Three-Unit Residential Income
New
For Sale
$399,000
1125 S Lafayette Ave, Royal Oak, MI 48067
Separate living spaces include updated mechanical equipment and established tenancy in a Royal Oak setting near downtown amenities.
Property Size1,915 SF
Days on Market6
Property Features for 1125 S Lafayette Ave
General Information
Standard status
Active
Size
1,915 SF
Property subtype
Investment
Units
Unit Mix
1 x 1BR/1BA, 1 x 1BR/1BA, 1 x 2BR/1BA
Multifamily Units
3
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$6,201
Building Details
Building Size
1,915 SF
Year Built
1911
Units
3
Listing Agency:
(248) 548-9100
Listed By:
Kate DeCavitte
(248) 548-9100
Source:
Elliman
Added: Aug 26
Changed: Aug 29
Last Checked: Aug 30 at 10:16PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Kate DeCavitte
Investment Insights
Based on property information with market context.
Built in 1911, this residential income property contains three separate units arranged across the basement and first-floor levels. The layout includes one one-bedroom, one-bath unit in the basement, a second one-bedroom, one-bath unit on the first floor, and a larger residence with living space on the first floor plus two bedrooms and a full bath upstairs.
Recent property updates include a newer hot water heater and boiler. Established tenants are in place, and the property occupies a large lot. The address is near downtown Royal Oak and Woodward, with access to freeways, shopping, dining, parks, and other area amenities. The property is also offered as a potential companion acquisition with 1119 S. Lafayette next door, subject to the terms of that separate opportunity.
Recent property updates include a newer hot water heater and boiler. Established tenants are in place, and the property occupies a large lot. The address is near downtown Royal Oak and Woodward, with access to freeways, shopping, dining, parks, and other area amenities. The property is also offered as a potential companion acquisition with 1119 S. Lafayette next door, subject to the terms of that separate opportunity.
Key Highlights
- Three separate residential units
- Unit mix includes two one‑bedroom, one‑bath units and one two‑bedroom unit with an additional full bath
- Built in 1911
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
$25,348
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
6.35%
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%
$506,960
$507.0K
Cap Rate 7%
$362,114
$362.1K
Cap Rate 9%
$281,644
$281.6K
Market Conditions
NOI Build-Up for 1,915 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
$37.9K $19.80/SF
− Vacancy
−$1.7K −$0.89/SF
EGI
$36.2K $18.91/SF
− OpEx
−$10.9K −$5.67/SF
NOI
$25.3K $13.24/SF
Area
Oakland County, MI
Vacancy
4.50%
Lease Rate
$19.80 /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%
$506,960
Cap Rate 7%
$362,114
Cap Rate 9%
$281,644
Alternative Uses
Best Use
Multifamily LT 5
$362.1K
$316.9K – $422.5K
NOI $25,348 @ 7.0% cap · market cap 6.35%
Second Best
Apartment 5plus
$335.6K
$293.6K – $391.5K
NOI $23,490 @ 7.0% cap · market cap 5.89%
Theoretical Best
Specialty Retail
$413.0K
$361.4K – $481.9K
NOI $28,913 @ 7.0% cap · market cap 7.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,448
Businesses Nearby
Explore this area
Business Placement
Demographics for 48067, MI
24,589
Population
13,714
Households
1.8
Avg Household Size
36
Median Age
67%
College-Educated
96%
High-School Grad
4.6 sq mi
ZIP Area
5,345
Density / Sq Mi
$107,355
Median Household Income
$76,700
Median Earnings
$1,435
Median Rent
$309,200
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?
Triplex - Separate living spaces include updated mechanical equipment and established tenancy in a Royal Oak setting near downtown amenities.
Where is this triplex located?
The property is located at 1125 S Lafayette Ave Royal Oak, MI.
What is the asking price?
The asking price for this property is $399,000.
What are key features of this property?
This property features: Three separate residential units; Unit mix includes two one‑bedroom, one‑bath units and one two‑bedroom unit with an additional full bath; Built in 1911
