Legal Duplex with Hair Salon Upper
For Sale
Under Contract
$599,000
535 W Twelfth Street, Traverse City, MI 49684
SINGLE_FAMILY - Traverse City, MI
Property Size2,490 SF
Lot Size0.28 Acres
Price / SF$240.56
Days on Market55
Property Features for 535 W Twelfth Street
General Information
Property type
Residential
Property subtype
Duplex
Zoning
Residential,Multi-Family,
Zoning description
Residential, Multi-Family, Special Use
Bedrooms
3
Bathrooms
3
Full bathrooms
1
Rooms
Bedroom 1, Bathroom 3, Bedroom 2, Den, Bathroom 2, Bathroom 1, Bedroom 3
Patio and Porch features
Patio
Interior features
Granite Kitchen Tops, Den/Study
Exterior features
Patio, Sidewalk, Landscaped
Fireplace
1
Appliances
Refrigerator, Oven/Range, Dishwasher, Microwave, Washer, Dryer, Blinds, Drapes, Curtain Rods
Elementary school district
Traverse City Area Public Schools
Middle school district
Traverse City Area Public Schools
High school district
Traverse City Area Public Schools
Directions
500 block on W 12th St downtown.
Subdivision
Hannah's 5th add
Standard status
Active Under Contract
Size
2,490 SF
Lot size
0.28 Acres
Taxes and HOA fees
Tax Description
LOTS 16-17-18 BLOCK 5 HANNAH'S 5TH ADD
Legal Description
LOTS 16-17-18 BLOCK 5 HANNAH'S 5TH ADD
Amenities
greenhouse addition
outdoor fireplace
Building Details
Year built
1948
Floors in Building
2
Building materials
Frame
Roof type
Asphalt
Architectural style
Other
Listing Agency:
REMAX Bayshore - Union St TC · RE/MAX International
(231) 941-4500
Listed By:
Troy Daily · License #6501442788
(231) 288-7676
Added: Jun 18
Changed: Aug 2
Last Checked: Aug 11 at 5:06PM
MLS# 1946785
Copyright © 2026 Northern Great Lakes Realtors MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This legal duplex offers two separate living setups on a triple lot. The main level features a 2-bed, 1-bath layout across 1,870 sq ft, with a kitchen remodeled in 2020 and a bathroom updated in 2023. Additional living space includes a dining room and a greenhouse addition added in 2009. Recent exterior upgrades include new storm doors and an updated front entry in 2026. The lower level includes a full kitchen, full bathroom, and a non-conforming room that could be converted to a bedroom with the addition of an egress window.
The upper unit is currently operating as a licensed hair salon and was updated in 2012, with A/C added at that time. The space is described as converting easily back to a 1-bed, 1-bath apartment, with removal of a wash station and tile replacement. The furnace and water heater were replaced in 2018.
Outside, the property includes a patio and an outdoor fireplace, plus landscaped grounds. Parking includes a 2-car driveway accessed from the alley, with street parking serving the salon. The home is frame construction with an asphalt roof and was built in 1948; siding and storms were updated approximately 2003.
The upper unit is currently operating as a licensed hair salon and was updated in 2012, with A/C added at that time. The space is described as converting easily back to a 1-bed, 1-bath apartment, with removal of a wash station and tile replacement. The furnace and water heater were replaced in 2018.
Outside, the property includes a patio and an outdoor fireplace, plus landscaped grounds. Parking includes a 2-car driveway accessed from the alley, with street parking serving the salon. The home is frame construction with an asphalt roof and was built in 1948; siding and storms were updated approximately 2003.
Key Highlights
- Main level: 2 bed, 1 bath across 1,870 sq ft; kitchen remodeled 2020 and bathroom updated 2023
- Greenhouse addition added in 2009, plus dining room and additional character‑forward interior space
- Upper unit operates as a licensed hair salon; updated 2012 with A/C added then, and converts to 1‑bed/1‑bath
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$26,966
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.50%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$539,320
$539.3K
Cap Rate 7%
$385,229
$385.2K
Cap Rate 9%
$299,622
$299.6K
Market Conditions
NOI Build-Up for 2,490 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$40.3K $16.20/SF
− Vacancy
−$1.8K −$0.73/SF
EGI
$38.5K $15.47/SF
− OpEx
−$11.6K −$4.64/SF
NOI
$27.0K $10.83/SF
Area
Grand Traverse County, MI
Vacancy
4.50%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$539,320
Cap Rate 7%
$385,229
Cap Rate 9%
$299,622
Alternative Uses
Best Use
Multifamily LT 5
$385.2K
$337.1K – $449.4K
NOI $26,966 @ 7.0% cap · market cap 4.50%
Second Best
Apartment 5plus
$338.1K
$295.8K – $394.4K
NOI $23,665 @ 7.0% cap · market cap 3.95%
Theoretical Best
Office A
$540.9K
$473.3K – $631.1K
NOI $37,864 @ 7.0% cap · market cap 6.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
738
Businesses Nearby
Explore this area
Business Placement
Demographics for 49684, MI
22,025
Population
10,959
Households
2
Avg Household Size
49
Median Age
46%
College-Educated
96%
High-School Grad
52.8 sq mi
ZIP Area
417
Density / Sq Mi
$75,678
Median Household Income
$39,553
Median Earnings
$1,216
Median Rent
$375,700
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Legal duplex on a triple lot with an upper unit operating as a licensed hair salon and a remodeled main-level residence.
Where is this duplex located?
The property is located at 535 W Twelfth Street Traverse City, MI.
What is the asking price?
The asking price for this property is $599,000.
What are key features of this property?
This property features: Main level: 2 bed, 1 bath across 1,870 sq ft; kitchen remodeled 2020 and bathroom updated 2023; Greenhouse addition added in 2009, plus dining room and additional character‑forward interior space; Upper unit operates as a licensed hair salon; updated 2012 with A/C added then, and converts to 1‑bed/1‑bath
