Listing Agency: Tremaine Real Estate

Listed By: Edward S Constable · License #6501377324 Show Phone

Source: Premiermichiganhomesearch

Added: Sep 8 Changed: Sep 9 Last Checked: Sep 13 at 12:02PM

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Investment Insights

Based on property information with market context.

This farmhouse duplex provides 2,248 square feet of living space arranged as two residential units. Each level includes a kitchen, living area, bedroom, and full bathroom. The main floor also has dining space, a family room, walk-in closet, and storage rooms, while the upper unit adds multiple closets and additional living flexibility. A front porch and rear deck extend the usable space outdoors.

The property encompasses 7.05 acres along Lahring Road in Argentine Township, Michigan, with open ground, mature trees, and rural surroundings. Agricultural, recreational, gardening, and animal-related uses are stated as possibilities for the acreage. Farm improvements include a traditional barn, a silo, and a Quonset-style barn with an open interior and concrete floor. Together, the residential layout and outbuildings offer substantial space for storage, hobbies, equipment, or workshop use.

Key Highlights

• 2,248‑square‑foot farmhouse configured as two residential units
• 7.05‑acre property along Lahring Road in Argentine Twp, MI
• Each unit includes a kitchen, living space, bedroom, and full bathroom

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

$18,471

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

6.72%

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%

$369,420 $369.4K

Cap Rate 7%

$263,871 $263.9K

Cap Rate 9%

$205,233 $205.2K

Market Conditions

NOI Build-Up for 2,248 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

$28.3K $12.60/SF

− Vacancy

−$1.9K −$0.86/SF

EGI

$26.4K $11.74/SF

− OpEx

−$7.9K −$3.52/SF

NOI

$18.5K $8.22/SF

Area

Shiawassee County, MI

Vacancy

6.84%

Lease Rate

$12.60 /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%

$369,420

Cap Rate 7%

$263,871

Cap Rate 9%

$205,233

Alternative Uses

Best Use

Multifamily LT 5

$263.9K

$230.9K – $307.9K (±1% cap)

NOI $18,471 @ 7.0% cap · market cap 6.72%

Second Best

Apartment 5plus

$236.0K

$206.5K – $275.4K (±1% cap)

NOI $16,522 @ 7.0% cap · market cap 6.01%

Theoretical Best

Office A

$428.6K

$375.0K – $500.0K (±1% cap)

NOI $30,001 @ 7.0% cap · market cap 10.91%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Duplexes

Lease Details

2

Residential units

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

1

Businesses Nearby

Explore this area Business Placement

Demographics for 48418, MI

4,389

Population

1,838

Households

2.4

Avg Household Size

44

Median Age

22%

College-Educated

95%

High-School Grad

41.0 sq mi

ZIP Area

107

Density / Sq Mi

$72,210

Median Household Income

$54,160

Median Earnings

$1,193

Median Rent

$246,500

Median Home Value

Market

Vacancy Rate% for Multifamily in Midwest region

6.5% 2022

7.5% 2023

7.8% 2024

8% 2025

Questions? Ask Rey

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What type of property is this? Where is this duplexes located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Duplex - Two-level living arrangement with separate kitchens, rural land, barns, and a silo.

Where is this duplex located?

The property is located at 12073 Lahring Rd Byron, MI.

What is the asking price?

The asking price for this property is $275,000.

What are key features of this property?

This property features: 2,248‑square‑foot farmhouse configured as two residential units; 7.05‑acre property along Lahring Road in Argentine Twp, MI; Each unit includes a kitchen, living space, bedroom, and full bathroom