1334 Fuller Ave SE, Grand Rapids, MI 49506 — 27.2% Cash-on-Cash

About this property

1334 Fuller Ave SE is a 3-bedroom, 2-bath single-family property in Grand Rapids, MI 49506, listed at $190,000 with 1,569 square feet on a 4,356-square-foot lot.

The listing is unusually candid about condition: the property has active mold throughout, and the seller requires cash buyers only — no financing contingencies, no conventional loan path. Anyone touring must wear a mask and is advised to wear gloves. That's not boilerplate; it's a material disclosure that shapes the entire investment calculus here.

The property has been on the market 13 days, which is short enough that it hasn't sat, but the cash-only requirement narrows the buyer pool considerably. Public records show a tax-assessed value of $267,200 against a $190,000 ask — a gap that either reflects the remediation discount or a lagging assessment cycle. The property is classified as non-owner occupied, so it has rental history or investor ownership in its background.

The two-stall garage and full basement add usable square footage and storage that support the rent estimate. The lot is modest at 4,356 square feet, consistent with an urban infill footprint rather than a suburban spread. Figures exclude depreciation tax benefits, which vary by individual tax situation.

The investment case

Rent covering 1.6 times the total monthly payment is the defining feature of this deal — an unusual margin at a time when most Grand Rapids listings produce negative cash flow.

List Price

$190,000

Monthly Payment (PITI+HOA)

$1,381

Principal & Interest

$974

Property Tax

$344

Insurance

$63

HOA

$0

PMI

$0

Est. Monthly Rent

$2,243

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

27.2%

Cap Rate

13.8%

Monthly Cash Flow

$862

Gross Rent Multiplier

7.1

DSCR

2.2

The city's average cash-on-cash return sits at -4.4%. This property's 27.2% CoC return isn't just above average — it clears the tenth-best deal on the local leaderboard, which itself requires 22.67% CoC to make the cut. That's a strong signal that this listing is operating in a different tier from typical Grand Rapids inventory.

The math: at $190,000 with 20% down, the total monthly payment lands at $1,381, broken down as $974 principal and interest, $344 property tax, and $63 insurance. Against an estimated rent of $2,243 per month, that leaves $862 in monthly cash flow before vacancy, maintenance, or capital expenditure reserves — none of which are trivial given the disclosed mold condition.

The cap rate of 13.8% and net operating income of $2,180/month reflect the gross rent minus operating expenses before debt service. A debt service coverage ratio of 2.2 means the property generates more than twice the income needed to cover the mortgage — lenders typically want 1.25, so this clears that bar by a wide margin if financing were available. It isn't, given the cash-only requirement, but the ratio still signals income cushion.

The gross rent multiplier of 7.1 is low by most market standards, which is consistent with a distressed-price acquisition. The question is how much of the $862 monthly cash flow gets absorbed by mold remediation costs in year one.

The income metrics are genuinely strong. The remediation budget is the variable that determines whether those metrics hold.

Annual return outlook

The 5-year total ROI projection of 36.0% draws from three sources, with cash flow doing the heaviest lifting by a wide margin.

Cash flow contributes 27.2 percentage points of the 36.0% total — the dominant component. Mortgage paydown adds 4.6 points, and an estimated 4.2% annual appreciation contributes the remaining 4.2 points. The appreciation figure is an estimate rather than a market-data-confirmed rate, so it's best treated as a reasonable assumption rather than a forecast.

The structure of this return matters. When cash flow is the primary driver, the investor isn't depending on price appreciation to make the deal work. That's a more defensible position than appreciation-led strategies, where a flat or declining market collapses the thesis. Here, even if Grand Rapids appreciates at half the estimated rate, the cash flow and paydown components still produce a meaningful return.

The risk to the 5-year outlook is front-loaded: remediation costs in year one will compress or eliminate cash flow temporarily. If remediation runs $20,000 to $40,000 — a reasonable range for significant mold work — the effective acquisition cost rises to $210,000-$230,000, which recalibrates the CoC and cap rate downward. The 5-year projections above use the $190,000 purchase price and don't account for that capital outlay.

How it compares to nearby for-sale listings

Five active 3-bedroom listings in ZIP 49506 provide a price context for evaluating the $190,000 ask — and the gap is substantial.

The for-sale comp median in this ZIP is $349,900. At $190,000, this property is priced 45.7% below that median. Even the lowest-priced comp — a 1,128-square-foot property on Sigsbee St at $258,900 — lists $68,900 above this asking price. On a price-per-square-foot basis, this property at roughly $121/sqft sits well below the comp range, where properties run from $229/sqft (Sigsbee) to $223/sqft (Boston St at $349,900).

That discount is entirely explained by condition. The comps are presumably move-in ready or near it. This property requires cash, carries active mold, and needs an unknown scope of remediation work before it can be occupied or rented. The assessed value of $267,200 suggests the underlying real estate — remediated and stabilized — would be worth meaningfully more than the ask.

Days on market across the comps range from 1 to 23 days, suggesting active buyer interest in this ZIP at market-rate prices. This property's 13 days on market is unremarkable given the cash-only constraint, which eliminates the majority of potential buyers from the pool.

Rental demand in this zip

Seven comparable 3-bedroom rentals in ZIP 49506 support the $2,243 estimated monthly rent with a median of $2,195 — a narrow gap that adds credibility to the cash-flow projection.

7 comparable rentals in ZIP 49506 — median $2,195/mo, range $2,000–$3,600/mo

The estimated rent of $2,243 sits $48 above the 7-comp median of $2,195, a 2.2% premium. That's close enough to treat the estimate as market-consistent rather than optimistic. The comp range runs from $2,000 to $3,600, with the upper end likely reflecting larger or updated properties. For a 1,569-square-foot property that needs work, landing near the median rather than the top of the range is the conservative read.

The rent-to-payment ratio of 1.6x is the most distinctive figure in this analysis. Most cash-flow-positive deals in competitive markets produce ratios closer to 1.1x or 1.2x. Getting to 1.6x typically requires either a below-market acquisition price, a high-rent market, or both. Here, the distressed pricing is doing most of the work.

The practical question is timing. The property can't be rented in its current condition. Remediation must precede any tenancy, which means the investor carries holding costs — mortgage equivalent, insurance, taxes — during the work period without offsetting rental income. How long that window lasts depends on the scope of the mold issue, which the listing doesn't quantify.

Who this property suits + risks to weigh

This property fits an experienced cash buyer who can self-fund remediation and carry the property through a stabilization period — not a first-time investor looking for a turnkey income stream.

Best fit

The ideal buyer here has cash reserves beyond the $190,000 purchase price, contractor relationships for mold remediation, and tolerance for a 3-to-6 month stabilization timeline before rental income begins. The financial metrics — 27.2% CoC, 13.8% cap rate, $862 monthly cash flow — are compelling enough to justify that patience if the remediation cost comes in at a manageable figure. Investors who've done distressed acquisitions before will recognize the pattern: a below-market price reflects a solvable problem, and the spread between assessed value ($267,200) and purchase price ($190,000) suggests real equity upside once the property is stabilized.

Risks to weigh

Mold remediation scope is the central unknown. Costs vary enormously depending on whether the mold is surface-level or structural, and the listing's language — "mold throughout the property" — doesn't inspire confidence that it's a minor issue. An investor who underestimates remediation by $30,000-$50,000 will find the CoC and cap rate figures look very different in practice. The cash-only requirement is also a constraint at exit: the property will need to clear habitability standards before a future buyer can finance a purchase, limiting the resale pool until remediation is documented and verified. The 1.78% effective property tax rate is on the higher end and is already baked into the $344/month tax line — no surprise there, but worth noting as a fixed cost that doesn't flex with vacancy.