Gun Lake Short-Term Rental
For Sale
$175,000
2380 S Patterson Rd, Shelbyville, MI 49344
Building positioned across from the Gun Lake launch area with township approval for Airbnb use.
Property Size1,782 SF
Price / SF$98.20
Days on Market36
Property Features for 2380 S Patterson Rd
General Information
Standard status
Active
Size
1,782 SF
Building Details
Year Built
2001
Listing Agency:
Northern Star Real Estate
Listed By:
John C Brown
(616) 886-2434
Source:
Katie-k
Added: Jul 29
Changed: Aug 31
Last Checked: Sep 1 at 9:37PM
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 Northern Star Real Estate
Investment Insights
Based on property information with market context.
This 1,782-square-foot building, constructed in 2001, is positioned across from the Gun Lake launch site and boat launch. Township approval for Airbnb use supports its short-term rental classification.
The property is located at 2380 S Patterson Rd in Shelbyville, Michigan. The building is offered in as-is condition, with a cash sale specified.
The property is located at 2380 S Patterson Rd in Shelbyville, Michigan. The building is offered in as-is condition, with a cash sale specified.
Key Highlights
- Across from Gun Lake launch site and boat launch
- Township approval for Airbnb use
- 1,782 square feet
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
$11,436
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
6.53%
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%
$228,720
$228.7K
Cap Rate 7%
$163,371
$163.4K
Cap Rate 9%
$127,067
$127.1K
Market Conditions
NOI Build-Up for 1,782 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
$22.0K $12.36/SF
− Vacancy
−$1.2K −$0.69/SF
EGI
$20.8K $11.67/SF
− OpEx
−$9.4K −$5.25/SF
NOI
$11.4K $6.42/SF
Area
Allegan County, MI
Vacancy
5.60%
Lease Rate
$12.36 /SF/Yr
Expense Ratio
45.00%
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%
$228,720
Cap Rate 7%
$163,371
Cap Rate 9%
$127,067
Alternative Uses
Best Use
Apartment 5plus
$163.4K
$143.0K – $190.6K
NOI $11,436 @ 7.0% cap · market cap 6.53%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$16.73M
$14.64M – $19.52M
NOI $1,171,438 @ 7.0% cap · market cap 669.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
5
Businesses Nearby
Explore this area
Business Placement
Demographics for 49344, MI
3,847
Population
2,101
Households
1.8
Avg Household Size
45
Median Age
14%
College-Educated
91%
High-School Grad
31.0 sq mi
ZIP Area
124
Density / Sq Mi
$76,420
Median Household Income
$39,596
Median Earnings
$1,289
Median Rent
$272,900
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?
Short term rental property - Building positioned across from the Gun Lake launch area with township approval for Airbnb use.
Where is this short term rental property located?
The property is located at 2380 S Patterson Rd Shelbyville, MI.
What is the asking price?
The asking price for this property is $175,000.
What are key features of this property?
This property features: Across from Gun Lake launch site and boat launch; Township approval for Airbnb use; 1,782 square feet
