Investment Summary:
Subject Property had a tenant that was vetted by our property manager prior to purchase. The initial Cash-on-Cash returns subject to property tax revision next year is projected at a highly respectable 10.8%. The acquisitions team places the sitting equity to be around 40% as-is.
This is a home-run by all accounts; however, there are qualifications to be mindful of. The difference in the internals of rented properties cannot be factored in as precisely as we would like when compared to nearby sales.
Even though the nearby sales support a value in the $130,000–$150,000 range once the property is cleaned up, the underwriting team recognizes that this equity is subject to how the tenant will leave the condition of the property.
Property Overview
Address: 15832 Prevost St, Detroit, MI 48227
- Purchase Price: $91,000
- Estimated After Repair Value (ARV): $135,000
- Original CapEx (Capital Expenditure): $5,000
- Current Rent: $1,150/month
- Square Footage: 2,100sqft
- Year Built: 1938
- Lot Size: 50 x 159ft
- Property Taxes (2024): $1,857.19
- Zoning: R1 (Residential)
Neighborhood Analysis
- Location: Crary neighborhood
- A solid location close to all the amenities such as the DMC Sinai Grace Hospital (5 mins), and the highly popular Greenfield Market (1 min).
- Sits on a quiet, mostly brick street. Next door is an empty lot.
- Many dining options off Fenkell and West McNichols.
- Market Insights: The Zillow Home Values Index shows the zip code’s average home price was around $70,000, and the area appreciated over 4.1% YOY as of September 2025
Comparable Sales
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15372 Prevost Street Detroit, MI 48227-1961, sold for $130,000 on Jul 12, 2024
- 15874 WINTHROP Street Detroit, MI 48227-2352, sold for $130,000 on Apr 11, 2024
Final Takeaways
In many investment properties, vetting an existing tenant can be extremely tricky.
A one-off landlord representing their property may share the rent roll if asked; however, sometimes it can be a gamble better not taken. Oftentimes, serious investors will prefer a vacant property over a property with a pre-existing tenant, because of the unknown risks that may lie ahead.
The reason Mutual Trust Management Advisors can take these risks eagerly is because we can rely on our acquisitions team to align with our property management company, Own It Detroit – Mutual Property Management, prior to an acquisition like this.
In fact, Mousa Ahmad, one of our managing partners and a veteran property manager, makes a point to visit every property before acquisition – sometimes more than once. If there is a tenant, Mousa will always speak to them to screen their integrity.
This level of on-the-ground presence is unheard of in a typical residential real estate fund, where the norm is to let hired contractors do the bulk of the heavy-lifting while managers often turn their focus on fund management.
With MTMA, we take pride in managing each acquisition from tenant screening through stabilization. While this level of hands-on involvement may not be obvious from reading a fund document, it is core to our investment philosophy — and, in our view, essential to producing the kind of outcomes we expect for our investors.