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.
Our property managers were able to raise the rents as we projected right after the closing. The property shows a 17% cash-on-cash return based on first year’s property taxes.
The home is in the highly-coveted Bagley area, 4 minutes’ drive from the other Greenlawn property from this same Pack, and our evaluations show mid-$100,000 to be a realistic comp. Zestimate suggests $132,000 in November 2025. If we take this lower number, it still means we procured $80,000 worth of equity by picking this property as part of the Pack.
The area is quite desirable to the point where property taxes are very high, and the team will watch to see if the property taxes become prohibitive for a long-term hold.
Property Overview
- Purchase Price: $54,000 (standardized from the portfolio purchase)
- Original Capital Expenditure Planned: $5,000
- Original Rent: $1,000/month
- Projected Rent: $1,200
- Final Rent: $1,200
- Square Footage: 1,395 sq ft
- Property Taxes (2024): $2,586.67
- 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 (6 mins) and supermarkets such as Meijer on 8 Mile (9 mins).
- A brick street
- Market Insights: Zillow data on 48221 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
- 19143 San Juan Drive Detroit, MI 48221-1711, sold on Jul 22, 2025, for $205,000.
- 19319 PENNINGTON Drive Detroit, MI 48221-1622, sold on Jul 23, 2025, for $263,000.
The second comp is in a better street with top-tier homeowner finish. The first comp is also homeowner finish. When our property is vacated and we ask our renovations team to do their most efficient work, high-end renter finish, we expect mid-$100,000 to be a reasonable valuation.
However for that, there should be an additional repair budget factored in, so if we take of $20,000 from this equation, we have no objection to the Zestimate of $132,000 for its as-is value.
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, and the fact that we inherited a good renter.
Out of deference to the renter, we will now show all the internal photos that were taken, but the property is in reasonable shape and we hope our renter will stay.