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.
The property manager was able to raise the rents to where we expected before closing. The property has high taxes bringing the cash-on-cash is 8.5% in our starting year. This likely does not represent the full rent potential of this property. For now, our CapEx planned for this property has mostly not been used, so we will leave it to the property managers to see if we can raise the rents incrementally as is often the case.
The tenant has refused to allow the inspectors to take internal photos, but the acquisition team’s reports are that the $5,000 capital expenditure is mostly earmarked for external issues such as a crack in the concrete on the front porch, and an exchange of the glass block window for the basement. The team has factored in the fact that the tenant has lived here since 2020. The internals may not need immediate attention but are generally not updated to compare with top comparable sales. Internal photos from that time may be available on the property page on Zillow.
Property Overview
- Purchase Price: $54,000 (standardized from the portfolio purchase)
- Original Capital Expenditure Planned: $5,000
- Original Rent: $775/month
- Projected Rent: $905
- Final Rent: $905
- Square Footage: 1,069 sq ft
- Property Taxes (2024): $3,728.56
- 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 (2 mins), the City’s Northwest Activities Center (5 mins) and Greenfield Market (4 mins)
- This is a brick house in a mostly brick, quiet neighborhood.
- Market Insights: Zillow data on 48227 zip code shows median sales price to be at $71,000, with over 5% sales price growth. Numbers often differ according to sources, but we see several trends to be generally positive for the area.
Comparable Sales
- 15775 Hartwell Street Detroit, MI 48227-3330 has been under contract for $89,900 since August 18, 2025
- 15891 APPOLINE Street Detroit, MI 48227-4011 is for sale for $109,000 since May 2025
Factoring in for the difference in the internals, the team is defer to an algorithmic Zestimate of around $72,000. This measures well with the current market scene for investment properties within Detroit. There is likely 30% equity here as-is.