Investment Highlights
- Stabilized Rent Potential: Rental increase to $1,200/month is expected after Section 8 adjustment.
- Value Growth: Area appreciation and low purchase price support ARV estimate of $110,000.
- Strategic Location: Proximity to key amenities and major employment hubs.
Market Comparables
- Comparable homes in the area range from $105,000 to $160,000, depending on size, condition, and updates.
- Recent sales indicate strong demand, with a median value in the neighborhood of $94,000 (48235 zip code appreciated 10% last year).
Area Insights
- Location Benefits:4 minutes to DMC Sinai Grace Hospital.
- 5 minutes to major retail: Home Depot and Glory Super Market.
- Nearby Greenfield Market offers larger fresh food options.
- Management Familiarity: The property manager has extensive experience in College Park, managing multiple properties in the area.
- Strong Appreciation: The zip code 48235 appreciated 10% last year, outperforming Detroit’s overall property appreciation rate.
This property has outsized equity growth potential. Once the Section 8 Rent is raised to where the Team believes it should be, the cash-on-cash return on capital will also match its equity potential.