Investment Summary
5916 Lakepointe is part of the 29 Pack Portfolio acquired in 2025, with a standardized purchase price of $52,000 and a total projected basis of approximately $60,000 after closing costs and planned capital expenditures.
It is noted here that the existing rent of $600/mo. is below market for this house. We expect to be able to raise the rent to $850/mo, which still does not allow us to cashflow as favorably as some of the other acquisitions. The tenant is stable, and because they are unable to stay in the property if we raise the rents too high, we will ask them to pay $850, wait and decide when and whether to take the next step on this property.
We like the location, the house, and the condition that it is in, and believe the equity capture of 25% alone is worth the acquisition.
The property is a three-bedroom, one-bath single-family home with approximately 939 square feet. It features a functional layout suitable for long-term tenants. Key systems such as the furnace and water tank are in working condition.
Attractive Location
- Location:Morningside neighborhood, near East English Village
- Close Henry Ford St. John Hospital (10 mins)
- Near established neighborhood anchors such as the Country Club of Detroit and Grosse Pointe Equestrian
- Convenient access to Mack Avenue (10 mins), a primary commercial corridor with restaurants, retail, and daily amenities
Market Insights: Surrounding home values are approaching ~$100,000, with comparable nearby sales at $87,000 and $110,000, supporting a valuation gap relative to the property’s ~$62K basis
Overall, the property is well-positioned within an established residential area supported by nearby employment centers, strong local amenities, and consistent rental demand. The combination of accessibility and surrounding market values reinforces both occupancy stability and long-term appreciation potential.
Comps
5267 N THREE MILE Drive Detroit, MI 48224-2641:Sold for $110,000
5200 WAYBURN Street Detroit, MI 48224-3037:Sold for $87,000
These comparable valuations reflect properties that are either vacant or fully renovated to market-ready condition.
Given the long-term tenant and overall condition of key systems, we plan to take a measured approach to rent increases, with additional upside available over time through light improvements and eventual turnover.