Madison Heights Duplex with
For Sale
$275,000
31 W BARRETT Ave, Madison Heights, MI 48071
Cash-flowing duplex with value-add potential in Madison Heights.
Property Size1,584 SF
Days on Market129
Property Features for 31 W BARRETT Ave
General Information
Standard status
Active
Size
1,584 SF
Property subtype
Investment
Taxes and HOA fees
Annual Taxes
$5,501
Building Details
Building Size
1,584 SF
Year Built
1928
Units
2
Listing Agency:
M77 LLC
(586) 663-0473
Listed By:
Evan Bassy
(586) 663-0473
Source:
Elliman
Added: Apr 24
Changed: Aug 15
Last Checked: Aug 29 at 2:01PM
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 M77 LLC
Investment Insights
Based on property information with market context.
Located in Madison Heights, this upper-lower duplex presents an investment opportunity with potential for increased cash flow. The property consists of two separate units, both currently occupied by tenants on month-to-month leases. The upper unit participates in Section 8. The lower unit offers significant value-add potential. Tenants are responsible for their own utilities, while the landlord covers water expenses, which are then reimbursed through a bill-back system. The property was appraised at $290,000 in December 2025. The location is considered somewhat walkable, with a walk score of 64, and bikeable, with a bike score of 50. This property is suited for investors seeking rental income or owner-occupants interested in house hacking while benefiting from nearby local amenities.
Key Highlights
- Strong cash flow potential with value‑add upside
- Flexibility to raise rents due to month‑to‑month leases
- Utilities paid by tenants (except water, which is reimbursed)
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
$20,966
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
7.62%
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%
$419,320
$419.3K
Cap Rate 7%
$299,514
$299.5K
Cap Rate 9%
$232,956
$233.0K
Market Conditions
NOI Build-Up for 1,584 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
$31.4K $19.80/SF
− Vacancy
−$1.4K −$0.89/SF
EGI
$30.0K $18.91/SF
− OpEx
−$9.0K −$5.67/SF
NOI
$21.0K $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%
$419,320
Cap Rate 7%
$299,514
Cap Rate 9%
$232,956
Alternative Uses
Best Use
Multifamily LT 5
$299.5K
$262.1K – $349.4K
NOI $20,966 @ 7.0% cap · market cap 7.62%
Second Best
Apartment 5plus
$277.6K
$242.9K – $323.8K
NOI $19,430 @ 7.0% cap · market cap 7.07%
Theoretical Best
Specialty Retail
$341.7K
$299.0K – $398.6K
NOI $23,916 @ 7.0% cap · market cap 8.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
412
Businesses Nearby
Explore this area
Business Placement
Demographics for 48071, MI
28,468
Population
14,690
Households
1.9
Avg Household Size
39
Median Age
32%
College-Educated
89%
High-School Grad
7.1 sq mi
ZIP Area
4,010
Density / Sq Mi
$66,726
Median Household Income
$49,151
Median Earnings
$1,138
Median Rent
$190,300
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 - Cash-flowing duplex with value-add potential in Madison Heights.
Where is this duplex located?
The property is located at 31 W BARRETT Ave Madison Heights, MI.
What is the asking price?
The asking price for this property is $275,000.
What are key features of this property?
This property features: Strong cash flow potential with value‑add upside; Flexibility to raise rents due to month‑to‑month leases; Utilities paid by tenants (except water, which is reimbursed)
