42188 Todd Mark Ln

Sterling Heights, MI 48038

$148,000D

2 bd · 2.0 ba · 1,122 sqft · Built 1986 · Condo · Active · 34 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,509/mo
• Mortgage (P&I): −$776
• Tax + insurance: −$247
• HOA: −$250
• Vac / Maint / Mgmt: −$317
• Net cashflow: $-81/mo
• Annual: $-972/yr
• Cap rate: 5.64%
• Cash-on-cash: -2.35%
• DSCR: 0.90
• 1% rule: 1.02%
• Cash to close: $41,440

Investor read

• This is a 2-bed/2.0-bath condo listed at $148k. Condition is rated fair.
• At list price, monthly cash flow is $-81 ($-972/yr) — negative.
• To cash-flow at today's rent, offer at most $136k (7.9% below list).
• Meets the 1% rule at list price ($2k rent vs $148k).
• It's been on market 34 days — a 3% lower offer ($144k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $136k (7.9% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#173 in MI, #4,545 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: schools C-, health & safety D+, amenities F.
• Chippewa Valley Schools (suburban): math 39% / reading 50% proficiency, ranked #133 of 540 in MI (top 25%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents soft (-0.9%/yr); 269 active listings in the ZIP; 15 comparable units currently listed for rent nearby; rentals leasing fast (median 5d on market — plan ~1-2 weeks tenant-placement turnaround); 40% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 12 sale attempts since 32y ago; this cycle's ask has dropped $10k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $72k; list at $148k implies a 104% gain — meaningful room to come down on a strong offer.
• Cap rate 5.6% vs local median 3.8% in Sterling Heights — 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.

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 34 days. Have you received any prior offers? Is the seller open to a 8% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: Brick facade — Significant weathering and discoloration
• Major: Landscaping — Unkempt and bare patches
• Major: Windows — Signs of wear
• Major: Exterior siding — Signs of wear
• Major: Foundation — Appears uneven