10% Cap Rate Investment – 100% Occupancy
Located on Highway 59 in the heart of Summerdale, this 2.3-acre property is zoned B-2 (Commercial Business) and offers high visibility and strong traffic counts. The property includes eight cottages/tiny homes (ten rental units total) with approximately 5,900 square feet of rentable space. All units are furnished and leased on a weekly basis. Riviera provides electricity, Point Broadband provides internet, and the Town of Summerdale provides water and sewer.
Although the property is currently 100% occupied, a 10% vacancy expense has been applied in the underwriting to reflect realistic long-term performance and to calculate the stated 10% cap rate.
Financials (Annual)
Insurance: $10,800
Taxes: $3,850
Utilities: $26,000
Landscaping: $2,100
General Maintenance & Repairs: $9,048
Vacancy (Hypothetical 10%): $18,096
Property Breakdown
Building 1 (Triplex, c. 1943 / former Summerdale Post Office)
Approx. 1,543 sq. ft. total
Unit 1A: ~700 sq. ft., rents $320/week (potential $400/week with renovation)
Units 1B & 1C: ~400 sq. ft. each, rent $320/week
Cottage 2 – 3BR/1BA, ~1,042 sq. ft. | Renovated 2017 | Tenant since 2022
Cottage 3 – 1BR/1BA, ~435 sq. ft. | Renovated 2024 | Tenant in place
Cottage 4 – Studio, ~224 sq. ft. | $260/week | Tenant since 2021
Cottage 5 – 2BR/1BA, ~710 sq. ft. | Renovated 2022
Cottage 6 – 1BR/1BA, ~540 sq. ft. | Tenant since 2017
Cottage 7 – 1BR/1BA, ~480 sq. ft. | Renovated 2018 | Tenant since 2019
Cottage 8 – 2BR/1BA, ~685 sq. ft. | Renovated 2023
Laundry Facility – ~144 sq. ft., currently free to tenants. Potential for revenue if converted to coin-operated.
Investment Highlights
10% Cap Rate calculated with 10% vacancy factor
Current 100% occupancy and consistent rental performance
Highway 59 frontage with strong visibility and traffic counts
Value-add potential through rent increases and laundry conversion
All information deemed reliable but not guaranteed. Buyer or buyer’s agent to verify all details. Foundation for Cottages is Crawl space with cement piers. Exterior is Hardy board board mostly, some cedar lap siding and one that is vinyl siding. All cottages have heat & A/C with metal roofs.
Sandy Wise
Wise Living Real Estate
