Hidden Valley Apartments consist of 22 units nestled in Davisburg, a town bordering Clarkston, MI. The property consists of 22 two bedroom one bath apartments, 750 square feet each. The property is currently 100% occupied grossing over $22,000 per month in gross revenue.
There are three buildings for the 22 units on the property - all built in 1971. The property is on a private septic and sewer system - that is maintained by the current owner. This reduces the water burden cost on the tenant, as well as the landlord. The units are equipped with hot water baseboard heat, and tenants are allowed to bring an AC unit into their apartment. The units are individually metered for electric (tenant paid) and there is natural gas that is paid by the landlord. There is ample parking for the 22 units - the property sits on 3.4 acres.
Opportunity
This property presents a compelling investment opportunity with significant value-add potential. While currently stabilized, there is substantial room for rent growth through strategic renovations to both individual units and the property's exterior. The current average rent across all units is $910. This is considerably below the market average for two-bedroom units in the area, which command a minimum of $1,250. By bringing rents to market rates, we project an increase in Net Operating Income (NOI) of approximately $86,000 annually. This projected increase in NOI is anticipated to enhance the property's value by an estimated $1,220,000, based on the initial capitalization rate.
A key advantage of this apartment building is its relative affordability compared to homeownership in Davisburg. The average home value in Davisburg is approximately $456,000, which typically translates to a monthly mortgage payment exceeding $3,500, in addition to an estimated down payment of $45,000 plus closing costs. This apartment offering provides tenants with a cost-effective alternative to homeownership while still allowing them to experience the desirable rural lifestyle that Davisburg offers. This makes the property an attractive option for a broad tenant base.
Davisburg
Davisburg, Michigan, a quaint and charming community, benefits greatly from its close proximity to the vibrant village of Clarkston. Just a short drive away, Clarkston offers Davisburg residents access to an array of highly-regarded restaurants, unique boutiques, and a lively downtown area known for its historic architecture and community events. Clarkston's excellent school district, beautiful parks, and strong sense of community further enhance its appeal, making it a truly desirable neighbor for Davisburg.
Davisburg, Michigan (48350 zip code) boasts a significantly high median household income of over $108,000, and an average income exceeding $125,000. These figures are well above state and national averages, largely due to its prime location in affluent Oakland County, offering access to high-paying jobs in diverse industries and a highly desirable quality of life.
This area benefits from access to top-tier school districts, including the highly-regarded Clarkston Community School District which serves much of the area and consistently ranks among the best in Michigan, further contributing to the region's desirability and attracting families seeking excellent educational opportunities.
Renting vs Owning
The average sale price in Davisburg, in May of 2025 was over $454,000. This computes to a monthly mortgage amount of over $3,500 per month, including taxes and insurance. In contrast, a rent of $1,250 (which is close to the average for a 1-bedroom apartment and sometimes even available for 2-bedrooms in Davisburg or nearby areas like Clarkston) represents a much lower monthly expenditure. This affordability allows individuals to enjoy the benefits of living in or near Davisburg – its natural beauty, access to good schools, and proximity to the amenities of Clarkston – without the significant long-term financial burden and responsibilities of homeownership.
