6603 W Cutler Rd

Wacousta, MI 48820

$315,000F

3 bd · 1.5 ba · 1,416 sqft · Built 1972 · SingleFamily · Pending · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,943/mo
• Mortgage (P&I): −$1,652
• Tax + insurance: −$404
• HOA: −$0
• Vac / Maint / Mgmt: −$408
• Net cashflow: $-520/mo
• Annual: $-6,244/yr
• Cap rate: 4.31%
• Cash-on-cash: -7.08%
• DSCR: 0.69
• 1% rule: 0.62%
• Cash to close: $88,200

Investor read

• This is a 3-bed/1.5-bath single-family listed at $315k.
• At list price, monthly cash flow is $-520 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $223k (29.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $194k (38.3% below list).
• It's been on market 28 days — a 2% lower offer ($310k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $194k (38.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#221 in MI) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, cost of living A+; Watch: amenities F, commute F, health & safety D-.
• St. Johns Public Schools (rural): math 33% / reading 50% proficiency, ranked #177 of 540 in MI (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: St Johns Middle School (math 28% / reading 54%, grade F, #195 of 493 statewide, top 41%, 569 students, 41% FRL) — zoned schools average 41% FRL vs 26% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 104 active listings in the ZIP; high-income renter base; 154 units permitted in Clinton County in 2024 (0 in 5+ unit buildings).
• 4 sale attempts since 3y 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 $258k; 22% above their basis — modest negotiation headroom, anchor on the comps not their cost.

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?
• Built in 1972 — 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.
• 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.
• 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.