Downtown Duplex Rental
For Sale
$350,000
Pending
633 E Eighth, Traverse City, MI 49686
Duplex property with two long-term rental units, each featuring separate kitchens, living rooms, and two bedrooms.
Property Size1,428 SF
Lot Size0.09 Acres
Days on Market22
Property Features for 633 E Eighth
General Information
Standard status
Pending
Size
1,428 SF
Lot size
0.09 Acres
Property subtype
Investment
Zoning
D-2
Occupancy
100%
Additional Details
Multifamily Units
2
Building Details
Year Built
1891
Units
2
Listing Agency:
MI Properties North Real Estate Group
(231) 944-5296
Listed By:
Stacy Allman · License #6501378259
(231) 944-5296
Source:
Elliman
Added: Jul 21
Changed: Aug 8
Last Checked: Jul 29 at 1:22PM
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 MI Properties North Real Estate Group
Investment Insights
Based on property information with market context.
This downtown duplex investment offers 1,428 square feet of residential income space on 0.09 acres. The property is currently configured as two long-term rental units, and each unit includes its own kitchen and living room, along with two bedrooms and one bathroom. The property is fully leased, with tenants interested in remaining in place, and is being sold as-is.
Located along the Eighth Street corridor in Traverse City, the property is described as within walking distance to downtown shopping, restaurants, beaches, parks, and trails. The listing notes D-2 zoning, which allows long-term rentals, short-term rentals, or commercial uses.
As presented in the offering materials, this is a stable, income-producing residential property with a flexible D-2 zoning designation supporting multiple operating paths.
Located along the Eighth Street corridor in Traverse City, the property is described as within walking distance to downtown shopping, restaurants, beaches, parks, and trails. The listing notes D-2 zoning, which allows long-term rentals, short-term rentals, or commercial uses.
As presented in the offering materials, this is a stable, income-producing residential property with a flexible D-2 zoning designation supporting multiple operating paths.
Key Highlights
- 1,428‑SF downtown Traverse City duplex built in 1891 on 0.09 acres
- Configured as 2 long‑term rental units; each unit has its own kitchen and living room
- Each unit offers 2 bedrooms and 1 bathroom; fully leased with tenants who wish to stay
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
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 - Duplex property with two long-term rental units, each featuring separate kitchens, living rooms, and two bedrooms.
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: 1,428‑SF downtown Traverse City duplex built in 1891 on 0.09 acres; Configured as 2 long‑term rental units; each unit has its own kitchen and living room; Each unit offers 2 bedrooms and 1 bathroom; fully leased with tenants who wish to stay
