Arts & Crafts
New
For Sale
$449,888
1027 E 5TH St, Royal Oak, MI 48067
Two distinct units combine period character, modern kitchen improvements, and dedicated parking and storage.
Property Size1,250 SF
Days on Market4
Property Features for 1027 E 5TH St
General Information
Standard status
Active
Size
1,250 SF
Property subtype
Investment
Taxes and HOA fees
Annual Taxes
$8,224
Building Details
Building Size
1,250 SF
Year Built
1925
Units
2
Listing Agency:
(248) 318-2068
Listed By:
Josh Taylor
(248) 318-2068
Source:
Elliman
Added: Aug 8
Changed: Aug 9
Last Checked: Aug 11 at 11:19AM
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 Josh Taylor
Investment Insights
Based on property information with market context.
Built in 1925, this Arts & Crafts-style duplex contains two separate residences with shared basement laundry and storage. The lower unit offers 2 bedrooms and 1 full bath, hardwood floors, a natural fireplace, arched doorways, original woodwork and doors, and an enclosed front porch. The upper unit includes 1 bedroom and 1 full bath, hardwood flooring, and a remodeled kitchen with granite countertops, custom cabinetry, stainless steel appliances, and upgraded fixtures. Its bathroom has a tiled shower and added vanity storage.
Parking is assigned by unit, with one garage space serving the lower residence. Property improvements include siding completed in 2023, a roof installed in 2006, a back porch and balcony updated in 2011, and a lower-unit tub surround replaced in 2010. Located at 1027 E 5TH St in Royal Oak, the duplex has a walk score of 85 and a bike score of 69, with downtown restaurants, shopping, entertainment, parks, and major freeways described as nearby.
Parking is assigned by unit, with one garage space serving the lower residence. Property improvements include siding completed in 2023, a roof installed in 2006, a back porch and balcony updated in 2011, and a lower-unit tub surround replaced in 2010. Located at 1027 E 5TH St in Royal Oak, the duplex has a walk score of 85 and a bike score of 69, with downtown restaurants, shopping, entertainment, parks, and major freeways described as nearby.
Key Highlights
- Two‑unit duplex built in 1925
- Lower residence features 2 bedrooms, 1 full bath, hardwood floors, fireplace, arched doorways, and enclosed front porch
- Upper residence offers 1 bedroom, 1 full bath, remodeled kitchen, granite countertops, and stainless steel appliances
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
$16,545
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
3.68%
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%
$330,900
$330.9K
Cap Rate 7%
$236,357
$236.4K
Cap Rate 9%
$183,833
$183.8K
Market Conditions
NOI Build-Up for 1,250 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
$24.8K $19.80/SF
− Vacancy
−$1.1K −$0.89/SF
EGI
$23.6K $18.91/SF
− OpEx
−$7.1K −$5.67/SF
NOI
$16.5K $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%
$330,900
Cap Rate 7%
$236,357
Cap Rate 9%
$183,833
Alternative Uses
Best Use
Multifamily LT 5
$236.4K
$206.8K – $275.8K
NOI $16,545 @ 7.0% cap · market cap 3.68%
Second Best
Apartment 5plus
$219.0K
$191.7K – $255.6K
NOI $15,333 @ 7.0% cap · market cap 3.41%
Theoretical Best
Specialty Retail
$269.6K
$235.9K – $314.6K
NOI $18,873 @ 7.0% cap · market cap 4.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
763
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?
Duplex - Two distinct units combine period character, modern kitchen improvements, and dedicated parking and storage.
Where is this duplex located?
The property is located at 1027 E 5TH St Royal Oak, MI.
What is the asking price?
The asking price for this property is $449,888.
What are key features of this property?
This property features: Two‑unit duplex built in 1925; Lower residence features 2 bedrooms, 1 full bath, hardwood floors, fireplace, arched doorways, and enclosed front porch; Upper residence offers 1 bedroom, 1 full bath, remodeled kitchen, granite countertops, and stainless steel appliances
