Two-Unit Rental
For Sale
$350,000
Pending
633 E Eighth, Traverse City, MI 49686
MULTI_FAMILY - Traverse City, MI
Property Size1,428 SF
Lot Size0.09 Acres
Days on Market23
Property Features for 633 E Eighth
General Information
Property type
Residential Multi Family
Property subtype
Duplex
Zoning
Commercial,Rental History
Zoning description
Commercial, Rental History
Bedrooms
6
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 1, Bedroom 2, Bedroom 4, Bedroom 6, Bedroom 5, Bathroom 2, Bedroom 1, Bedroom 3
Patio and Porch features
Deck
Interior features
Fixer-Upper
Exterior features
Deck, Sidewalk
Appliances
Refrigerator, Oven/Range
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
From E 8th Street take Railroad Ave to the alley behind the property. There is parking in the back.
Subdivision
Grand Traverse
Standard status
Pending
Size
1,428 SF
Lot size
0.09 Acres
Taxes and HOA fees
Tax Description
LOT 33, BLK 6 HANNAH LAY & CO'S 5TH ADD
Legal Description
LOT 33, BLK 6 HANNAH LAY & CO'S 5TH ADD
Building Details
Year built
1891
Floors in Building
2
Number of units
2
Building materials
Frame
Roof type
Asphalt
Architectural style
Other
Listing Agency:
MI Properties North Real Estate Group
(231) 263-8049
Listed By:
Stacy Allman · License #6501378259
(231) 944-5296
Added: Jul 20
Changed: Aug 6
Last Checked: Aug 11 at 10:06AM
MLS# 1948200
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 two-unit rental duplex offers two long-term rental apartments, configured as two units within one 1,428-square-foot home. Each unit includes its own kitchen and living room, plus two bedrooms and one bathroom. The property is listed as fully leased, and is being sold as-is with interior features including a fixer-upper condition. Exterior amenities include a deck and sidewalk access, and the building is framed with an asphalt roof. Appliances noted include a refrigerator and an oven/range.
Set on a 0.09-acre lot along the Eighth Street corridor, the property is described as within walking distance to downtown shopping, restaurants, beaches, parks, and trails. Zoning is listed as D-2, which the remarks state allows long-term rentals, short-term rentals, or commercial use.
Built in 1891, the property presents an as-is opportunity for buyers comfortable evaluating its current condition and possible use under the provided zoning.
Set on a 0.09-acre lot along the Eighth Street corridor, the property is described as within walking distance to downtown shopping, restaurants, beaches, parks, and trails. Zoning is listed as D-2, which the remarks state allows long-term rentals, short-term rentals, or commercial use.
Built in 1891, the property presents an as-is opportunity for buyers comfortable evaluating its current condition and possible use under the provided zoning.
Key Highlights
- Two long‑term rental units, each with its own kitchen and living room
- Each unit offers two bedrooms and one bathroom
- Fully leased as‑is duplex for immediate occupancy by existing tenants
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
$15,465
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
4.42%
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%
$309,300
$309.3K
Cap Rate 7%
$220,929
$220.9K
Cap Rate 9%
$171,833
$171.8K
Market Conditions
NOI Build-Up for 1,428 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
$23.1K $16.20/SF
− Vacancy
−$1.0K −$0.73/SF
EGI
$22.1K $15.47/SF
− OpEx
−$6.6K −$4.64/SF
NOI
$15.5K $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%
$309,300
Cap Rate 7%
$220,929
Cap Rate 9%
$171,833
Alternative Uses
Best Use
Multifamily LT 5
$220.9K
$193.3K – $257.8K
NOI $15,465 @ 7.0% cap · market cap 4.42%
Second Best
Apartment 5plus
$193.9K
$169.7K – $226.2K
NOI $13,572 @ 7.0% cap · market cap 3.88%
Theoretical Best
Office A
$310.2K
$271.4K – $361.9K
NOI $21,715 @ 7.0% cap · market cap 6.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
100%
Occupancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,242
Businesses Nearby
Explore this area
Business Placement
Demographics for 49686, MI
25,859
Population
13,261
Households
2
Avg Household Size
45
Median Age
46%
College-Educated
95%
High-School Grad
47.3 sq mi
ZIP Area
547
Density / Sq Mi
$71,198
Median Household Income
$40,373
Median Earnings
$1,209
Median Rent
$295,500
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 - Two long-term rental units on a small downtown lot, with private decks and a frame construction building.
Where is this duplex located?
The property is located at 633 E Eighth Traverse City, MI.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: Two long‑term rental units, each with its own kitchen and living room; Each unit offers two bedrooms and one bathroom; Fully leased as‑is duplex for immediate occupancy by existing tenants
