Residential Income Property with Water
New
For Sale
$385,000
1144 LAKE HERON DRIVE Unit 2B, Annapolis, MD 21403
Updated condominium with a modern kitchen, private outdoor space, fireplace, and access to a community pool.
Property Size1,103 SF
Days on Market4
Property Features for 1144 LAKE HERON DRIVE Unit 2B
General Information
Standard status
Active
Size
1,103 SF
Property subtype
Unit/Flat/Apartment
Units
Unit Mix
1 x 2BR/2BA
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$4,485
Amenities
fireplace
private deck
community pool
Building Details
Building Size
1,103 SF
Year Built
1987
Listing Agency:
Fathom Realty MD, LLC
(240) 416-1395
Listed By:
stacey canas · License #678716
(240) 416-1395
Source:
Bradkappel
Added: Aug 18
Changed: Aug 21
Last Checked: Aug 21 at 4:43AM
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 Fathom Realty MD, LLC
Investment Insights
Based on property information with market context.
This residential income property is a 2-bedroom, 2-bathroom condominium built in 1987. Interior improvements include soft-close kitchen cabinets, quartz countertops, new flooring, and fresh paint throughout. A fireplace adds a defined gathering area, while the private deck extends from the bedroom and overlooks the water.
The condominium sits next to the community pool and is positioned near shopping, dining, and everyday conveniences. The combination of updated finishes, private outdoor space, water views, and on-site recreation creates a practical residential offering.
The condominium sits next to the community pool and is positioned near shopping, dining, and everyday conveniences. The combination of updated finishes, private outdoor space, water views, and on-site recreation creates a practical residential offering.
Key Highlights
- 2‑bedroom, 2‑bathroom condominium built in 1987
- Updated kitchen with soft‑close cabinets and quartz countertops
- New flooring and fresh paint throughout
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
$14,886
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
3.87%
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%
$297,720
$297.7K
Cap Rate 7%
$212,657
$212.7K
Cap Rate 9%
$165,400
$165.4K
Market Conditions
NOI Build-Up for 1,103 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
$28.9K $26.16/SF
− Vacancy
−$1.8K −$1.62/SF
EGI
$27.1K $24.54/SF
− OpEx
−$12.2K −$11.04/SF
NOI
$14.9K $13.50/SF
Area
Anne Arundel County, MD
Vacancy
6.20%
Lease Rate
$26.16 /SF/Yr
Expense Ratio
45.00%
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%
$297,720
Cap Rate 7%
$212,657
Cap Rate 9%
$165,400
Alternative Uses
Best Use
Apartment 5plus
$212.7K
$186.1K – $248.1K
NOI $14,886 @ 7.0% cap · market cap 3.87%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$322.7K
$282.3K – $376.4K
NOI $22,586 @ 7.0% cap · market cap 5.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
273
Businesses Nearby
Explore this area
Business Placement
Demographics for 21403, MD
31,521
Population
15,479
Households
2
Avg Household Size
42
Median Age
58%
College-Educated
91%
High-School Grad
9.3 sq mi
ZIP Area
3,389
Density / Sq Mi
$115,068
Median Household Income
$64,638
Median Earnings
$1,872
Median Rent
$566,900
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Updated condominium with a modern kitchen, private outdoor space, fireplace, and access to a community pool.
Where is this residential income property located?
The property is located at 1144 LAKE HERON DRIVE Unit 2B Annapolis, MD.
What is the asking price?
The asking price for this property is $385,000.
What are key features of this property?
This property features: 2‑bedroom, 2‑bathroom condominium built in 1987; Updated kitchen with soft‑close cabinets and quartz countertops; New flooring and fresh paint throughout
