430 Fernando St NE, Grand Rapids, MI 49505 — 26.8% Cash-on-Cash

About this property

430 Fernando St NE is a tenant-occupied, three-bedroom single-family property in Grand Rapids, MI 49505, listed at $160,000 after a $20,000 price reduction.

The property is already generating income — a tenant is in place, which removes the lease-up risk that typically follows an acquisition. That's a meaningful operational advantage at this price point.

At 1,158 square feet on a 2,613-square-foot lot, the footprint is compact but functional for a three-bedroom layout. The listing also flags an adjacent property at 428 Fernando that's listed separately, raising the possibility of a two-property acquisition on the same block for investors who want to scale without geographic dispersion.

The property has been on the market 30 days, which is moderate — not a distressed fire sale, but long enough to suggest the seller has room to negotiate. The $20,000 price reduction from the original ask reinforces that. Tax-assessed value sits at $157,600, nearly in line with the $160,000 listing price, which limits the argument that the property is dramatically mispriced but also confirms it's not overvalued relative to the public record. Non-owner-occupied status and no pre-foreclosure or auction flags round out a clean title picture.

The investment case

Rent covering 1.6 times the monthly payment is the headline — but the full financial picture at 430 Fernando St NE is more compelling than that single ratio suggests.

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

$1,875

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

26.8%

Cap Rate

13.7%

Monthly Cash Flow

$714

Gross Rent Multiplier

7.1

DSCR

2.1

At a $160,000 purchase price and a 6.55% 30-year fixed rate, the total monthly payment lands at $1,161, broken down as $863 in principal and interest, $245 in property taxes, and $53 in insurance. No HOA, no PMI. Estimated monthly rent of $1,875 leaves $714 in monthly cash flow after all carrying costs.

The cash-on-cash return of 26.8% is the number that demands attention. The city average cash-on-cash return across Grand Rapids is negative 4.4% — meaning the typical deal in this market is losing ground on a cash basis. This property sits 31 percentage points above that average. The tenth-best deal in the city's top-10 leaderboard carries a 22.67% cash-on-cash return, which is already strong; at 26.8%, 430 Fernando clears even that high bar.

The cap rate of 13.7% and net operating income of $1,822 per month reflect a property that generates real income independent of financing structure. The gross rent multiplier of 7.1 means the property pays for itself in rent in roughly seven years — well below the 10-to-12 range that typically signals fair value in a cash-flow market. The debt service coverage ratio of 2.1 means the property generates more than twice the income needed to cover the mortgage, a cushion that gives lenders comfort and investors a buffer against vacancy or expense spikes.

Figures exclude depreciation tax benefits, which vary by individual tax situation.

The investment case here isn't marginal — it's one of the stronger cash-flow setups available in Grand Rapids right now.

Annual return outlook

The 37.1% total five-year ROI at 430 Fernando St NE is driven primarily by cash flow, with appreciation and mortgage paydown adding meaningful secondary contributions.

Cash flow carries the most weight in this return stack, contributing 26.8 percentage points of the 37.1% total. That's the component an investor controls most directly — it's locked in from day one if the rent estimate holds and expenses stay in range.

Mortgage paydown adds 6.2 percentage points over the five-year horizon. At a $160,000 loan balance and 6.55% rate, the early amortization is modest on a dollar basis, but it compounds into equity that's accessible on refinance or sale.

Appreciation accounts for an estimated 4.2% annually, adding roughly 4.2 percentage points to the five-year total in this model. That figure is an estimate rather than a data-backed market measurement, so it should be treated as a reasonable assumption rather than a forecast. Grand Rapids has historically performed as a Midwest market with steady but unspectacular price growth — the 4.2% figure fits that profile, but investors should stress-test the return math at 2% and 0% appreciation to understand the floor.

Even stripping appreciation entirely, the cash flow and paydown components alone produce a 33% five-year return — a figure that holds up without relying on market tailwinds. That's the structural advantage of buying at a 13.7% cap rate in a market where most deals don't cash-flow at all.

How it compares to nearby for-sale listings

Five active three-bedroom listings in ZIP 49505 provide a price context for 430 Fernando St NE, and the gap between this property and its peers is significant.

The for-sale comp median in the immediate area is $319,900 — exactly double the $160,000 ask at 430 Fernando. At $138 per square foot (based on 1,158 sq ft), this property is priced well below the neighborhood's typical transaction range. The nearest price-comparable listing, 430 Knapp St NE at $160,000 for 1,308 square feet, is slightly larger but listed at the same price, implying a lower per-square-foot cost there — worth watching as a benchmark for what the market will actually clear at this price tier.

The other comps cluster between $314,999 and $499,900, representing a different buyer profile entirely. Those properties are larger, have more bathrooms, and carry price tags that produce negative or near-zero cash flow at current rates. For an investor running the numbers, the relevant comparison isn't to those listings — it's to the Knapp St comp and to the rental income the property can sustain.

At 30 days on market after a $20,000 price cut, 430 Fernando is moving slower than the one-day-old Knapp St listing, but faster than some of the higher-priced inventory. The price reduction signals the seller is motivated, and the tax-assessed value of $157,600 suggests the $160,000 ask is grounded in public record rather than speculative pricing.

Rental demand in this zip

Eight comparable three-bedroom rentals in ZIP 49505 establish a rent range that positions 430 Fernando St NE conservatively within the local market.

8 comparable rentals in ZIP 49505 — median $2,400/mo, range $1,600–$3,100/mo

Estimated monthly rent for this property is $1,875. The median rent across eight comparable three-bedroom rentals in ZIP 49505 is $2,400 per month — $525 above the estimate used in this analysis. That gap matters: the financial projections here are built on a number that sits below the midpoint of the local comp range, not at or above it.

The rental comp range runs from $1,600 to $3,100 per month. At $1,875, this property's projected rent is in the lower third of that spread. An investor who can push rent to the $2,000-to-$2,200 range — still well below the median — would see cash flow climb from $714 to roughly $900 or more per month, and the cash-on-cash return would improve accordingly.

The existing tenant is a double-edged factor. On one hand, it eliminates vacancy risk at acquisition. On the other, it means the current lease rate is set, and any rent adjustment to market levels depends on lease terms and Michigan landlord-tenant law timelines. Investors should request the current lease before closing to understand when market-rate repricing becomes available.

The rent estimate used in this analysis is conservative relative to the local comp set, which means the downside scenario is already partially priced in.

Who this property suits + risks to weigh

This property fits investors who want immediate cash flow without the lease-up period — and who can underwrite a single-bathroom, sub-1,200-square-foot layout in a working-class rental market.

Best fit

The deal is structured for a cash-flow investor, not an appreciation play. A 26.8% cash-on-cash return and $714 in monthly net income are the primary draws. At $160,000, the entry point is accessible for investors using conventional financing with 20% down, and the absence of HOA fees or PMI keeps the cost structure clean.

The adjacent 428 Fernando listing introduces a portfolio angle worth evaluating. Two properties on the same block, both tenant-occupied, could simplify management and create economies of scale for a local landlord or a small portfolio operator. That's a situational opportunity, not a requirement — but it's worth running the combined numbers.

Investors prioritizing depreciation benefits alongside cash flow will find the asset class (single-family, non-owner-occupied) straightforward to structure, though individual tax outcomes vary.

Risks to weigh

The single bathroom is a functional constraint that limits the tenant pool and could create friction at lease renewal if competing rentals offer more. At 1,158 square feet on a 2,613-square-foot lot, there's limited room for value-add improvements that would justify higher rent.

The 30-day market time and $20,000 price reduction suggest the property isn't drawing multiple offers. That's useful leverage in negotiation, but it also raises the question of why — condition, tenant situation, or simply price discovery. A thorough inspection is essential before closing.

Rent projections assume the current tenant renews or is replaced at $1,875 or above. If the unit turns vacant, the carrying cost is $1,161 per month until re-leased. At a 13.7% cap rate, the property can absorb some vacancy, but it's not immune to extended downtime.