3-Unit Mixed-Use
For Sale
$165,000
402 Richmond Street, Ottumwa, IA 52501
Residential Income, Ottumwa, IA
Property Size2,200 SF
Price / SF$75
Days on Market43
Property Features for 402 Richmond Street
General Information
Property type
Residential Multi Family
Property subtype
Triplex
Basement
Full
Directions
west on Richmond
Standard status
Active
APN
007416930032000
Size
2,200 SF
Taxes and HOA fees
Tax Year
2025
Tax Description
RICHMOND ADD-LOT 27 EX SW PT; LOT 28 EX NE66'OF NW50'& EX SECR &EX PT SOLD BLK B(402 RICHMOND)
Tax Annual Amount
2244
Legal Description
RICHMOND ADD-LOT 27 EX SW PT; LOT 28 EX NE66'OF NW50'& EX SECR &EX PT SOLD BLK B(402 RICHMOND)
Utilities
Heating system
Forced Air
Water source
Public
Building Details
Year built
1910
Floors in Building
2
Number of units
3
Building materials
Shakes
Listing Agency:
Lynch Realty Inc
(641) 664-2275
Listed By:
Lincoln Lynch · License #S60347000
(641) 208-3649
Added: Aug 7
Changed: Sep 7
Last Checked: Sep 18 at 3:06AM
MLS# 6341362
Copyright © 2026 NoCoast MLS. 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 2,200-square-foot, three-unit property combines residential and commercial components within a building constructed in 1910. The upper level contains a two-bedroom apartment that is currently occupied. The main level includes a studio apartment requiring updates, along with commercial space configured with two office areas and a kitchenette.
Utilities are separately metered, and the owner retains use of the garage space. The building has shake exterior materials, forced-air heating, and a public water connection. Located in Ottumwa, Iowa, the property offers a mixed-use configuration with both apartment and office components.
Utilities are separately metered, and the owner retains use of the garage space. The building has shake exterior materials, forced-air heating, and a public water connection. Located in Ottumwa, Iowa, the property offers a mixed-use configuration with both apartment and office components.
Key Highlights
- Three‑unit building totaling 2,200 square feet
- Upper‑level 2 bedroom apartment currently occupied
- Main‑level studio apartment ready for updates
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
$12,613
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
7.64%
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%
$252,260
$252.3K
Cap Rate 7%
$180,186
$180.2K
Cap Rate 9%
$140,144
$140.1K
Market Conditions
NOI Build-Up for 2,200 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
$19.8K $9.00/SF
− Vacancy
−$1.8K −$0.81/SF
EGI
$18.0K $8.19/SF
− OpEx
−$5.4K −$2.46/SF
NOI
$12.6K $5.73/SF
Area
Wapello County, IA
Vacancy
9.00%
Lease Rate
$9.00 /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%
$252,260
Cap Rate 7%
$180,186
Cap Rate 9%
$140,144
Alternative Uses
Best Use
Mixed Use
$311.1K
$272.3K – $363.0K
NOI $21,780 @ 7.0% cap · market cap 13.20%
Second Best
Multifamily LT 5
$180.2K
$157.7K – $210.2K
NOI $12,613 @ 7.0% cap · market cap 7.64%
Theoretical Best
Office A
$481.2K
$421.1K – $561.4K
NOI $33,686 @ 7.0% cap · market cap 20.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
333
Businesses Nearby
Explore this area
Business Placement
Demographics for 52501, IA
30,313
Population
13,654
Households
2.2
Avg Household Size
38
Median Age
20%
College-Educated
87%
High-School Grad
225.3 sq mi
ZIP Area
135
Density / Sq Mi
$59,091
Median Household Income
$40,173
Median Earnings
$955
Median Rent
$109,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Midwest region
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Frequently Asked Questions
What type of property is this?
Triplex - Three-unit building combines residential apartments with office and kitchenette space in a flexible commercial layout.
Where is this triplex located?
The property is located at 402 Richmond Street Ottumwa, IA.
What is the asking price?
The asking price for this property is $165,000.
What are key features of this property?
This property features: Three‑unit building totaling 2,200 square feet; Upper‑level 2 bedroom apartment currently occupied; Main‑level studio apartment ready for updates
