53 Baylis St SW, Grand Rapids, MI 49507 — 30.3% Cash-on-Cash

About this property

53 Baylis St SW is a four-bedroom, three-full-bath single-family property in Grand Rapids, MI 49507, listed at $219,900 after a $10,000 price reduction.

The property spans 1,696 square feet on a 4,356-square-foot lot and is currently non-owner occupied, which streamlines the path to immediate rental income. Public records place the tax-assessed value at $191,600 — roughly 13% below the asking price, suggesting limited near-term assessment shock for a new buyer.

The listing describes a spacious layout with multiple living areas and three full bathrooms, a combination that broadens the tenant pool considerably for a property at this price point. The basement level includes three additional nonconforming spaces that could function as offices, guest rooms, or — pending local code review — future conversion candidates. That optionality matters for an investor weighing long-term repositioning.

At 45 days on market with an already-reduced price, the seller's motivation is visible in the data. The kitchen and common areas are described as needing updates, which explains the discount relative to the for-sale comp median. For a buyer comfortable with cosmetic work, that's where the sweat-equity story lives. The property is not in pre-foreclosure or auction status, so the transaction path is straightforward.

The investment case

At 30.3% cash-on-cash return, this property posts the highest CoC in ZIP 49507 — nearly four times the zip's 8.2% average and well above the city-wide average of -4.4%.

List Price

$219,900

Monthly Payment (PITI+HOA)

$1,536

Principal & Interest

$1,127

Property Tax

$336

Insurance

$73

HOA

$0

PMI

$0

Est. Monthly Rent

$2,648

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

30.3%

Cap Rate

14.1%

Monthly Cash Flow

$1,112

Gross Rent Multiplier

6.9

DSCR

2.3

The numbers start with a $219,900 purchase price financed at the current 30-year fixed rate of 6.55%. Total monthly payment — principal, interest, taxes at 1.78% effective rate, and insurance — comes to $1,536. Against an estimated $2,648 monthly rent, that leaves $1,112 in monthly cash flow before maintenance and vacancy reserves.

The cap rate of 14.1% and net operating income of $2,575 per month tell the same story from a different angle: this property generates income well in excess of what the market requires to justify the price. A gross rent multiplier of 6.9 means the property pays for itself in under seven years of gross rent — lean by any standard. The debt service coverage ratio of 2.3 gives a lender — and an investor — significant cushion against vacancy or rent softness.

Context matters here. The Grand Rapids city-wide average cash-on-cash return is -4.4%, meaning most listings in this market don't generate positive cash flow at 20% down. Even the tenth-best deal on the city leaderboard clears 22.67% CoC. This property at 30.3% sits above that threshold, placing it among the top performers in a city that doesn't hand out cash flow easily.

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

The investment case here is straightforward: the price discount relative to comps has created a yield that's difficult to replicate elsewhere in this market.

Annual return outlook

The projected 5-year total ROI of 39.1% is built on three components, with cash flow doing the heaviest lifting by a wide margin.

Cash flow contributes 30.3 percentage points of that 39.1% total — meaning the income stream alone nearly equals the full return projection. Mortgage paydown adds 4.6 percentage points as the tenant's rent reduces the principal balance each month. Appreciation contributes an estimated 4.2 percentage points annually, though that figure carries a softer confidence level given it's based on modeled projections rather than scraped transaction data. Treat it as a reasonable directional assumption, not a guarantee.

The structure of this return matters for investor planning. Because cash flow dominates, the thesis doesn't depend on Grand Rapids appreciating at any particular rate. An investor who holds this property through a flat or modestly declining appreciation environment still collects meaningful income. That's a different risk profile than a deal where appreciation is doing most of the work.

Mortgage paydown at 4.6% is the quiet component — it compounds in the background without requiring any active management. Over five years, at a $219,900 price point, that's real equity accumulation driven entirely by tenant payments.

The 39.1% total ROI ranks this deal well above the city's top-10 threshold of 22.67%, reinforcing that this isn't a marginal outlier — it's a structurally strong cash-flow position in a market where positive cash flow is already uncommon.

How it compares to nearby for-sale listings

Five comparable four-bedroom listings in ZIP 49507 establish a for-sale median of $285,000 — $65,100 above this property's asking price.

53 Baylis St SW is priced at $219,900 against a comp median of $285,000, a 22.8% discount. On a price-per-square-foot basis, the gap is similarly wide: at 1,696 square feet, this property prices at roughly $130/sqft, while the comparable at 835 Eastern Ave SE — the only other three-bath listing in the set — spans 2,804 square feet at $260,000, or $93/sqft. The Dickinson St and Temple St listings both show 1,274 and 1,577 square feet respectively at $285,000 and $290,000, implying per-sqft figures well above $180.

The price differential reflects the listing's own disclosure: the kitchen and common areas need updating. That's a real cost, but it also explains why the yield metrics look the way they do. The comp set is moving quickly — four of five listings have been on market for seven days or fewer, suggesting active buyer demand in this zip at the $260,000-$335,000 range. At 45 days, 53 Baylis has sat longer than its peers, which combined with the $10,000 price reduction signals room for negotiation.

For an investor, the comp spread is useful context: a renovated version of this property likely commands a price closer to the $260,000-$285,000 range, implying meaningful upside for a buyer willing to put in the work at acquisition.

Rental demand in this zip

Three comparable rentals in ZIP 49507 with four bedrooms set a median rent of $2,200 per month, ranging from $1,847 to $2,350.

3 comparable rentals in ZIP 49507 — median $2,200/mo, range $1,847–$2,350/mo

The estimated monthly rent of $2,648 sits $448 above the three-comp median of $2,200 — a 20% premium. That gap deserves scrutiny. The comp range tops out at $2,350, meaning the $2,648 estimate exceeds even the highest comparable by roughly $300 per month. An investor underwriting this deal should stress-test the rent assumption against the $2,200 median and the $2,350 ceiling before committing to the projection.

Running the numbers at $2,200: total monthly payment of $1,536 against $2,200 rent leaves $664 in monthly cash flow. That's still a positive, cash-flowing position — and the CoC return at that rent level would be lower but still meaningfully above the city average. At the $2,350 ceiling, cash flow reaches $814 per month. The property's investment case holds at comp-median rents; it doesn't require the top-line estimate to pencil.

The three-bath configuration is the main differentiator that could support a rent premium over two-bath comps. Three full bathrooms in a four-bedroom rental is uncommon at this price point and genuinely expands the tenant pool — larger households, roommate situations, and professional shares all become viable. Whether that translates to a $300-$450 premium above the comp ceiling is a local market question worth testing before closing.

Who this property suits + risks to weigh

This property fits a value-add investor comfortable with cosmetic renovation who wants immediate cash flow rather than an appreciation-dependent thesis.

Best fit

The deal structure rewards a buyer who can close quickly on a non-owner-occupied property, manage or perform light renovation work, and place a tenant within 30-60 days. The three-full-bath layout and basement bonus spaces give a landlord genuine marketing advantages in the four-bedroom rental segment. At a $219,900 entry point — 40% below the city median listing price of $369,000 — the capital requirement is accessible for investors who aren't deploying institutional-scale equity.

The DSCR of 2.3 also makes this an attractive candidate for DSCR loan financing, which evaluates the property's income rather than the borrower's personal income. That opens the deal to self-employed buyers and investors with multiple existing mortgages.

Risks to weigh

The rent estimate of $2,648 exceeds the highest comparable in the three-comp set by roughly $300. Underwriting at comp-median rent of $2,200 is the conservative discipline here. The listing's own language about the kitchen and common areas needing updates means renovation costs need a real budget line before the cash-flow projection is treated as bankable.

At 45 days on market with a $10,000 price cut already absorbed, the property has been passed over. That's worth understanding before closing — a pre-offer walkthrough focused on structural and mechanical systems (roof, HVAC, plumbing) is essential given the price point and current condition signals. The nonconforming basement spaces are an asset in concept but require local code verification before being factored into any rent or conversion plan.