Building Details

Year Built 9999

Listing Agency: RE/MAX Advisors l***@laurajanski.com Show Phone

Listed By: Laura Janski · License #6501328247 Show Phone

Source: Xome

Added: Jul 22 Changed: Jul 31 Last Checked: Aug 4 at 3:27AM

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Investment Insights

Based on property information with market context.

This mixed-use property is divided into two separate sections: a larger, fully renovated two-bedroom cottage operated as a VRBO and a smaller salon space providing additional monthly rental income. The cottage includes a warm wood ceiling, open living area, full kitchen, Smart TV, Wi-Fi, nautical-inspired character, and on-site trailer parking.

The property is located at 1401 Saint Clair Boulevard in Algonac, two blocks from the public boat launch and within walking distance of downtown. The surrounding area includes the St. Clair River, Lake St. Clair, marinas, fishing, parks, dining, and waterfront activities.

Key Highlights

• Two separate sections: a renovated two‑bedroom cottage and a salon space
• Cottage operated as a VRBO with additional monthly rental income from salon space
• Cottage includes a warm wood ceiling, open living area, and full kitchen

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

$10,807

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

5.03%

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%

$216,140 $216.1K

Cap Rate 7%

$154,386 $154.4K

Cap Rate 9%

$120,078 $120.1K

Market Conditions

NOI Build-Up for 836 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

$15.9K $18.96/SF

− Vacancy

−$412 −$0.49/SF

EGI

$15.4K $18.47/SF

− OpEx

−$4.6K −$5.54/SF

NOI

$10.8K $12.93/SF

Area

St. Clair County, MI

Vacancy

2.60%

Lease Rate

$18.96 /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%

$216,140

Cap Rate 7%

$154,386

Cap Rate 9%

$120,078

Alternative Uses

Best Use

Apartment 5plus

$578.7K

$506.4K – $675.1K (±1% cap)

NOI $40,508 @ 7.0% cap · market cap 18.85%

Second Best

Retail

$154.4K

$135.1K – $180.1K (±1% cap)

NOI $10,807 @ 7.0% cap · market cap 5.03%

Theoretical Best

Multifamily LT 5

$628.5K

$549.9K – $733.2K (±1% cap)

NOI $43,993 @ 7.0% cap · market cap 20.47%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Short term rental ...

Suggested Use

Top Pick Dental Office Real Estate Agency Spa & Massage Center Building Supply Law Firm Hair Salon

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

212

Businesses Nearby

Explore this area Business Placement

Demographics for 48001, MI

11,721

Population

5,787

Households

2

Avg Household Size

50

Median Age

18%

College-Educated

94%

High-School Grad

19.0 sq mi

ZIP Area

617

Density / Sq Mi

$64,538

Median Household Income

$35,987

Median Earnings

$921

Median Rent

$250,000

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

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Mixed-use property - Two separate sections support short-term lodging and salon rental use near downtown Algonac.

Where is this mixed-use property located?

The property is located at 1401 Saint Clair Boulevard Unit SourceFi Algonac, MI.

What is the asking price?

The asking price for this property is $214,900.

What are key features of this property?

This property features: Two separate sections: a renovated two‑bedroom cottage and a salon space; Cottage operated as a VRBO with additional monthly rental income from salon space; Cottage includes a warm wood ceiling, open living area, and full kitchen