33090 E Side Dr

This Beaver Island estate stands out for its expansive 270-foot private shoreline, flexible multi-structure layout, and high-end renovations, positioning it as a premium short-term rental or legacy family retreat. The property’s strong estimated ADR and occupancy rates support a compelling cash-on-cash return, making it attractive for investors seeking yield in a unique, supply-constrained market. The guest cottage and potential summer house add versatility for group bookings or multi-family stays, enhancing rental upside. However, the remote island setting introduces operational complexities and potential seasonality in demand, which should be factored into any investment decision. The most important caveat is the need to verify STR regulations and ensure reliable property management solutions are available for this location.

Beaver Island, MI is a niche, remote market known for its natural beauty and limited supply of high-end waterfront properties. The STR strategy here is supported by the property’s size, amenities, and unique setting, with high-confidence income and valuation estimates. However, the market is subject to pronounced seasonality and logistical challenges due to its island location, which may affect both rental performance and operating costs.

The property is situated in a tranquil, scenic area of Beaver Island, offering privacy and direct access to Lake Michigan’s Sand Bay. Guest appeal is driven by the waterfront setting, outdoor recreation opportunities, and the island’s reputation for unspoiled landscapes and stargazing. The residential character is low-density and vacation-oriented, but conclusions about specific neighborhood demand are lower confidence due to limited granular data for this remote location.

At a $998,000 purchase price, the property’s underwriting is anchored by a high-confidence valuation and robust STR income projections, with an estimated ADR of $721 and expected occupancy of 62%. Monthly expected income is $13,597, with cash flow of $5,204 and a projected cash-on-cash return of 31.3%, assuming a 20% down payment, 25% expense ratio, and 6.4% interest rate. These figures are sensitive to occupancy and ADR assumptions, and operational costs may be higher than mainland comparables due to the island setting. The underwriting reflects strong upside but requires diligent management and contingency planning for seasonal and logistical risks.

Asking sits within the modeled range.