Investment Summary
This property is part of the 29 Pack Portfolio purchased in the summer of 2025. The standard purchase price assigned is $54,000, including related costs.
This particular property started with an estimated first-year cash-on-cash return of about 4%, due to the extremely low rent inherited. After further talks with the tenant, the team terminated the lease contract and is preparing for a full rehab. The property has excellent comparable sales and, with a substantial turnaround, will likely fetch $1,200 or higher in rent alongside the value creation it will bring.
The original underwriting thesis required some modification for this property. The team has typically over-budgeted capital expenditures, so the 29 Pack Portfolio’s total underwriting budget may not need adjustment. The dust will have to settle before the team can make a full determination of whether we achieved our original goals, but in the meantime, individual properties are receiving the attention they need.
We will report back as more numbers arrive. There are times when things do not go as planned. We remain nimble and in constant communication with our property managers, fully aware that we can handle curveballs when they come—as they often do in real estate.
Property Overview
- Purchase Price: $52,000 (standardized from the portfolio purchase)
- Original Capital Expenditure Planned: $5,000
- Original Rent: $500/month
- Projected Rent: NA for now; future full potential could be $1,200 to $1,500 after updates
- Square Footage: 1,288 sq ft
- Property Taxes (2024): $1,624.90
- Zoning: R1 (Residential)
Neighborhood Analysis
- Location: Bethune neighborhood
- A good location close to the John C. Lodge Freeway by Puritan
- Close to good amenities such as the DMC Sinai Hospital (4 mins), the City’s Northwest Activities Center (5 mins) and Greenfield Market (6 mins)
- This is a brick house in a mostly brick, quiet neighborhood.
- Market Insights: Redfin data on 48238 zip code data shows median sales price to be at $85,000, with over 13% YOY sales price growth showing at the same time. Numbers often differ according to sources, but we see several trends to be generally positive for the area.
Comparable Sales
Our own realtors’ comparable sales list shows
- 15744 BIRWOOD Street, Detroit, MI 48238-1029, sold on May 15, 2025 for $167,500.
The comp shows a fully renovated property with lower-end owner-level finishes not too far from our typical top-tier rental finishes. Our subject property is not in great condition and will benefit from a makeover particularly in the basement, but was accepted as rented at a low rent of $500.
There is less visibility value-wise in a property with a lot of delayed maintenance. We would like to defer to an algorithmic Zestimate offered here; $71,600 as of November 2025.
The new modified plan to update the property will likely bring its value up to above the cost of repairs.