Short-Term Rental Property With
For Sale
$799,900
5783 W Houghton Lake Drive, Houghton Lake, MI 48629
Commercial Sale, Houghton Lake, MI
Property Size6,750 SF
Lot Size0.67 Acres
Price / SF$118.50
Days on Market135
Property Features for 5783 W Houghton Lake Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Commercial/Res
Subdivision
NE 1/4 E 1/4
Directions
Emery to Towerhill to W Houghton Lake - Property on left corner of Towerhill and W Houghton Lake
Standard status
Active
APN
011-214-001-1670
Size
6,750 SF
Lot size
0.67 Acres
Taxes and HOA fees
Tax Description
SEC 14 TH N00DEG30'00''E 2160.00 FT FOR POB TH N88DEG30'00''W 209.87 FT TH N00DEG38'39''E 40.15 FT TH N49DEG41'48''E 81.78 FT TH N40DEG27'26''E 153.00 FT TO TH CL OF M55 TH S44DEG50'06''E ALG CL 69.67 FT TH S00DEG30'00''W ALG CL OF TOWER HILL RD
Legal Description
SEC 14 TH N00DEG30'00''E 2160.00 FT FOR POB TH N88DEG30'00''W 209.87 FT TH N00DEG38'39''E 40.15 FT TH N49DEG41'48''E 81.78 FT TH N40DEG27'26''E 153.00 FT TO TH CL OF M55 TH S44DEG50'06''E ALG CL 69.67 FT TH S00DEG30'00''W ALG CL OF TOWER HILL RD
Utilities
Water source
Well
Amenities
outdoor putting green
rooftop deck
built-in lounge area
Building Details
Floors in Building
2
Building materials
Brick, Block
Listing Agency:
NextHome Up North
(989) 366-3777
Listed By:
Morgan Robinson · License #6502428431
(517) 643-1834
Added: Apr 9
Changed: Aug 20
Last Checked: Aug 21 at 5:06AM
MLS# 201839313
Copyright © 2026 Water Wonderland Board of Realtors®. 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.
Located at 5783 W Houghton Lake Drive in Houghton Lake, Michigan, this short-term rental property combines a residence with substantial workshop space. The home includes approximately 2,750 square feet of living area, multiple en suites, gathering spaces, an outdoor putting green, and a rooftop deck with views of Houghton Lake. Brick and block construction and a private well are also noted.
A separate 50' x 80' shop adds 4,000 square feet of adaptable space, including a built-in lounge. The property occupies 0.67 acres and carries Commercial/Res zoning. The shop can accommodate vehicles, boats, recreational equipment, hobbies, storage, or business activity, while the property is also positioned for use as an Airbnb, retreat, or full-time residence.
A separate 50' x 80' shop adds 4,000 square feet of adaptable space, including a built-in lounge. The property occupies 0.67 acres and carries Commercial/Res zoning. The shop can accommodate vehicles, boats, recreational equipment, hobbies, storage, or business activity, while the property is also positioned for use as an Airbnb, retreat, or full-time residence.
Key Highlights
- Approximately 2,750 sq. ft. of living space
- 50' x 80' shop with built‑in lounge area
- Rooftop deck with Houghton Lake views
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
$41,111
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
5.14%
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%
$822,220
$822.2K
Cap Rate 7%
$587,300
$587.3K
Cap Rate 9%
$456,789
$456.8K
Market Conditions
NOI Build-Up for 6,750 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
$87.5K $12.96/SF
− Vacancy
−$24.2K −$3.59/SF
EGI
$63.2K $9.37/SF
− OpEx
−$22.1K −$3.28/SF
NOI
$41.1K $6.09/SF
Area
Roscommon County, MI
Vacancy
27.70%
Lease Rate
$12.96 /SF/Yr
Expense Ratio
35.00%
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%
$822,220
Cap Rate 7%
$587,300
Cap Rate 9%
$456,789
Alternative Uses
Best Use
Flex RnD
$587.3K
$513.9K – $685.2K
NOI $41,111 @ 7.0% cap · market cap 5.14%
Second Best
Industrial
$546.1K
$477.9K – $637.2K
NOI $38,230 @ 7.0% cap · market cap 4.78%
Theoretical Best
Office A
$1.11M
$972.0K – $1.30M
NOI $77,760 @ 7.0% cap · market cap 9.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
106
Businesses Nearby
Explore this area
Business Placement
Demographics for 48629, MI
7,420
Population
7,248
Households
1
Avg Household Size
56
Median Age
18%
College-Educated
90%
High-School Grad
77.5 sq mi
ZIP Area
96
Density / Sq Mi
$54,622
Median Household Income
$33,544
Median Earnings
$784
Median Rent
$142,300
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Short term rental property - Residential property with a large accessory shop, rooftop deck, multiple en suites, and commercial/residential zoning.
Where is this short term rental property located?
The property is located at 5783 W Houghton Lake Drive Houghton Lake, MI.
What is the asking price?
The asking price for this property is $799,900.
What are key features of this property?
This property features: Approximately 2,750 sq. ft. of living space; 50' x 80' shop with built‑in lounge area; Rooftop deck with Houghton Lake views
