1236 Wieland Pl NW, Grand Rapids, MI 49504 — 25.9% Cash-on-Cash

About this property

A three-bedroom, one-bath single-family property in Grand Rapids's 49504 zip, listed at $160,000 with 51 days on market and a recent $5,000 price reduction.

The property carries the kind of update history that matters to a landlord: the bathroom was remodeled in 2025, the furnace replaced in 2022, and new plumbing was run throughout the entire property in 2020. Those aren't cosmetic upgrades — they're the mechanical systems that determine maintenance calls in year one and two of ownership.

The seller is transparent about two issues that explain the below-market price. The Michigan basement needs repair, and a DIY lead-based paint test on the kitchen ceiling came back positive. The seller notes that test was the only location tested. Both items require professional assessment before closing; neither is unusual in a property of this age, but both affect renovation budgets and financing options.

At 1,084 square feet on a 3,049-square-foot lot, the footprint is modest. The non-owner-occupied status confirms this is already functioning as an investment property in the market. Fifty-one days on market is longer than the comparable for-sale listings in the zip, most of which moved in under three days — a signal that the disclosed conditions are doing pricing work the seller has already partially addressed with the price cut.

The investment case

A 25.9% cash-on-cash return against a zip average of 1.1% and a city average of -4.4% makes this the outlier deal in Grand Rapids right now.

List Price

$160,000

Monthly Payment (PITI+HOA)

$1,161

Principal & Interest

$863

Property Tax

$245

Insurance

$53

HOA

$0

PMI

$0

Est. Monthly Rent

$1,852

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

25.9%

Cap Rate

13.5%

Monthly Cash Flow

$691

Gross Rent Multiplier

7.2

DSCR

2.1

The numbers start with a $160,000 purchase price and an estimated monthly rent of $1,852. After a total monthly payment of $1,161 — covering principal, interest at the current 6.55% rate, $245 in property taxes, and $53 in insurance — the property generates $691 in monthly cash flow. That's $8,292 annually on a cash investment that, at 20% down, sits around $32,000.

The cap rate of 13.5% and net operating income of $1,799 per month reflect a property priced well below its income-generating capacity. The gross rent multiplier of 7.2 means the purchase price is recovered in rent in just over seven years — a tight ratio by any standard. The debt service coverage ratio of 2.1 means the property generates more than twice what's needed to cover the mortgage, which is the kind of cushion that absorbs vacancy without turning cash-flow-positive months into losses.

To put the 25.9% CoC in context: the tenth-best deal on Grand Rapids's leaderboard sits at 22.67%. This property clears that bar. The city average is -4.4%, meaning the typical Grand Rapids rental purchase at today's prices loses money on a cash-flow basis. This property is not a typical Grand Rapids purchase.

Figures exclude depreciation tax benefits, which vary by individual tax situation. The tax-assessed value of $142,400 against a $160,000 purchase price suggests limited near-term reassessment risk.

Annual return outlook

The projected 36.3% five-year total ROI is driven primarily by cash flow, with appreciation and mortgage paydown as secondary contributors.

The ROI breakdown tells a clear story about where the return is coming from. Cash flow contributes 25.9 percentage points of the 36.3% total — it's the engine, not a supporting actor. Mortgage paydown adds 6.2 points as tenants reduce the principal balance over five years. Appreciation contributes an estimated 4.2 points annually, though that figure is a modeled estimate rather than a market-data-confirmed rate, so it carries more uncertainty than the cash-flow and paydown components.

The practical implication: even if appreciation underperforms, the cash flow and paydown components alone would produce a return that exceeds most comparable investments in this city. The appreciation upside is real but not load-bearing for the investment thesis.

For-sale comps in ZIP 49504 are trading between $279,000 and $349,876 for similar three-bedroom properties — a median of $299,900. A $160,000 entry point sits 47% below that median. If the property appreciates toward comp values over five years, the appreciation contribution would be substantially higher than the 4.2% annual estimate implies. That's speculative, but the gap between this property's price and the comp median is wide enough to be worth noting.

Cash flow is doing the work here. Appreciation is a bonus, not the thesis.

How it compares to nearby for-sale listings

Five active three-bedroom listings in ZIP 49504 provide a clear price context for this property's $160,000 ask.

The for-sale comp median in 49504 is $299,900, and every comparable listing is priced between $279,000 and $349,876. This property's $160,000 listing price is 47% below that median. On a price-per-square-foot basis, the comp set ranges from roughly $212 to $212 per square foot for the smaller units — this property, at $160,000 across 1,084 square feet, prices at $148 per square foot.

The days-on-market contrast is notable. Four of the five comps went active within the last three days. This property has been listed 51 days. In a market where comparable inventory moves that quickly, a 51-day listing signals that buyers have priced in the disclosed conditions — the basement repair and the lead paint test result — and the $5,000 price reduction reflects the seller's acknowledgment of that friction.

For an investor rather than an owner-occupant, the comp set is actually useful information: it suggests the rental market has a healthy supply of comparable properties, which supports the rent estimate, and that the resale market for similar properties is active. An exit at or near comp values, even at a discount for the property's condition, would represent a substantial gain from a $160,000 basis.

Rental demand in this zip

Eight comparable rentals in ZIP 49504 with three bedrooms set a median rent of $2,100 per month, against an estimated $1,852 for this property.

8 comparable rentals in ZIP 49504 — median $2,100/mo, range $1,795–$4,500/mo

The estimated rent of $1,852 per month sits $248 below the $2,100 median across the eight-unit comp set. The comp range runs from $1,795 to $4,500 per month, though the upper end of that range likely reflects larger or substantially upgraded units. At $1,852, the projection is conservative relative to the median — it's closer to the floor of the comp range than the ceiling.

That conservatism is a feature for underwriting purposes. The cash-flow figures already show $691 per month at $1,852. If the property rents at the comp median of $2,100, the monthly cash flow would expand by roughly $248, pushing the annual figure above $11,000 and the cash-on-cash return higher still. The investment case doesn't depend on achieving median rents.

The debt service coverage ratio of 2.1 means the property can absorb a meaningful vacancy period — roughly five months of zero rent annually — before cash flow turns negative. That's a meaningful buffer in a market where three-bedroom rentals are commanding $1,795 at the low end of the comp range.

Rent is projected conservatively below the zip median, which means the cash-flow case has room to outperform rather than disappoint.

Who this property suits + risks to weigh

This property fits an investor who can absorb upfront remediation costs and wants the strongest cash-flow yield available in ZIP 49504.

Best fit

The ideal buyer is an experienced landlord or house-hacker comfortable navigating disclosed material defects before closing. The lead paint disclosure requires professional testing and likely remediation — that's a cost item, not a dealbreaker, but it rules out buyers using certain loan types without additional steps. The Michigan basement repair is a similar category: a known cost that needs a contractor's estimate before the purchase price makes full sense.

For a cash buyer or a buyer using conventional financing with eyes open to the remediation budget, the 25.9% cash-on-cash return and $691 monthly cash flow represent a genuine yield that's nearly impossible to find elsewhere in this market. The city average CoC is -4.4%. The zip average is 1.1%. This property is in a different tier.

Risks to weigh

The lead paint disclosure is the most consequential risk. A single DIY test on one surface is not a full assessment, and the actual scope of lead presence in a property built in 1890 could be broader. Professional remediation costs vary widely. Financing could be complicated if an appraisal flags the condition.

The Michigan basement repair is a structural cost that needs a professional estimate. Without knowing the scope, it's difficult to model the true all-in acquisition cost.

Fifty-one days on market in a zip where comparable listings move in days suggests other buyers have run the numbers and passed. That's not a reason to avoid the property — the seller has priced the issues in — but it's a reason to complete thorough due diligence before assuming the disclosed items are the only items.

The 4.2% annual appreciation projection is a modeled estimate, not a market-confirmed figure. The cash-flow case stands without it, but buyers should not underwrite to appreciation as a primary return driver.