Two-Bay Auto
New
For Sale
$195,000
5861 W Houghton Lake Drive, Houghton Lake, MI 48629
COMMERCIAL - Houghton Lake, MI
Property Size1,161 SF
Lot Size0.27 Acres
Price / SF$167.96
Days on Market5
Property Features for 5861 W Houghton Lake Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Commercial
Parking features
Parking Lot
Subdivision
Houghton Lake Hills
Directions
M-55 towards Federal Ave, business is on the corner of M-55 and Knollside Rd. Across from Lakeview Park
Standard status
Active
APN
011-420-005-0000
Size
1,161 SF
Lot size
0.27 Acres
Taxes and HOA fees
Tax Description
LOT S 5 TO 8 INCL EXC COM AT NW COR OF LOT 8 TH SE'LY ON LOT LINE 1.5 FT TH SW'LY AT RT ANG 30 FT TH SW'LY IN DIR LINE TO SW COR OF LOT 8 TH NE'LY ON W'LY LINE OF LOT 8 TO POB HOUGHTON LAKE HILLS.
Tax Annual Amount
1061
Legal Description
LOT S 5 TO 8 INCL EXC COM AT NW COR OF LOT 8 TH SE'LY ON LOT LINE 1.5 FT TH SW'LY AT RT ANG 30 FT TH SW'LY IN DIR LINE TO SW COR OF LOT 8 TH NE'LY ON W'LY LINE OF LOT 8 TO POB HOUGHTON LAKE HILLS.
Utilities
Water source
Well
Amenities
office space
restroom
floor drain
large parking lot
Houghton Lake views
Building Details
Floors in Building
1
Listing Agency:
Century 21 Realty North Higgins Lake
(989) 821-1800
Listed By:
Stephanie Adamson
(248) 978-2449
Added: Aug 11
Changed: Aug 12
Last Checked: Aug 15 at 6:06AM
MLS# 201842132
Copyright © 2026 Water Wonderland Board of Realtors®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 1,161-square-foot commercial auto shop includes office space, a restroom, and a two-bay garage equipped with a floor drain. The property is suited to service or repair operations and includes a parking lot for customer and equipment access. Commercial zoning and a well water source are also in place.
Located along M-55 in Houghton Lake, the property offers views of Houghton Lake and exposure to passing traffic. Recent improvements include a new roof, new well pump, updated electrical service, refreshed exterior finishes, and new interior paint and flooring. The 0.27-acre parcel combines the building with paved on-site parking and access for vehicles and equipment.
Located along M-55 in Houghton Lake, the property offers views of Houghton Lake and exposure to passing traffic. Recent improvements include a new roof, new well pump, updated electrical service, refreshed exterior finishes, and new interior paint and flooring. The 0.27-acre parcel combines the building with paved on-site parking and access for vehicles and equipment.
Key Highlights
- 1,161‑square‑foot commercial building on a 0.27‑acre parcel
- Two‑bay garage with floor drain, office space, and restroom
- Located on M‑55 in Houghton Lake with Houghton Lake views
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
$8,407
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
4.31%
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%
$168,140
$168.1K
Cap Rate 7%
$120,100
$120.1K
Cap Rate 9%
$93,411
$93.4K
Market Conditions
NOI Build-Up for 1,161 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
$13.9K $12.00/SF
− Vacancy
−$1.9K −$1.66/SF
EGI
$12.0K $10.34/SF
− OpEx
−$3.6K −$3.10/SF
NOI
$8.4K $7.24/SF
Area
Roscommon County, MI
Vacancy
13.80%
Lease Rate
$12.00 /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%
$168,140
Cap Rate 7%
$120,100
Cap Rate 9%
$93,411
Alternative Uses
Best Use
Retail
$120.1K
$105.1K – $140.1K
NOI $8,407 @ 7.0% cap · market cap 4.31%
Second Best
Industrial
$93.9K
$82.2K – $109.6K
NOI $6,576 @ 7.0% cap · market cap 3.37%
Theoretical Best
Office A
$191.1K
$167.2K – $222.9K
NOI $13,375 @ 7.0% cap · market cap 6.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Service bays
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
103
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48629, MI
7,420
Population
7,248
Households
1
Avg Household Size
56
Median Age
18%
College-Educated
90%
High-School Grad
77.5 sq mi
ZIP Area
96
Density / Sq Mi
$54,622
Median Household Income
$33,544
Median Earnings
$784
Median Rent
$142,300
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Jimmy's Collision Repair Center — 6771 W Houghton Lake Dr, Houghton Lake, MI 48629
- muffler man auto service center — 5861 W Houghton Lake Dr, Houghton Lake, MI 48629
Frequently Asked Questions
What type of property is this?
Auto shop - Commercial service property with office space, customer parking, and direct access from busy M-55.
Where is this auto shop located?
The property is located at 5861 W Houghton Lake Drive Houghton Lake, MI.
What is the asking price?
The asking price for this property is $195,000.
What are key features of this property?
This property features: 1,161‑square‑foot commercial building on a 0.27‑acre parcel; Two‑bay garage with floor drain, office space, and restroom; Located on M‑55 in Houghton Lake with Houghton Lake views
