Duplex with New ADU
For Sale
Under Contract
$500,000
113/115 Alderson Avenue, Billings, MT 59101
MULTI_FAMILY - Billings, MT
Property Size2,949 SF
Lot Size0.16 Acres
Price / SF$169.55
Days on Market32
Property Features for 113/115 Alderson Avenue
General Information
Property type
Residential Multi Family
Property subtype
Other
Zoning description
N1 - First Neighborhood Residential
Bedrooms
6
Full bathrooms
2
Rooms
Bedroom 5, Bedroom 3, Bedroom 4, Bedroom 2, Bedroom 1, Bathroom 1, Bedroom 6, Bathroom 2
Parking
5
Subdivision
West Side Add
Elementary school
Broadwater
Middle school
Lewis and Clark
High school
Senior High
Standard status
Active Under Contract
APN
A17776
Size
2,949 SF
Lot size
0.16 Acres
Taxes and HOA fees
Tax Description
WEST SIDE ADD, S04, T01 S, R26 E, BLOCK 8, Lot 7 - 8
Tax Annual Amount
2912
Legal Description
WEST SIDE ADD, S04, T01 S, R26 E, BLOCK 8, Lot 7 - 8
Utilities
Sewer type
Public Sewer
Heating system
Natural Gas, Forced Air
Cooling system
Central Air
Water source
Public
Building Details
Year built
1916
Number of units
2
Listing Agency:
Century 21 Americana · Century 21 Real Estate
(406) 294-2121
Listed By:
Todd Harp · License #RRE-BRO-LIC-136388
(406) 591-2999
Added: Jul 12
Changed: Aug 12
Last Checked: Aug 12 at 9:06PM
MLS# 360556
Copyright © 2026 Billings Association 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 duplex at 113/115 Alderson Avenue pairs a 1916 bungalow with a new construction ADU complementing the existing character of the home. The layout includes two bathrooms and six bedrooms, offering flexible configuration for owner-occupied use, multi-generational living, or rental income.
The property is served by public water and public sewer. Heating is natural gas forced air, and cooling is provided by central air.
Set on a 0.1607-acre lot, the home totals 2,949 square feet. Its combination of an existing residence and an ADU supports multiple living or income arrangements while keeping the overall property compact and manageable.
The property is served by public water and public sewer. Heating is natural gas forced air, and cooling is provided by central air.
Set on a 0.1607-acre lot, the home totals 2,949 square feet. Its combination of an existing residence and an ADU supports multiple living or income arrangements while keeping the overall property compact and manageable.
Key Highlights
- Duplex with new construction ADU complementing a 1916 bungalow at 113/115 Alderson Avenue
- 2,949 SF total with two bathrooms and six bedrooms
- 0.1607‑acre lot
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
$26,921
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
5.38%
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%
$538,420
$538.4K
Cap Rate 7%
$384,586
$384.6K
Cap Rate 9%
$299,122
$299.1K
Market Conditions
NOI Build-Up for 2,949 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
$40.7K $13.80/SF
− Vacancy
−$2.2K −$0.76/SF
EGI
$38.5K $13.04/SF
− OpEx
−$11.5K −$3.91/SF
NOI
$26.9K $9.13/SF
Area
Billings, MT
Vacancy
5.50%
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%
$538,420
Cap Rate 7%
$384,586
Cap Rate 9%
$299,122
Alternative Uses
Best Use
Multifamily LT 5
$384.6K
$336.5K – $448.7K
NOI $26,921 @ 7.0% cap · market cap 5.38%
Second Best
Apartment 5plus
$356.6K
$312.0K – $416.0K
NOI $24,962 @ 7.0% cap · market cap 4.99%
Theoretical Best
Office A
$643.5K
$563.0K – $750.7K
NOI $45,042 @ 7.0% cap · market cap 9.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
552
Businesses Nearby
Explore this area
Business Placement
Demographics for 59101, MT
41,522
Population
18,864
Households
2.2
Avg Household Size
37
Median Age
22%
College-Educated
91%
High-School Grad
590.8 sq mi
ZIP Area
70
Density / Sq Mi
$58,165
Median Household Income
$36,258
Median Earnings
$930
Median Rent
$243,000
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Duplex includes central air and forced-air natural gas heat with public water and public sewer services.
Where is this duplex located?
The property is located at 113/115 Alderson Avenue Billings, MT.
What is the asking price?
The asking price for this property is $500,000.
What are key features of this property?
This property features: Duplex with new construction ADU complementing a 1916 bungalow at 113/115 Alderson Avenue; 2,949 SF total with two bathrooms and six bedrooms; 0.1607‑acre lot
