Turnkey Income-Producing Hospitality
For Sale
$790,000
302 Tuscola Road, Bay City, MI 48708
Two-story, 18-room short-stay residence on 1.4 acres.
Property Size9,900 SF
Lot Size1.40 Acres
Price / SF$79.80
Days on Market123
Property Features for 302 Tuscola Road
General Information
Standard status
Active
Size
9,900 SF
Lot size
1.40 Acres
Property subtype
General Commercial
Amenities
3
Asphalt
irreg
Garage.
Building Details
Year Built
1925
Listing Agency:
Century 21 Signature Realty
(989) 921-7000
Listed By:
Diana Bay · License #6506040025
Source:
Xome
Added: Apr 24
Changed: Aug 23
Last Checked: Aug 24 at 3:09AM
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 Century 21 Signature Realty
Investment Insights
Based on property information with market context.
This expansive two-story property, featuring over 9,900 square feet of space, is situated on 1.4 acres. Currently operating as an income-producing business, the property serves traveling medical professionals seeking short-term accommodations near local hospitals. The business name and concept may be included in the sale. Renovations completed in Spring 2025 include a commercial kitchen, multiple bathrooms and showers, a theater room, an exercise area, and a fireplace lounge. The property features 18 rooms and has immediate revenue potential. Significant updates include a boiler replaced in 2022, central air installed in 2024, and a new roof in 2024. The location has a bike score of 54, indicating it is bikeable, and a walk score of 81, signifying it is very walkable.
Key Highlights
- Turnkey, income‑producing business and property with immediate revenue potential of $26k per month.
- Expansive 9,900+ sq ft, two‑story property on 1.4 acres.
- Newly refinished 18‑room short‑stay residence, ideal for upscale, short‑term accommodations.
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
$42,210
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
5.34%
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%
$844,200
$844.2K
Cap Rate 7%
$603,000
$603.0K
Cap Rate 9%
$469,000
$469.0K
Market Conditions
NOI Build-Up for 9,900 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
$101.0K $10.20/SF
− Vacancy
−$12.1K −$1.22/SF
EGI
$88.9K $8.98/SF
− OpEx
−$46.7K −$4.71/SF
NOI
$42.2K $4.26/SF
Area
Bay County, MI
Vacancy
12.00%
Lease Rate
$10.20 /SF/Yr
Expense Ratio
52.50%
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%
$844,200
Cap Rate 7%
$603,000
Cap Rate 9%
$469,000
Alternative Uses
Best Use
Hotel Hospitality
$603.0K
$527.6K – $703.5K
NOI $42,210 @ 7.0% cap · market cap 5.34%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.79M
$1.57M – $2.09M
NOI $125,453 @ 7.0% cap · market cap 15.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
485
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48708, MI
25,860
Population
12,625
Households
2
Avg Household Size
41
Median Age
17%
College-Educated
89%
High-School Grad
29.1 sq mi
ZIP Area
889
Density / Sq Mi
$50,216
Median Household Income
$31,978
Median Earnings
$703
Median Rent
$98,500
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Prankienas Properties LLC — 1112 Center Ave, Bay City, MI 48708
- David Reaume — 1112 center ave, bay city, mi 48708
Frequently Asked Questions
What type of property is this?
Bed & breakfast - Two-story, 18-room short-stay residence on 1.4 acres.
Where is this bed & breakfast located?
The property is located at 302 Tuscola Road Bay City, MI.
What is the asking price?
The asking price for this property is $790,000.
What are key features of this property?
This property features: Turnkey, income‑producing business and property with immediate revenue potential of $26k per month.; Expansive 9,900+ sq ft, two‑story property on 1.4 acres.; Newly refinished 18‑room short‑stay residence, ideal for upscale, short‑term accommodations.
