Three-Family Residential Income
For Sale
$899,999
Pending
1-3 Howard St, Salem, MA 01970
Up/down three-family residence offered for sale, needing some TLC, with period charm and rental income potential.
Property Size2,597 SF
Days on Market52
Property Features for 1-3 Howard St
General Information
Standard status
Pending
Size
2,597 SF
Property subtype
Residential Income
Zoning
R3
Additional Details
Multifamily Units
3
Taxes and HOA fees
Annual Taxes
$8,283
Building Details
Building Size
2,597 SF
Year Built
1894
Stories
3
Units
3
Listing Agency:
Austin Realty Group
(781) 272-5001
Listed By:
Brenda Rappaport
(781) 640-3668
Source:
Startpoint
Added: Jul 16
Changed: Aug 23
Last Checked: Aug 1 at 8:34AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Austin Realty Group
Investment Insights
Based on property information with market context.
This up/down three-family home offers a period-charm residential layout and presents an investor- or owner-occupant-friendly opportunity. The property is being offered in need of some TLC to reach its full potential.
The home is located in the center of Salem’s activities, steps from historic downtown and the Essex Street Pedestrian Mall, with nearby museums, shops, restaurants, and walkable access to many local amenities. WalkScore is 92 (Walker’s Paradise), and bikeScore is 64 (Bikeable), with a transitScore of 38 (Some Transit).
As a residential income property, the building is configured as a three-family with an up/down arrangement designed to support rental income across the units.
The home is located in the center of Salem’s activities, steps from historic downtown and the Essex Street Pedestrian Mall, with nearby museums, shops, restaurants, and walkable access to many local amenities. WalkScore is 92 (Walker’s Paradise), and bikeScore is 64 (Bikeable), with a transitScore of 38 (Some Transit).
As a residential income property, the building is configured as a three-family with an up/down arrangement designed to support rental income across the units.
Key Highlights
- Up/down 3‑family home built in 1894, with period charm
- Steps to historic downtown and the Essex Street Pedestrian Mall
- WalkScore 92 (Walker’s Paradise) for everyday walkability
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
$43,750
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
4.86%
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%
$875,000
$875.0K
Cap Rate 7%
$625,000
$625.0K
Cap Rate 9%
$486,111
$486.1K
Market Conditions
NOI Build-Up for 2,597 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
$65.4K $25.20/SF
− Vacancy
−$2.9K −$1.13/SF
EGI
$62.5K $24.07/SF
− OpEx
−$18.7K −$7.22/SF
NOI
$43.7K $16.85/SF
Area
Essex County, MA
Vacancy
4.50%
Lease Rate
$25.20 /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%
$875,000
Cap Rate 7%
$625,000
Cap Rate 9%
$486,111
Alternative Uses
Best Use
Multifamily LT 5
$625.0K
$546.9K – $729.2K
NOI $43,750 @ 7.0% cap · market cap 4.86%
Second Best
Apartment 5plus
$564.2K
$493.6K – $658.2K
NOI $39,491 @ 7.0% cap · market cap 4.39%
Theoretical Best
Office A
$1.54M
$1.35M – $1.79M
NOI $107,619 @ 7.0% cap · market cap 11.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Location Intelligence
Trade Area within ½ mile
2,539
Businesses Nearby
Explore this area
Business Placement
Demographics for 01970, MA
44,451
Population
20,920
Households
2.1
Avg Household Size
39
Median Age
50%
College-Educated
92%
High-School Grad
8.2 sq mi
ZIP Area
5,421
Density / Sq Mi
$85,189
Median Household Income
$52,024
Median Earnings
$1,800
Median Rent
$497,500
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Triplex - Up/down three-family residence offered for sale, needing some TLC, with period charm and rental income potential.
Where is this triplex located?
The property is located at 1-3 Howard St Salem, MA.
What is the asking price?
The asking price for this property is $899,999.
What are key features of this property?
This property features: Up/down 3‑family home built in 1894, with period charm; Steps to historic downtown and the Essex Street Pedestrian Mall; WalkScore 92 (Walker’s Paradise) for everyday walkability
