Updated Two-Unit
For Sale
$625,000
1204 W Mississippi Ave, Chattanooga, TN 37405
Two residential units offer porches, stainless steel appliances, laundry equipment, and off-street parking.
Property Size2,188 SF
Price / SF$285.65
Days on Market19
Property Features for 1204 W Mississippi Ave
General Information
Standard status
Active
Size
2,188 SF
Property subtype
Residential Income
Units
Unit Mix
2 x 2BR/1.5BA
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$5,548
Amenities
front porch
back porch
off-street parking
storage building
washer and dryer
Listing Agency:
Keller Williams Realty
Listed By:
Brad Fuqua · License #326598
(423) 664-1700
Source:
Exprealty
Added: Sep 7
Changed: Sep 20
Last Checked: Sep 24 at 12:00PM
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 Keller Williams Realty
Investment Insights
Based on property information with market context.
This 2188-square-foot duplex contains two residential units, each with 2 bedrooms and 1.5 baths. Both sides include stainless steel appliances, washer and dryer, new carpet, and front and rear porches. A separate storage building adds usable rear space, while off-street parking is available through the driveway and alley.
Located at 1204 W Mississippi Ave in Chattanooga, the property sits directly across from Normal Park School. Major improvements include a new roof, HVAC units, and water heaters, providing updated core building systems for the next owner. The two-unit configuration supports residential occupancy, rental use, or a combination of the two.
Located at 1204 W Mississippi Ave in Chattanooga, the property sits directly across from Normal Park School. Major improvements include a new roof, HVAC units, and water heaters, providing updated core building systems for the next owner. The two-unit configuration supports residential occupancy, rental use, or a combination of the two.
Key Highlights
- Two 2‑bedroom, 1.5‑bath residential units
- 2188 square feet of duplex space
- Directly across from Normal Park School
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
$21,481
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
3.44%
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%
$429,620
$429.6K
Cap Rate 7%
$306,871
$306.9K
Cap Rate 9%
$238,678
$238.7K
Market Conditions
NOI Build-Up for 2,188 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
$32.8K $15.00/SF
− Vacancy
−$2.1K −$0.98/SF
EGI
$30.7K $14.03/SF
− OpEx
−$9.2K −$4.21/SF
NOI
$21.5K $9.82/SF
Area
Chattanooga, TN
Vacancy
6.50%
Lease Rate
$15.00 /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%
$429,620
Cap Rate 7%
$306,871
Cap Rate 9%
$238,678
Alternative Uses
Best Use
Multifamily LT 5
$306.9K
$268.5K – $358.0K
NOI $21,481 @ 7.0% cap · market cap 3.44%
Second Best
Apartment 5plus
$275.4K
$241.0K – $321.3K
NOI $19,276 @ 7.0% cap · market cap 3.08%
Theoretical Best
Office A
$483.2K
$422.8K – $563.8K
NOI $33,826 @ 7.0% cap · market cap 5.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
242
Businesses Nearby
Explore this area
Business Placement
Demographics for 37405, TN
18,231
Population
9,959
Households
1.8
Avg Household Size
36
Median Age
53%
College-Educated
92%
High-School Grad
54.3 sq mi
ZIP Area
336
Density / Sq Mi
$77,850
Median Household Income
$51,748
Median Earnings
$1,276
Median Rent
$416,900
Median Home Value
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Duplex - Two residential units offer porches, stainless steel appliances, laundry equipment, and off-street parking.
Where is this duplex located?
The property is located at 1204 W Mississippi Ave Chattanooga, TN.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: Two 2‑bedroom, 1.5‑bath residential units; 2188 square feet of duplex space; Directly across from Normal Park School
