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 property’s cash-on-cash return against the original underwritten capital deployment is a whopping 17.74% the first year. The property is in reasonable shape, and the property management team was able to secure near-top market rent for this large property without much repairs.
The property is in the highly-coveted Bagley area, and the our evaluation of the property to be around $190,000, because it will likely need some repairs to match some of the better comps. Zillow’s algorithm is suggesting about $155,000 in November 2025, which still means our locked value is likely close to $100,000 with this property.
The area is quite desirable to the point where property taxes are very high, and the team has the option to hold to this property while it cash flows, or to sell it for interim capital gain.
Property Overview
- Purchase Price: $54,000 (standardized from the portfolio purchase)
- Original Capital Expenditure Planned: $5,000
- Original Rent: $1,070/month
- Projected Rent: $1,300
- Final Rent: $1,300
- Square Footage: 1,558 sq ft
- Property Taxes (2024): $3,030.07
- Zoning: R1 (Residential)
Neighborhood Analysis
- Location: Bagley neighborhood
- A highly-coveted location
- Close to good amenities such as the City’s Northwest Activities Center (5 mins), the Detroit Golf Club (8 mins), the DMC Sinai Grace Hospital (5 mins) and supermarkets such as Meijer on 8 Mile (11 mins).
- A brick street
- Market Insights: Zillow data on 48228 zip code shows median sales price to be at around $140,000. The area saw much appreciation but tapered recently likely due to having reached a ceiling for now. The area remains desirable, and the team has the option to hold to this property or to sell it for interim capital gain.
Comparable Sales
- 18030 PENNINGTON Drive Detroit, MI 48221-2637, sold on Aug 1, 2025 at $182,500. This property’s finishes look comparable to the level of repairs we would typically.
- 17600 PENNINGTON Drive Detroit, MI 48221-2684, sold on Jun 6, 2025, at $221,900. This property also has not gone through top renovations.
The homes in this area sell well with minimal finishes on the original hardwood work. As we said in the Investment Summary, we are sitting on good equity to be collected on this property. The property taxes are a typical concern in this well-regarded area, and if they rise faster than our rents can, we will have an option to exercise. In our minds, this is not a bad place to be, considering that our acquisition costs on this property is less than half of its likely value.