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    Downtown Mobile Four-Plex Investment Title is generated by Realmo AI

    161 - 163 State St AL, Mobile, AL 36603

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    Picture of Multifamily properties at 161 - 163 State St AL, Mobile, AL
    For Sale
    $999,000

    4,400 SF Income-producing Short-term Rental 4-plex For Sale

    Property size:
    4,400 SF
    Price / SF:
    $227/SF
    Added:
    Feb 28, 2025
    Days on Market:
    456
    Last Refresh:
    Mar 16 at 9:06 am

    Property Features for 161 - 163 State St AL

    General Information

    Standard status
    Active
    Property type
    Multifamily properties, Live-work space, Other mixed-use properties, Residential income properties, Mixed-use properties
    Size
    4,400 SF
    Class
    B
    Elevators
    N/A

    Building Details

    Year Renovated
    1875
    Buildings
    1
    Stories
    2
    Units
    4

    We can help!

    Listing Contact
    Paul Salter

    Listing agent Paul

    Listing office

    Listing date Feb 28, 2025

    Overview

    This 4,400 square foot multi-family complex is located in Mobile, Alabama's Historic Detonti Square District. The property, encompassing two addresses within a single building, currently operates as a thriving short-term rental. It features two 2-bedroom, 2-bathroom units and two 2-bedroom, 1.5-bathroom units. Its prime location offers easy access to Dauphin Street, the convention center, the cruise terminal, and the upcoming Civic Center, capitalizing on Mobile's burgeoning tourism and entertainment sectors. The property's proximity to Mardi Gras festivities further enhances its appeal. This turnkey operation offers immediate cash flow potential, with all automated systems and accounts seamlessly transferable at closing. This is an ideal acquisition for investors or owner-operators seeking a fully operational, high-return short-term rental asset in a rapidly growing market. The property is situated in Mobile County, Alabama, with a zip code of 36603. It is located near major attractions and Dauphin Street.

    Local Financial Insights For Mixed Use

    Simulate Cap Rate and NOI

    NOI Build-Up
    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.

    Component $ $/SF
    Gross rent $103.0k $23.40
    − Vacancy −$9.3k −$2.11
    EGI $93.7k $21.29
    − OpEx −$35.1k −$7.99
    NOI $58.6k $13.31
    4,400 SF · lease $23.40/SF/yr · vacancy 9.00% · expense 37.50%

    Alternative Uses

    Best Use
    Mixed Use
    $836.6K
    $732.0K – $976.0K (±1% cap)
    NOI $58,559 @ 7.0% cap · market cap 5.86%
    Second Best
    Apartment 5plus
    $520.9K
    $455.8K – $607.7K (±1% cap)
    NOI $36,460 @ 7.0% cap · market cap 3.65%
    Theoretical Best
    Office A
    $1.12M
    $978.5K – $1.30M (±1% cap)
    NOI $78,283 @ 7.0% cap · market cap 7.84%
    Zoning and permitted uses should be independently verified with local authorities.
    Property Profile Location Intelligence

    Current Use by Public Records

    Health Insurance Quotes Insurance Agency

    Suggested Use

    Real Estate Agency Spa & Massage Center Dental Office Hair Salon Restaurant Nail Salon Building Supply Gym & Fitness Center Skin Care Clinic Daycare Center

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    Mobile
    County
    Mobile
    State
    Alabama
    Longitude
    -88.044488
    Latitude
    30.695523

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    FAQs

    What type of property is this?
    Multifamily property - 4,400 SF Income-producing Short-term Rental 4-plex For Sale
    Where is this multifamily property located?
    The property is located at 161 - 163 State St AL Mobile, AL.
    What is the asking price?
    The asking price for this property is $999,000.
    (314) 603-5686
    We can help!
    Listing Contact
    Paul Salter
    Request Owner's contact information
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
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