Mixed-Use Property with Income
For Sale
$239,900
13434 M 40, Gobles, MI 49055
Versatile property featuring salon, apartment, and pole barn.
Property Size1,630 SF
Price / SF$147.18
Days on Market103
Property Features for 13434 M 40
General Information
Standard status
Active
Size
1,630 SF
Property subtype
Industrial
Amenities
3
Building Details
Year Built
1975
Listing Agency:
Berkshire Hathaway HomeServices MI
(269) 598-7047
Listed By:
Greg Miller · License #6502368101
(269) 598-7047
Source:
Xome
Added: May 18
Changed: Aug 23
Last Checked: Aug 26 at 5:54AM
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 Berkshire Hathaway HomeServices MI
Investment Insights
Based on property information with market context.
This mixed-use property presents an opportunity for investment or owner-occupancy, offering multiple income streams and flexible usage possibilities. The well-maintained building includes a fully operational 5-chair salon, a one-bedroom apartment, and a pole barn. The pole barn features bay doors, dedicated office space, and storage or workshop area. Currently, two salon chairs are leased on a week-to-week basis at $120 per week per chair. The apartment is rented month-to-month at $740 per month, with an estimated market rent potential of $850 to $900 per month. The pole barn is presently vacant but has historically generated up to $900 per month in rental income. The pole barn is equipped with its own well and septic system, along with a full bathroom, heat, and central air, making it suitable for various commercial or light industrial uses. The salon space offers flexibility for conversion into professional office space, another small business venture, or a second residential unit, subject to local approvals. The property's size is 1630 square feet. The seller is open to negotiating the sale of the salon items. This property offers versatility and opportunity for investors seeking income potential or entrepreneurs looking for a live-work setup.
Key Highlights
- Multiple income streams from salon chair rentals, apartment rental, and potential pole barn rental.
- Versatile pole barn with bay doors, office space, bathroom, heat, A/C, and separate well/septic, suitable for commercial/industrial use.
- Fully operational 5‑chair salon, providing immediate income potential.
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
$16,921
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
7.05%
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%
$338,420
$338.4K
Cap Rate 7%
$241,729
$241.7K
Cap Rate 9%
$188,011
$188.0K
Market Conditions
NOI Build-Up for 1,630 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
$25.2K $15.48/SF
− Vacancy
−$1.1K −$0.65/SF
EGI
$24.2K $14.83/SF
− OpEx
−$7.3K −$4.45/SF
NOI
$16.9K $10.38/SF
Area
Van Buren County, MI
Vacancy
4.20%
Lease Rate
$15.48 /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%
$338,420
Cap Rate 7%
$241,729
Cap Rate 9%
$188,011
Alternative Uses
Best Use
Retail
$241.7K
$211.5K – $282.0K
NOI $16,921 @ 7.0% cap · market cap 7.05%
Second Best
Office B
$238.7K
$208.8K – $278.5K
NOI $16,707 @ 7.0% cap · market cap 6.96%
Theoretical Best
Multifamily LT 5
$20.15M
$17.64M – $23.51M
NOI $1,410,827 @ 7.0% cap · market cap 588.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
77
Businesses Nearby
Explore this area
Business Placement
Demographics for 49055, MI
6,211
Population
3,197
Households
1.9
Avg Household Size
45
Median Age
18%
College-Educated
90%
High-School Grad
57.5 sq mi
ZIP Area
108
Density / Sq Mi
$65,717
Median Household Income
$40,838
Median Earnings
$878
Median Rent
$161,900
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Versatile property featuring salon, apartment, and pole barn.
Where is this mixed-use property located?
The property is located at 13434 M 40 Gobles, MI.
What is the asking price?
The asking price for this property is $239,900.
What are key features of this property?
This property features: Multiple income streams from salon chair rentals, apartment rental, and potential pole barn rental.; Versatile pole barn with bay doors, office space, bathroom, heat, A/C, and separate well/septic, suitable for commercial/industrial use.; Fully operational 5‑chair salon, providing immediate income potential.
