We closed on this property on 2025-03-31 with a tenant who was paying $800 a month.  This property was under property management through our trusted local partner, Own It Detroit – Mutual Property Management since 2018.  The renter agreed to a $100 rent increase after closing, and in exchange, we offered some CapEx updates in the kitchen and the bathroom.

Zillow has the property valued at $80,700 in September 2025; however, based on the property’s internal condition, we have given it a more conservative internal valuation of $70,000.  For reference, this area’s average property values are above $83,000 today.

The equity we gained is about 23%, which is an extraordinary outcome, based on the fact that we started cash flowing from day one, with no downtime.

The simple return on capital on this property (pending property tax revisions) will start at an annualized 12.7%.

Sometimes deals are too good to be true, and sometimes they are real.

This property was purchased for $20,000 on 2025-03-28 with a good renter who agreed to increase their rent from the $800 they were paying before closing. We factored in $20,000 as CapEx because there are some exterior repairs such as the roof that the house could benefit from. However, after half a year, we have not needed those repairs yet.

After closing, the rents were raised to $900. Pending property tax hikes following ownership change, the initial cash-on-cash returns have started at an astounding 33% based on the original purchase price alone. A purchase price of $20,000 to a valuation of $60,000 is 200% equity growth.

Zestimate is at $110,500 in September 2025; however, we did not do any work on the property after acquisition, so to compare it to nearby fully fixed-up homes would not be realistic.

It is also worth mentioning that this is our second acquisition on Prest Street.  See details on 16234 Prest Street.  16234 Prest is 10 minutes to the north from this property.