Three-Unit Residential Income
For Sale
$299,900
Pending
1038 WALNUT STREET, Reading, PA 19601
Triplex with three separate units and four utility meters for tenant-paid electric, heat, and hot water.
Property Size1,355 SF
Days on Market59
Property Features for 1038 WALNUT STREET
General Information
Standard status
Pending
Size
1,355 SF
Property subtype
Triplex
Additional Details
Multifamily Units
3
Building Details
Year Built
1900
Listing Agency:
Light House Realtors, LLC
(484) 273-0056
Listed By:
Jorge Diaz Jr. · License #RS328499
(610) 507-4933
Source:
Cummingsrealtors
Added: Jul 23
Changed: Sep 18
Last Checked: Sep 19 at 10:30AM
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 Light House Realtors, LLC
Investment Insights
Based on property information with market context.
This three-unit residential income property (triplex) offers a tenant-occupied 1-bedroom unit, plus two additional residential units currently vacant. The vacant 1st floor rear studio unit has been recently updated, and the vacant 2nd floor unit is a spacious 2-bedroom configuration. Heat and hot water systems vary by unit: the 1-bedroom unit uses electric heat and an electric stove, while the 2-bedroom unit provides gas boiler heat with electric hot water.
The property includes four separate utility meters, supporting straightforward billing and tenant responsibility. The tenant-occupied unit and the vacant units are described as having their own electric, hot water, and heat provisions, which may simplify day-to-day utility management.
All three units are positioned to support a multi-tenant rental structure within a single building, making it an option for both investors and owner-occupants seeking rental income from the other units.
The property includes four separate utility meters, supporting straightforward billing and tenant responsibility. The tenant-occupied unit and the vacant units are described as having their own electric, hot water, and heat provisions, which may simplify day-to-day utility management.
All three units are positioned to support a multi-tenant rental structure within a single building, making it an option for both investors and owner-occupants seeking rental income from the other units.
Key Highlights
- Triplex with three residential units
- Tenant‑occupied 1‑bedroom unit rented for $800/month; tenant pays electric heat, hot water, and electric stove
- Vacant, recently updated 1st‑floor rear studio unit with projected rent of approximately $1,100/month
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
$13,358
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
4.45%
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%
$267,160
$267.2K
Cap Rate 7%
$190,829
$190.8K
Cap Rate 9%
$148,422
$148.4K
Market Conditions
NOI Build-Up for 1,355 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 $14.64/SF
− Vacancy
−$754 −$0.56/SF
EGI
$19.1K $14.08/SF
− OpEx
−$5.7K −$4.23/SF
NOI
$13.4K $9.86/SF
Area
Berks County, PA
Vacancy
3.80%
Lease Rate
$14.64 /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%
$267,160
Cap Rate 7%
$190,829
Cap Rate 9%
$148,422
Alternative Uses
Best Use
Multifamily LT 5
$190.8K
$167.0K – $222.6K
NOI $13,358 @ 7.0% cap · market cap 4.45%
Second Best
Apartment 5plus
$166.8K
$146.0K – $194.6K
NOI $11,676 @ 7.0% cap · market cap 3.89%
Theoretical Best
Office A
$222.4K
$194.6K – $259.5K
NOI $15,571 @ 7.0% cap · market cap 5.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
3
Residential units
Location Intelligence
Trade Area within ½ mile
2,346
Businesses Nearby
Explore this area
Business Placement
Demographics for 19601, PA
35,477
Population
14,024
Households
2.5
Avg Household Size
34
Median Age
12%
College-Educated
73%
High-School Grad
3.8 sq mi
ZIP Area
9,336
Density / Sq Mi
$41,133
Median Household Income
$30,433
Median Earnings
$986
Median Rent
$110,700
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Northeast region
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Frequently Asked Questions
What type of property is this?
Triplex - Triplex with three separate units and four utility meters for tenant-paid electric, heat, and hot water.
Where is this triplex located?
The property is located at 1038 WALNUT STREET Reading, PA.
What is the asking price?
The asking price for this property is $299,900.
What are key features of this property?
This property features: Triplex with three residential units; Tenant‑occupied 1‑bedroom unit rented for $800/month; tenant pays electric heat, hot water, and electric stove; Vacant, recently updated 1st‑floor rear studio unit with projected rent of approximately $1,100/month
