20471 Nicke St

Clinton, MI 48035

$154,900B+

4 bd · 2.0 ba · 1,640 sqft · Built 1942 · MultiFamily · Active · 281 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,763/mo
• Mortgage (P&I): −$812
• Tax + insurance: −$399
• HOA: −$0
• Vac / Maint / Mgmt: −$580
• Net cashflow: $971/mo
• Annual: $11,653/yr
• Cap rate: 13.82%
• Cash-on-cash: 26.87%
• DSCR: 2.20
• 1% rule: 1.78%
• Cash to close: $43,372

Investor read

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $155k. Condition is rated fair.
• At list price, monthly cash flow is $971 ($12k/yr) — positive. Per door: $486/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $155k).
• It's been on market 281 days — a 12% lower offer ($136k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $136k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#315 in MI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Clintondale Community Schools (suburban): math 7% / reading 20% proficiency, ranked #506 of 540 in MI (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 74% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Rainbow Elementary School (math 12% / reading 22%, grade F, #1,149 of 1,397 statewide, top 84%, 249 students, 82% FRL); Clintondale Middle School (math 7% / reading 20%, grade F, #462 of 493 statewide, top 94%, 349 students, 87% FRL); Clintondale High School (math 2% / reading 27%, grade F, #640 of 713 statewide, top 91%, 383 students, 81% FRL).
• Watch-outs: property tax is 2.6% of price; built in 1942 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.2%/yr); 294 active listings in the ZIP; 16 comparable units currently listed for rent nearby; rentals lingering (median 39d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 69% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 7 sale attempts since 23y ago; this cycle's ask has dropped $30k (16%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $130k; 19% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-3.0% appreciation + 4.2% rent growth), your $43k cash investment doubles in ~5 years — after that, you're playing with house money.
• Cap rate 13.8% vs local median 3.6% in Clinton — 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

• It's been on market 281 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1942 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.

Repairs flagged (vision-AI assessment)

• Major: Kitchen cabinets — Photos show older cabinets with no visible updates.
• Major: Bathrooms — No photos of bathrooms.
• Moderate: Exterior siding — Siding appears weathered and in need of repainting.
• Major: Flooring — Carpeted floors appear worn and in need of replacement.
• Major: Paint — Paint appears chipped and worn, requiring repainting.
• Major: Landscaping — Landscaping appears unkempt and overgrown, requiring trimming and planting.