Renovated Duplex with Private
New
For Sale
$264,999
18894 Reed St, Melvindale, MI 48122
Two-unit property with updated interiors, a full basement, and a detached two-car garage.
Property Size2,096 SF
Price / SF$126.43
Days on Market2
Property Features for 18894 Reed St
General Information
Standard status
Active
Size
2,096 SF
Property subtype
Multi-Family
Building Details
Year Built
1926
Listing Agency:
Community Choice Realty Inc
(248) 729-0011
Listed By:
In Network Real Estate Group
(248) 655-7955
Source:
Innetworkrealestate
Added: Sep 19
Last Checked: Sep 19 at 8:40AM
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 Community Choice Realty Inc
Investment Insights
Based on property information with market context.
This 2,096-square-foot duplex, built in 1926, contains two separate units with individual private entrances. Both units feature updated kitchens, bathrooms, and flooring, creating a consistent renovated interior throughout the property. The full basement is substantially finished but still requires flooring to complete the space, while the two-car garage adds on-site parking and storage capacity.
Located at 18894 Reed St. in Melvindale, the property is near shopping, restaurants, and downtown Melvindale. The two-unit configuration supports flexible occupancy, including use of one unit while leasing the other or leasing both units.
Located at 18894 Reed St. in Melvindale, the property is near shopping, restaurants, and downtown Melvindale. The two-unit configuration supports flexible occupancy, including use of one unit while leasing the other or leasing both units.
Key Highlights
- 2,096‑square‑foot duplex with two separate units
- Each unit has its own private entrance
- Updated kitchens, bathrooms, and flooring
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
$20,577
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
7.76%
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%
$411,540
$411.5K
Cap Rate 7%
$293,957
$294.0K
Cap Rate 9%
$228,633
$228.6K
Market Conditions
NOI Build-Up for 2,096 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
$31.4K $15.00/SF
− Vacancy
−$2.0K −$0.98/SF
EGI
$29.4K $14.03/SF
− OpEx
−$8.8K −$4.21/SF
NOI
$20.6K $9.82/SF
Area
Wayne County, MI
Vacancy
6.50%
Lease Rate
$15.00 /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%
$411,540
Cap Rate 7%
$293,957
Cap Rate 9%
$228,633
Alternative Uses
Best Use
Multifamily LT 5
$294.0K
$257.2K – $343.0K
NOI $20,577 @ 7.0% cap · market cap 7.76%
Second Best
Apartment 5plus
$269.9K
$236.2K – $314.9K
NOI $18,895 @ 7.0% cap · market cap 7.13%
Theoretical Best
Specialty Retail
$388.1K
$339.6K – $452.7K
NOI $27,164 @ 7.0% cap · market cap 10.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
383
Businesses Nearby
Explore this area
Business Placement
Demographics for 48122, MI
12,825
Population
4,693
Households
2.7
Avg Household Size
32
Median Age
15%
College-Educated
70%
High-School Grad
2.7 sq mi
ZIP Area
4,750
Density / Sq Mi
$41,356
Median Household Income
$30,744
Median Earnings
$1,116
Median Rent
$113,100
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Midwest region
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Frequently Asked Questions
What type of property is this?
Duplex - Two-unit property with updated interiors, a full basement, and a detached two-car garage.
Where is this duplex located?
The property is located at 18894 Reed St Melvindale, MI.
What is the asking price?
The asking price for this property is $264,999.
What are key features of this property?
This property features: 2,096‑square‑foot duplex with two separate units; Each unit has its own private entrance; Updated kitchens, bathrooms, and flooring
