOA: −$0
• Vacancy / Maint / Mgmt: −$357
• Net cashflow: $1,068

Break-even live

Break-even rent $350

Max offer price $40,000

Occupancy floor 32%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $10,000
• Closing costs: $1,200
• Reserves months: —
• Total cash needed: —

Rent comps 15 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
5315 Spokane St Detroit, MI	3.0	1.0	2110	$1,200	$0.57	17d	1	0.39mi
3799 W Philadelphia St Detroit, MI	5.0	2.0	2200	$1,650	$0.75	17d	1	0.79mi
8320 Northlawn St Detroit, MI	3.0	1.0	1737	$1,550	$0.89	20d	1	1.16mi
3241 Lawrence St Detroit, MI	4.0	2.0	2636	$1,800	$0.68	17d	1	1.22mi
3322 Webb St Unit 1 Detroit, MI	3.0	1.0	1656	$1,350	$0.82	44d	1	1.26mi
3322 Webb St Unit 2 Detroit, MI	3.0	1.0	1656	$1,350	$0.82	44d	1	1.26mi
3322 Webb St Detroit, MI	3.0	1.0	1600	$1,250	$0.78	17d	1	1.26mi
3031 Lawrence St Detroit, MI	4.0	1.0	1700	$1,600	$0.94	17d	1	1.28mi
12546 Broadstreet Ave Detroit, MI	3.0	1.5	1899	$1,250	$0.66	44d	1	1.33mi
2509 Gladstone St Unit 1 Detroit, MI	3.0	2.0	3000	$2,650	$0.88	2d	1	1.40mi
2655 Collingwood St Detroit, MI	4.0	1.5	1881	$2,700	$1.44	2d	1	1.45mi
4341 Glendale St Detroit, MI	4.0	2.5	1832	$1,680	$0.92	5d	1	1.48mi
8951 La Salle Blvd Unit NA Detroit, MI	4.0	2.5	2440	$2,500	$1.02	10d	1	1.49mi
8951 La Salle Blvd Detroit, MI	4.0	2.5	2440	$2,500	$1.02	2d	1	1.49mi
8951 La Salle Blvd Detroit, MI	5.0	2.5	2440	$2,500	$1.02	15d	1	1.49mi

Listing history 27 events

1. 2026-06-18
   days on market $40,000 Active 131 DOM
2. 2026-06-17
   days on market $40,000 Active 130 DOM
3. 2026-06-15
   days on market $40,000 Active 128 DOM
4. 2026-06-13
   days on market $40,000 Active 126 DOM
5. 2026-06-13
   days on market $40,000 Active 125 DOM
6. 2026-06-09
   days on market $40,000 Active 122 DOM
7. 2026-06-08
   days on market $40,000 Active 121 DOM
8. 2026-06-07
   days on market $40,000 Active 120 DOM
9. 2026-06-04
   days on market $40,000 Active 117 DOM
10. 2026-06-03
    days on market $40,000 Active 116 DOM
11. 2026-06-01
    days on market $40,000 Active 114 DOM
12. 2026-05-31
    days on market $40,000 Active 113 DOM
13. 2026-03-24
    price $40,000 508-char remark

    Show marketing remark (508 chars)

    Value-add duplex minutes from downtown and Mexican town with direct access to I-96 freeway. Full renovation required making it ideal for rehab, BRRRR, or a long-term hold. ARVs in the area are $150k with rental comps of $1200 (per unit) conservatively. This property offers strong rental upside in a high demand area with easy freeway access. Located in the heart of the city, this property is in close proximity to dining, entertainment, jobs, and transit. Sold as-is. Cash or renovation financing accepted.

14. 2026-03-24
    price $40,000 508-char remark

    Show marketing remark (508 chars)

    Value-add duplex minutes from downtown and Mexican town with direct access to I-96 freeway. Full renovation required making it ideal for rehab, BRRRR, or a long-term hold. ARVs in the area are $150k with rental comps of $1200 (per unit) conservatively. This property offers strong rental upside in a high demand area with easy freeway access. Located in the heart of the city, this property is in close proximity to dining, entertainment, jobs, and transit. Sold as-is. Cash or renovation financing accepted.

15. 2026-03-06
    price $45,000 508-char remark

    Show marketing remark (508 chars)

    Value-add duplex minutes from downtown and Mexican town with direct access to I-96 freeway. Full renovation required making it ideal for rehab, BRRRR, or a long-term hold. ARVs in the area are $150k with rental comps of $1200 (per unit) conservatively. This property offers strong rental upside in a high demand area with easy freeway access. Located in the heart of the city, this property is in close proximity to dining, entertainment, jobs, and transit. Sold as-is. Cash or renovation financing accepted.

16. 2026-03-05
    price $45,000 508-char remark

    Show marketing remark (508 chars)

    Value-add duplex minutes from downtown and Mexican town with direct access to I-96 freeway. Full renovation required making it ideal for rehab, BRRRR, or a long-term hold. ARVs in the area are $150k with rental comps of $1200 (per unit) conservatively. This property offers strong rental upside in a high demand area with easy freeway access. Located in the heart of the city, this property is in close proximity to dining, entertainment, jobs, and transit. Sold as-is. Cash or renovation financing accepted.

17. 2026-02-20
    price $55,000 508-char remark

    Show marketing remark (508 chars)

    Value-add duplex minutes from downtown and Mexican town with direct access to I-96 freeway. Full renovation required making it ideal for rehab, BRRRR, or a long-term hold. ARVs in the area are $150k with rental comps of $1200 (per unit) conservatively. This property offers strong rental upside in a high demand area with easy freeway access. Located in the heart of the city, this property is in close proximity to dining, entertainment, jobs, and transit. Sold as-is. Cash or renovation financing accepted.

18. 2026-02-20
    price $55,000 508-char remark

    Show marketing remark (508 chars)

    Value-add duplex minutes from downtown and Mexican town with direct access to I-96 freeway. Full renovation required making it ideal for rehab, BRRRR, or a long-term hold. ARVs in the area are $150k with rental comps of $1200 (per unit) conservatively. This property offers strong rental upside in a high demand area with easy freeway access. Located in the heart of the city, this property is in close proximity to dining, entertainment, jobs, and transit. Sold as-is. Cash or renovation financing accepted.

19. 2026-02-07
    listed $60,000 Active 508-char remark

    Show marketing remark (508 chars)

    Value-add duplex minutes from downtown and Mexican town with direct access to I-96 freeway. Full renovation required making it ideal for rehab, BRRRR, or a long-term hold. ARVs in the area are $150k with rental comps of $1200 (per unit) conservatively. This property offers strong rental upside in a high demand area with easy freeway access. Located in the heart of the city, this property is in close proximity to dining, entertainment, jobs, and transit. Sold as-is. Cash or renovation financing accepted.

20. 2026-02-07
    listed $60,000 Active 508-char remark

    Show marketing remark (508 chars)

    Value-add duplex minutes from downtown and Mexican town with direct access to I-96 freeway. Full renovation required making it ideal for rehab, BRRRR, or a long-term hold. ARVs in the area are $150k with rental comps of $1200 (per unit) conservatively. This property offers strong rental upside in a high demand area with easy freeway access. Located in the heart of the city, this property is in close proximity to dining, entertainment, jobs, and transit. Sold as-is. Cash or renovation financing accepted.

21. 2025-12-04
    historical
22. 2025-12-03
    historical
23. 2025-09-30
    price $55,500
24. 2025-09-29
    price $55,500
25. 2025-09-29
    price $55,500
26. 2025-09-13
    listed $65,500 Active
27. 2025-09-13
    listed $65,500 Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 3/10 Moderate 7 d/yr ≥97°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 4/10 Moderate 4 unhealthy d/yr today · 6 by 30 yrs out

Taxation est. · year 1

• Rental income: $20,417
• − Mortgage interest: −$2,241
• − Property taxes: −$600
• − Insurance: −$200
• − Repairs & maintenance: −$1,633
• − Management: −$1,633
• − Depreciation: −$1,164
• Taxable income: $12,946
• Est. tax owed @ 24.0%: −$3,107
• After-tax cash flow: $9,705/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Detroit Public Schools Community District
• NCES district ID: 2601103
• Math proficiency: 10% ▼ -2.00%
• Reading proficiency: 24% ▲ 6.00%
• Median HH income: $25,815
• Composite: 13.06/100
• National rank: #9564
• State rank: #499 of 540 in MI

Livability — Detroit

• Score: 73/100
• State rank: #218
• US rank: #5427

Category grades

Amenities A+ Commute A+ Cost of living A+ Crime F Employment F Housing A+ Health & safety B- User ratings F

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Detroit, MI
• County: Wayne County · 1,562,939 people
• City population: 572,865
• Metro: Detroit-Warren-Dearborn, MI
• Population (ZIP): 20,696
• Household income: $34,468
• Rent vs Own: 45.0% rent · 55.0% own
• Severe rent burden: 1418.0

Population outlook (Wayne County) Hauer SSP2

• Today (2025): 1,675,273 people
• By 2030: 1,620,300 · -3.3%
• By 2040: 1,502,341 · -10.3%
• By 2050: 1,384,039 · -17.4%
• By 2075: 1,124,592 · -32.9%
• By 2100: 881,193 · -47.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Black (86%)
• Race & ethnicity: Black 86% Two or more races 7% Hispanic / Latino 5% White 4% Native American 2%
• Hispanic origin (detail): Mexican 4%
• Common ancestry: Hispanic 1% Romanian 1%
• Foreign-born: 2% · Canada
• Languages at home: 95% English-only · Spanish 4%

Political lean MEDSL · Wayne

• 2024 margin: Strong D (+29.0) · D 62.7% · R 33.7% · Other 3.6%
• 2008→2024 swing: -20.5pp toward R · 2008: 49.5pp · 2024: 29.0pp
• All cycles: 2024: D+29.0 2020: D+38.1 2016: D+37.3 2012: D+46.9 2008: D+49.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 36.51%
• Current HPI: 234.0465
• Rent YoY: —
• Metro: Detroit-Warren-Dearborn, MI
• State GDP YoY: ▲ 1.37%
• F500 in state: 28

Industry mix (Fortune 500 HQ in MI)

Industry	F500 HQs	Revenue
▸Automotive Parts	3	$48B
▸Automotive	2	$372B
▸Chemicals	1	$45B
▸Automotive Retail	1	$29B
▸Healthcare / Medical Devices	1	$23B
▸Automotive Technology	1	$20B

Price history

-38.9% since first listed

15 events — show timeline

• 2026-03-24 Price Changed $40,000 MiRealSource-MiMLS
• 2026-03-24 Price Changed $40,000 REALCOMP
• 2026-03-06 Price Changed $45,000 MiRealSource-MiMLS
• 2026-03-05 Price Changed $45,000 REALCOMP
• 2026-02-20 Price Changed $55,000 MiRealSource-MiMLS
• 2026-02-20 Price Changed $55,000 REALCOMP
• 2026-02-07 Listed $60,000 REALCOMP
• 2026-02-07 Listed $60,000 MiRealSource-MiMLS
• 2025-12-04 Listing Removed — MiRealSource-MiMLS
• 2025-12-03 Listing Removed — REALCOMP
• 2025-09-30 Price Changed $55,500 MiRealSource-MiMLS
• 2025-09-29 Price Changed $55,500 REALCOMP
• 2025-09-29 Price Changed $55,500 SW Michigan MLS
• 2025-09-13 Listed $65,500 REALCOMP
• 2025-09-13 Listed $65,500 MiRealSource-MiMLS

Property tax history

+1.6%/yr

Latest (2025): $2,084 · +6.3% YoY. Source: county tax records.