Duplex With Basement
New
For Sale
$229,000
1234 Highland Ave, Racine, WI 53403
Two residential units offer separate living spaces with updated details and R3 zoning.
Property Size1,948 SF
Price / SF$117.56
Days on Market6
Property Features for 1234 Highland Ave
General Information
Standard status
Active
Size
1,948 SF
Property subtype
Two Family Home
Zoning
R3
Units
Unit Mix
2 x 2BR/1BA
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$2,746
Building Details
Year Built
1900
Units
2
Listing Agency:
Realty Dreams LLC
(262) 822-5228
Listed By:
Christina Boyle · License #8374594
(262) 822-5228
Source:
Therealtycompanyllc
Added: Aug 6
Changed: Aug 11
Last Checked: Aug 10 at 10:52AM
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 Realty Dreams LLC
Investment Insights
Based on property information with market context.
Built in 1900, this duplex contains approximately 1,948 square feet of living area arranged as two residential units. Each unit includes 2 bedrooms and 1 bathroom, providing a consistent configuration across the property. The upper residence has newer flooring in both bedrooms and throughout the unit, while the lower residence has a new porch railing and newly installed screen door. Access to the basement from the lower unit adds storage space. The property is zoned R3 and is located at 1234 Highland Ave in Racine, Wisconsin.
Key Highlights
- Two‑unit duplex with approximately 1,948 square feet of living space
- Each unit includes 2 bedrooms and 1 bathroom
- Upper unit has newer flooring 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
$18,514
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
8.08%
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%
$370,280
$370.3K
Cap Rate 7%
$264,486
$264.5K
Cap Rate 9%
$205,711
$205.7K
Market Conditions
NOI Build-Up for 1,948 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
$35.1K $18.00/SF
− Vacancy
−$1.4K −$0.72/SF
EGI
$33.7K $17.28/SF
− OpEx
−$15.1K −$7.78/SF
NOI
$18.5K $9.50/SF
Area
Racine County, WI
Vacancy
4.00%
Lease Rate
$18.00 /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%
$370,280
Cap Rate 7%
$264,486
Cap Rate 9%
$205,711
Alternative Uses
Best Use
Multifamily LT 5
$303.6K
$265.6K – $354.2K
NOI $21,251 @ 7.0% cap · market cap 9.28%
Second Best
Apartment 5plus
$264.5K
$231.4K – $308.6K
NOI $18,514 @ 7.0% cap · market cap 8.08%
Theoretical Best
Office A
$468.5K
$409.9K – $546.5K
NOI $32,792 @ 7.0% cap · market cap 14.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
921
Businesses Nearby
Explore this area
Business Placement
Demographics for 53403, WI
26,269
Population
11,876
Households
2.2
Avg Household Size
38
Median Age
23%
College-Educated
88%
High-School Grad
10.2 sq mi
ZIP Area
2,575
Density / Sq Mi
$58,274
Median Household Income
$37,130
Median Earnings
$1,029
Median Rent
$159,100
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Two residential units offer separate living spaces with updated details and R3 zoning.
Where is this duplex located?
The property is located at 1234 Highland Ave Racine, WI.
What is the asking price?
The asking price for this property is $229,000.
What are key features of this property?
This property features: Two‑unit duplex with approximately 1,948 square feet of living space; Each unit includes 2 bedrooms and 1 bathroom; Upper unit has newer flooring throughout
