Historic Side-by-Side
For Sale
$269,900
Pending
1206 Terrace St, Muskegon, MI 49442
Two-bedroom units feature wood floors, bay windows, pocket doors, and a large front porch.
Property Size2,126 SF
Days on Market10
Property Features for 1206 Terrace St
General Information
Standard status
Pending
Size
2,126 SF
Property subtype
Multi-Family
Units
Unit Mix
2 x 2BR
Multifamily Units
2
Amenities
wood floors
bay windows
pocket doors
beautiful appliances
huge front porch
Building Details
Year Built
1800
Buildings
1
Listing Agency:
Keller Williams Realty-Great Lakes
(586) 541-4000
Listed By:
Oak & Stone Real Estate
(248) 266-0584
Source:
Oakandstonerealestate
Added: Sep 6
Changed: Sep 14
Last Checked: Sep 14 at 9:00AM
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 Keller Williams Realty-Great Lakes
Investment Insights
Based on property information with market context.
This side-by-side duplex at 1206 Terrace St in Muskegon City, MI, contains 2,126 SF with two bedrooms in each unit. Interior features include wood flooring, bay windows, pocket doors, generous rooms, substantial closets, and appliances. A large front porch adds to the property's historic character, while the building has been maintained with care since its 1800 construction.
One unit has operated as a short- and mid-term rental, while the other was most recently occupied by a tenant for more than two years. The City of Muskegon previously issued a 6-year rental certification; that certification does not transfer with ownership. The property includes a flexible two-unit layout suited to residential income use or an owner-occupant arrangement.
One unit has operated as a short- and mid-term rental, while the other was most recently occupied by a tenant for more than two years. The City of Muskegon previously issued a 6-year rental certification; that certification does not transfer with ownership. The property includes a flexible two-unit layout suited to residential income use or an owner-occupant arrangement.
Key Highlights
- 2,126 SF side‑by‑side duplex
- Two bedrooms in each unit
- Wood floors, bay windows, and pocket doors
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
$20,628
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
7.64%
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%
$412,560
$412.6K
Cap Rate 7%
$294,686
$294.7K
Cap Rate 9%
$229,200
$229.2K
Market Conditions
NOI Build-Up for 2,126 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
$31.1K $14.64/SF
− Vacancy
−$1.7K −$0.78/SF
EGI
$29.5K $13.86/SF
− OpEx
−$8.8K −$4.16/SF
NOI
$20.6K $9.70/SF
Area
Muskegon County, MI
Vacancy
5.32%
Lease Rate
$14.64 /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%
$412,560
Cap Rate 7%
$294,686
Cap Rate 9%
$229,200
Alternative Uses
Best Use
Multifamily LT 5
$294.7K
$257.9K – $343.8K
NOI $20,628 @ 7.0% cap · market cap 7.64%
Second Best
Apartment 5plus
$263.0K
$230.2K – $306.9K
NOI $18,412 @ 7.0% cap · market cap 6.82%
Theoretical Best
Hotel Hospitality
$19.97M
$17.47M – $23.29M
NOI $1,397,574 @ 7.0% cap · market cap 517.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
1,276
Businesses Nearby
Explore this area
Business Placement
Demographics for 49442, MI
45,342
Population
17,759
Households
2.6
Avg Household Size
37
Median Age
11%
College-Educated
87%
High-School Grad
41.0 sq mi
ZIP Area
1,106
Density / Sq Mi
$50,069
Median Household Income
$33,257
Median Earnings
$889
Median Rent
$116,100
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Midwest region
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Frequently Asked Questions
What type of property is this?
Duplex - Two-bedroom units feature wood floors, bay windows, pocket doors, and a large front porch.
Where is this duplex located?
The property is located at 1206 Terrace St Muskegon, MI.
What is the asking price?
The asking price for this property is $269,900.
What are key features of this property?
This property features: 2,126 SF side‑by‑side duplex; Two bedrooms in each unit; Wood floors, bay windows, and pocket doors
