1504 Oak St

Norman, MI 49689

$53,000B+

3 bd · 1.0 ba · 778 sqft · Built 1940 · SingleFamily · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $960/mo
• Mortgage (P&I): −$278
• Tax + insurance: −$50
• HOA: −$0
• Vac / Maint / Mgmt: −$202
• Net cashflow: $431/mo
• Annual: $5,167/yr
• Cap rate: 16.04%
• Cash-on-cash: 34.82%
• DSCR: 2.55
• 1% rule: 1.81%
• Cash to close: $14,840

Investor read

• This is a 3-bed/1.0-bath single-family listed at $53k.
• At list price, monthly cash flow is $431 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($960 rent vs $53k).
• It's been on market 16 days — a 2% lower offer ($52k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $52k (1.5% below list) — sets the bar for market timing.
• In year one you build about $6k of equity ($366 loan paydown + $5k appreciation (10.0% local appreciation)).
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Kaleva Norman Dickson School District (rural): math 18% / reading 34% proficiency, ranked #423 of 540 in MI (top 78%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 65% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Knd Elementary (math 17% / reading 27%, grade F, #1,035 of 1,397 statewide, top 77%, 289 students, 80% FRL); Brethren Middle School (math 27% / reading 47%, grade F, #248 of 493 statewide, top 53%, 73 students, 75% FRL); Brethren High School (math 10% / reading 30%, grade F, #596 of 713 statewide, top 86%, 177 students, 64% FRL).
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 25 active listings in the ZIP; 109 units permitted in Manistee County in 2024 (0 in 5+ unit buildings).
• Manistee County population projected at -13% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 5 sale attempts since 4y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $40k; 32% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $15k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.