Licensed Quadplex Rental
For Sale
$368,000
906 E Michigan Ave, East Lansing, MI 48823
Class IV rental license licensed for four units with tenants in place through August 12, 2027.
Property Size2,160 SF
Price / SF$170.37
Days on Market123
Property Features for 906 E Michigan Ave
General Information
Standard status
Active
Size
2,160 SF
Property subtype
Investment, Multifamily
Zoning
Residential
Occupancy
100%
Building Details
Building Size
2,160 SF
Year Built
1922
Stories
2
Listing Agency:
BHHS - Michigan Real Estate | Grand Rapids - Cascade
Listed By:
Kelly Miller · License #6501321932
(517) 712-5496
Source:
Cpix.resimplifi
Added: May 8
Changed: Sep 3
Last Checked: Sep 7 at 4:48AM
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 BHHS - Michigan Real Estate | Grand Rapids - Cascade
Investment Insights
Based on property information with market context.
This for-sale quadplex is offered with a City of East Lansing Class IV rental license that is licensed for four. The property is currently rented, with a new lease term beginning August 20, 2026 through August 12, 2027. The seller notes 100% occupancy through August 12, 2027.
The tenant agreement includes tenant responsibility for utilities, snow removal, and leaf removal. Tenants also pay a $200 carpet fee at the beginning of the lease and a $300 cleaning fee at the beginning of the lease. Washer/dryer rental is $20 per month. The owner is responsible for lawn care, as well as taxes and insurance.
Showings are by appointment only. The seller is related to the Realtor.
The tenant agreement includes tenant responsibility for utilities, snow removal, and leaf removal. Tenants also pay a $200 carpet fee at the beginning of the lease and a $300 cleaning fee at the beginning of the lease. Washer/dryer rental is $20 per month. The owner is responsible for lawn care, as well as taxes and insurance.
Showings are by appointment only. The seller is related to the Realtor.
Key Highlights
- Class IV rental license in the City of East Lansing, licensed for four units
- 100% leased through August 12, 2027
- New lease term begins August 20, 2026 and runs through August 12, 2027
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
$19,578
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
5.32%
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%
$391,560
$391.6K
Cap Rate 7%
$279,686
$279.7K
Cap Rate 9%
$217,533
$217.5K
Market Conditions
NOI Build-Up for 2,160 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
$29.8K $13.80/SF
− Vacancy
−$1.8K −$0.85/SF
EGI
$28.0K $12.95/SF
− OpEx
−$8.4K −$3.88/SF
NOI
$19.6K $9.06/SF
Area
Ingham County, MI
Vacancy
6.17%
Lease Rate
$13.80 /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%
$391,560
Cap Rate 7%
$279,686
Cap Rate 9%
$217,533
Alternative Uses
Best Use
Multifamily LT 5
$279.7K
$244.7K – $326.3K
NOI $19,578 @ 7.0% cap · market cap 5.32%
Second Best
Apartment 5plus
$251.4K
$219.9K – $293.3K
NOI $17,595 @ 7.0% cap · market cap 4.78%
Theoretical Best
Office A
$347.0K
$303.7K – $404.9K
NOI $24,292 @ 7.0% cap · market cap 6.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
750
Businesses Nearby
Explore this area
Business Placement
Demographics for 48823, MI
51,793
Population
23,757
Households
2.2
Avg Household Size
28
Median Age
64%
College-Educated
98%
High-School Grad
23.6 sq mi
ZIP Area
2,195
Density / Sq Mi
$50,837
Median Household Income
$19,837
Median Earnings
$1,127
Median Rent
$261,100
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Quadplex - Class IV rental license licensed for four units with tenants in place through August 12, 2027.
Where is this quadplex located?
The property is located at 906 E Michigan Ave East Lansing, MI.
What is the asking price?
The asking price for this property is $368,000.
What are key features of this property?
This property features: Class IV rental license in the City of East Lansing, licensed for four units; 100% leased through August 12, 2027; New lease term begins August 20, 2026 and runs through August 12, 2027
