Renovated Mixed-Use
New
For Sale
$359,900
2388 W Auburn Rd, Rochester Hills, MI 48309
Duplex residences accompany a commercial garage with separate electrical service and a fenced storage yard.
Property Size1,512 SF
Days on Market5
Property Features for 2388 W Auburn Rd
General Information
Standard status
Active
Size
1,512 SF
Property subtype
Investment
Zoning
B-1
Additional Details
Opportunity Zone
Yes
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$4,628
Building Details
Building Size
1,512 SF
Year Built
1952
Year Renovated
2021
Buildings
2
Units
3
Tenancy
Multi
Listed By:
Julie Rea · License #6501370787
(248) 214-4334
Source:
Elliman
Added: Sep 20
Last Checked: Sep 22 at 7:35PM
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 Julie Rea
Investment Insights
Based on property information with market context.
This mixed-use property combines a two-unit residential duplex with a commercial garage and fenced storage yard. The three components have separate electrical boxes and meters, while a half bath in the mechanical room serves the units. The garage includes an insulated bay door, epoxied floors, and a furnace installed in 2025.
The property underwent a comprehensive renovation in 2021, including quartz kitchen countertops, stainless steel appliances, updated bathrooms, tile flooring, refinished hardwood floors, electrical panels, plumbing, air conditioning, and water-system equipment. Additional exterior improvements include the roof, siding, gutters, and cement porches. The roof was replaced in 2024, and the garage windows and flooring were updated in 2025.
Zoned B-1 and located in an Opportunity Zone, the property includes two leased duplex units and a garage currently used by the owner’s business. The garage may remain available for lease or be vacated by the current owner.
The property underwent a comprehensive renovation in 2021, including quartz kitchen countertops, stainless steel appliances, updated bathrooms, tile flooring, refinished hardwood floors, electrical panels, plumbing, air conditioning, and water-system equipment. Additional exterior improvements include the roof, siding, gutters, and cement porches. The roof was replaced in 2024, and the garage windows and flooring were updated in 2025.
Zoned B-1 and located in an Opportunity Zone, the property includes two leased duplex units and a garage currently used by the owner’s business. The garage may remain available for lease or be vacated by the current owner.
Key Highlights
- Two‑unit duplex plus a commercial garage and fenced storage yard
- Three addresses: 2388 & 2392 W Auburn and 2945 Devondale
- Comprehensive interior and systems renovation completed in 2021
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
$20,013
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
5.56%
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%
$400,260
$400.3K
Cap Rate 7%
$285,900
$285.9K
Cap Rate 9%
$222,367
$222.4K
Market Conditions
NOI Build-Up for 1,512 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
$29.9K $19.80/SF
− Vacancy
−$1.3K −$0.89/SF
EGI
$28.6K $18.91/SF
− OpEx
−$8.6K −$5.67/SF
NOI
$20.0K $13.24/SF
Area
Oakland County, MI
Vacancy
4.50%
Lease Rate
$19.80 /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%
$400,260
Cap Rate 7%
$285,900
Cap Rate 9%
$222,367
Alternative Uses
Best Use
Multifamily LT 5
$285.9K
$250.2K – $333.6K
NOI $20,013 @ 7.0% cap · market cap 5.56%
Second Best
Apartment 5plus
$265.0K
$231.8K – $309.1K
NOI $18,547 @ 7.0% cap · market cap 5.15%
Theoretical Best
Specialty Retail
$326.1K
$285.4K – $380.5K
NOI $22,829 @ 7.0% cap · market cap 6.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
2
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
316
Businesses Nearby
Explore this area
Business Placement
Demographics for 48309, MI
31,541
Population
11,635
Households
2.7
Avg Household Size
41
Median Age
63%
College-Educated
97%
High-School Grad
15.6 sq mi
ZIP Area
2,022
Density / Sq Mi
$117,788
Median Household Income
$60,689
Median Earnings
$1,625
Median Rent
$394,700
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?
Mixed-use property - Duplex residences accompany a commercial garage with separate electrical service and a fenced storage yard.
Where is this mixed-use property located?
The property is located at 2388 W Auburn Rd Rochester Hills, MI.
What is the asking price?
The asking price for this property is $359,900.
What are key features of this property?
This property features: Two‑unit duplex plus a commercial garage and fenced storage yard; Three addresses: 2388 & 2392 W Auburn and 2945 Devondale; Comprehensive interior and systems renovation completed in 2021
