908 Eastern Ave SE, Grand Rapids, MI 49507 — 27.0% Cash-on-Cash

About this property

908 Eastern Ave SE is a five-bedroom, two-bathroom single-family property in Grand Rapids, MI 49507, offering 2,082 square feet on a 6,534-square-foot lot.

The listing description surfaces a few details worth underwriting. Original stained glass in the foyer and hardwood floors throughout suggest the property has retained period character rather than been stripped and flipped cheaply — a signal that major cosmetic work may already be behind the next owner. The kitchen is described as notably spacious, which matters for tenant retention in a five-bedroom unit where multiple occupants share common space. First-floor laundry is a practical amenity that commands a premium in the rental market.

The property is already classified as non-owner occupied in public records, meaning it has operated as a rental. That removes one common uncertainty for investors: the unit doesn't need to be repositioned from owner-occupant condition. At five days on market, there's no stale-listing discount to explain away — this is a fresh listing priced to move. The tax-assessed value of $236,800 sits above the $209,900 ask, which is an unusual spread and worth verifying with the local assessor, but it doesn't raise a red flag on its own.

The investment case

908 Eastern Ave SE produces an estimated $945 in monthly cash flow after all carrying costs — a 27.0% cash-on-cash return that leads every comparable listing in ZIP 49507.

List Price

$209,900

Monthly Payment (PITI+HOA)

$1,467

Principal & Interest

$1,076

Property Tax

$321

Insurance

$70

HOA

$0

PMI

$0

Est. Monthly Rent

$2,412

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

27.0%

Cap Rate

13.4%

Monthly Cash Flow

$945

Gross Rent Multiplier

7.3

DSCR

2.2

The ZIP 49507 average cash-on-cash sits at 8.2%. This property's 27.0% return is more than three times that figure. The city-wide average is negative 4.4%, meaning most Grand Rapids listings at current prices and rates don't cover their debt service at 20% down. This property does — decisively.

The math: a $209,900 purchase at 6.55% on a 30-year fixed mortgage produces a principal-and-interest payment of $1,076. Add $321 in monthly property taxes and $70 in insurance, and total monthly outlay is $1,467. Against an estimated rent of $2,412, the net operating income runs $2,342 per month, yielding a 13.4% cap rate. The debt service coverage ratio of 2.2 means the property generates $2.20 in operating income for every $1.00 of debt service — a cushion that gives a lender comfort and an investor room to absorb a vacancy month without going underwater.

The gross rent multiplier of 7.3 is low. A GRM below 8 generally indicates the purchase price is compressed relative to rental income — useful context when stress-testing assumptions. If rent came in 10% below estimate, cash flow would drop to roughly $704/month. The deal still works. Figures exclude depreciation tax benefits, which vary by individual tax situation.

The investment case here is straightforward cash flow, not a value-add story or an appreciation bet.

Annual return outlook

The five-year total ROI projection of 35.8% is built on three components, with cash flow doing the majority of the work.

Cash flow contributes 27.0 percentage points of the 35.8% five-year ROI — roughly 75% of the total return. Mortgage paydown adds 4.6 points as principal amortizes. Appreciation adds an estimated 4.2 points annually, though that figure is an estimate rather than a data-scraped market trend, so it carries more uncertainty than the cash-flow and paydown components.

The structure matters. When appreciation is the primary return driver, an investor is exposed to market timing risk. Here, appreciation is the smallest of the three components. Even if property values in Grand Rapids stay flat over five years, the cash-flow and paydown contributions alone would still represent a meaningful return on the down payment. That's a more defensible position than most Grand Rapids listings, where the city's negative average CoC means investors are typically underwriting appreciation to justify the purchase.

The 4.2% annual appreciation estimate, if it materializes, would add roughly $8,800 to $9,000 in equity per year on a $209,900 asset — a secondary tailwind rather than the load-bearing wall of this investment thesis.

How it compares to nearby for-sale listings

Four active five-bedroom listings in ZIP 49507 provide a pricing frame for 908 Eastern Ave SE, which comes in below every comparable on an absolute-price basis.

The for-sale comp median in this ZIP sits at $264,900 — $55,000 above the ask here. On a price-per-square-foot basis, 908 Eastern Ave SE is even more compelling: at roughly $101/sqft across 2,082 square feet, it undercuts comps that range from $139/sqft (50 Withey St SW at $239,900 on 1,362 sqft) to $178/sqft (842 Hall St SE at $285,000 on 1,596 sqft). This property offers the most square footage of any five-bedroom currently listed in the ZIP at the lowest absolute price.

Days on market tells a secondary story. Two of the four comps have been sitting for over 79 days, with one at 117 days. This listing is five days old. That contrast suggests the $209,900 price point is generating real market interest rather than sitting at an aspirational number. Whether that translates to a competitive offer situation is an execution risk, not a valuation one.

The price gap between this property and the comp median isn't explained by a foreclosure flag or auction status — public records show neither. The most likely explanation is the combination of price strategy and the property's current non-owner-occupied status, which can narrow the buyer pool to investors, creating less competition from owner-occupants.

Rental demand in this zip

Two comparable five-bedroom rentals in ZIP 49507 establish a rent range of $2,500 to $2,600 per month, putting the $2,412 estimated rent for this property at a modest discount to market.

2 comparable rentals in ZIP 49507 — median $2,600/mo, range $2,500–$2,600/mo

The rental comp median for five-bedroom units in ZIP 49507 is $2,600/month. This property's estimated rent of $2,412 sits roughly 7% below that figure. That's a conservative posture — the underwrite doesn't require capturing top-of-market rent to pencil. If a tenant is secured at the comp median of $2,600, monthly cash flow would increase by approximately $188, pushing the CoC return higher still.

Two comps is a thin data set. It's enough to establish a directional range but not enough to call the market with precision. The conservative read is to anchor on $2,412 and treat anything above that as upside. The aggressive read is that a well-presented five-bedroom with original hardwood floors and a spacious kitchen can realistically compete for the $2,600 comp median, particularly given the property's square footage advantage over competing rentals.

The five-bedroom rental market in this ZIP carries inherent demand from larger households and group renters, both of which tend to produce longer average tenancies than studios or one-bedrooms. That's a qualitative factor — it doesn't change the underwrite, but it's relevant when estimating vacancy assumptions over a five-year hold.

Who this property suits + risks to weigh

This property fits a cash-flow-focused investor who wants immediate yield rather than a value-add project, and who can underwrite a five-bedroom tenant profile in a non-owner-occupied asset.

Best fit

An investor seeking reliable monthly income rather than a speculative appreciation play will find the numbers here unusually clean. The 2.2 debt service coverage ratio provides a meaningful buffer against vacancy or unexpected expenses without requiring rent to perform above the conservative estimate. The property is already operating as a rental, which removes the repositioning timeline. A buyer using conventional financing at 20% down has a total out-of-pocket of roughly $41,980 plus closing costs — a manageable entry point relative to the $945/month cash flow it generates.

This also suits an investor who has already deployed capital in higher-priced Grand Rapids assets and wants a high-yield complement to balance a portfolio where appreciation is doing more of the work.

Risks to weigh

Five-bedroom rentals attract a narrower tenant pool than two- or three-bedroom units. Extended vacancy periods in a large-format unit can erode the cash flow advantage quickly. The property tax rate of 1.78% is meaningful — at $321/month, taxes represent the second-largest line item after debt service, and reassessment risk exists given the gap between the $209,900 purchase price and the $236,800 tax-assessed value. A reassessment toward the purchase price would reduce taxes; a reassessment upward would compress margins.

The appreciation estimate of approximately 4.2% annually is an estimate, not a tracked market data point. Investors who need that component to justify the purchase should stress-test the return at 0% appreciation. Even then, the cash-flow and paydown components produce a return profile that outperforms the city average by a wide margin.