Tenant-Occupied Duplex Near
New
For Sale
$360,000
1119 S Lafayette Ave, Royal Oak, MI 48067
Two residential units include a three-bedroom lower residence with basement and one-bedroom upper unit.
Property Size1,350 SF
Days on Market6
Property Features for 1119 S Lafayette Ave
General Information
Standard status
Active
Size
1,350 SF
Property subtype
Investment
Units
Unit Mix
1 x 3BR/2BA, 1 x 1BR/1BA
Multifamily Units
2
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$5,777
Building Details
Building Size
1,350 SF
Year Built
1918
Buildings
1
Units
2
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 6:58PM
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.
This duplex contains two separate residences within a 1918-built property. The lower-level unit provides three bedrooms, two full bathrooms, and access to a full basement, while the upper residence has one bedroom and one full bathroom. Established tenants are in place.
The property is located on S Lafayette Ave in Royal Oak, with stated proximity to downtown, Woodward, freeways, shopping, dining, and parks. Walk Score is 62 and Bike Score is 48, reflecting somewhat walkable and somewhat bikeable conditions. The property information also identifies an adjacent S. Lafayette property that may be purchased separately or in tandem.
The property is located on S Lafayette Ave in Royal Oak, with stated proximity to downtown, Woodward, freeways, shopping, dining, and parks. Walk Score is 62 and Bike Score is 48, reflecting somewhat walkable and somewhat bikeable conditions. The property information also identifies an adjacent S. Lafayette property that may be purchased separately or in tandem.
Key Highlights
- Two‑unit duplex with established tenants
- Lower residence includes 3 bedrooms, 2 full baths, and a full basement
- Upper residence offers 1 bedroom and 1 full bath
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
$17,869
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
4.96%
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%
$357,380
$357.4K
Cap Rate 7%
$255,271
$255.3K
Cap Rate 9%
$198,544
$198.5K
Market Conditions
NOI Build-Up for 1,350 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
$26.7K $19.80/SF
− Vacancy
−$1.2K −$0.89/SF
EGI
$25.5K $18.91/SF
− OpEx
−$7.7K −$5.67/SF
NOI
$17.9K $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%
$357,380
Cap Rate 7%
$255,271
Cap Rate 9%
$198,544
Alternative Uses
Best Use
Multifamily LT 5
$255.3K
$223.4K – $297.8K
NOI $17,869 @ 7.0% cap · market cap 4.96%
Second Best
Apartment 5plus
$236.6K
$207.0K – $276.0K
NOI $16,559 @ 7.0% cap · market cap 4.60%
Theoretical Best
Specialty Retail
$291.2K
$254.8K – $339.7K
NOI $20,383 @ 7.0% cap · market cap 5.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
630
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 residential units include a three-bedroom lower residence with basement and one-bedroom upper unit.
Where is this duplex located?
The property is located at 1119 S Lafayette Ave Royal Oak, MI.
What is the asking price?
The asking price for this property is $360,000.
What are key features of this property?
This property features: Two‑unit duplex with established tenants; Lower residence includes 3 bedrooms, 2 full baths, and a full basement; Upper residence offers 1 bedroom and 1 full bath
