Investment Summary:
This was a value-add property in deteriorated condition — the proverbial “ugliest house on the street.” Our rehab team turned it into a cash-flowing rental exceeding underwriting expectations in under three months, even in the middle of a Michigan winter. The home leased within two weeks of repair completion, validating both our underwriting assumptions and confidence in the neighborhood.
Initial ROI expectations are approximately 9.9%, pending property tax adjustments under new ownership. Full rehab projects have become, and remain, extremely costly in the post-pandemic era. In this particular project, this has lead to a lower equity capture than we typically target.
The strength of this acquisition lies in the area’s strong desirability, consistent rental demand, and the advantage of our on-the-ground presence. As a fund with long-term focus, we remain optimistic that this property will deliver value as the area’s home prices and rents appreciate into the next few years.
Property Overview
Address: 16725 Murray Hill St, Detroit, MI 48235
- Purchase Price: $46,000
- Estimated After Repair Value (ARV): $110,000
- CapEx (Capital Expenditure): $45,000
- Projected Rent: $1,200/month
- Square Footage: 1,192 sqft
- Year Built: 1939
- Lot Size: 35 x 112ft
- Property Taxes (2024): $2,860.93
- Zoning: R1 (Residential)
Neighborhood Analysis
- Location: Cerveny North/Fairfield neighborhood
- Right between Puritan and W McNichols by I-39/Southfield Road, it is steps to great amenities such as the Greenfield Market (3 mins) and DMC Sinai Grace Hospital (6 mins), and Home Depot on Meyers (7 mins)
- Sits on a quiet, mostly brick street
- Market Insights: The Zillow Home Values Index shows the zip code’s average home price was over $96,000, with an above-20% premium on the overall Detroit Market. the area also appreciated over 3.5% YOY in September 2025
- One of our focus areas with many holdings in and around
Comparable Sales
- 16767 BILTMORE Street Detroit, MI 48235-3438, sold for $90,000 on Aug 12, 2024
- 16801 ASBURY Park Detroit, MI 48235-3535, sold for $117,000 on Jul 12, 2024
Full List – Scope of Work Completed
- Trash out the house and the garden
- Replace most of the existing doors
- Drywall repair on several rooms and areas
- Repaint entire house
- New kitchen countertops and cabinets with subway back splash (rental grade)
- Update the second bathroom, 1/2, with toilet, vanity and cabinets
- Update flooring throughout with vinyl flooring
- New bedroom and second floor carpets
- Reglaze main full bathroom walls and install new tub
- Reinstall main full bathroom toilet, cabinets and vanity
- Plumbing updated to code
- Electricals updated to code
- Deep cleaning throughout
- New furnace delivery and installation
- Install alarms and smoke detectors
- Replace kitchen window
- Install blinds on all the windows throughout the house
- Install door stoppers and deadbolt locks on both entrance doors
Final Takeaways
Adding value to properties in inferior condition is a simple concept, but executing it is a complex and demanding process.
This acquisition showcases our ability to manage budget, timing, and quality under challenging conditions. We closed on January 7, 2025, began construction immediately (weather permitting), completed the rehab in mid-March, and secured a tenant by April 1 at $1,250 per month — $50 above our initial projection.
Turning a vacant, distressed property into a fully leased asset in less than three months during a Michigan winter exceeded our own expectations. Our standard underwriting allows six months for lease-up on vacant acquisitions, so this result demonstrates not just the strong demand in the neighborhood, but our operational capacity to convert that demand with precision.
Rehab costs remain high due to inflation and labor shortages, while tenant expectations have steadily risen over the years.
For that reason, our ability to exercise full control over every stage of the rehab process is what sets this Fund apart from many of its fly-in competitors, who struggle to find the strong ground presence that we have.
At the time of this writing, the property’s Zillow listing has updated internal photos of our work, and the Zestimate came in at $115,000, reinforcing the value created by our approach.