Multifamily Investment Opportunity in
For Sale
$420,000
Pending
402 E MAIN St, Dundee, FL 33838
Fully occupied five-unit apartment building with income potential.
Property Size3,352 SF
Days on Market112
Property Features for 402 E MAIN St
General Information
Standard status
Pending
Size
3,352 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$5,889
Building Details
Building Size
3,352 SF
Year Built
1946
Units
5
Listing Agency:
Real Estate Brokers USA, Inc
(863) 242-6624
Listed By:
Debbie Bradbury · License #3231911
(863) 242-6624
Source:
Elliman
Added: Apr 24
Changed: Aug 8
Last Checked: Aug 5 at 10:35AM
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 Real Estate Brokers USA, Inc
Investment Insights
Based on property information with market context.
This two-story apartment building presents a multifamily investment opportunity. Located on an oversized corner lot, the property offers excellent visibility. The building comprises five units, each equipped with its own electric meter. Each unit features a one-bedroom, one-bath layout, complemented by a bonus room suitable for use as a second bedroom, along with a kitchen and living area. Window A/C units are installed in each apartment. Tenants are responsible for their electric bills, while rent includes water and trash services. The property utilizes city water and a septic system that is approximately 10 years old. The current gross annual income is $51,000. There is a storage area that could be converted into a shared laundry facility. The property is located close to Downtown Dundee. The bike score is 33, indicating it is somewhat bikeable, and the walk score is 1, indicating car-dependent accessibility. The property offers potential for increased returns through renovations and rent adjustments.
Key Highlights
- Fully occupied, generating $51,000 gross annual income with potential for increased returns.
- Five units, each with one bedroom, one bath, and a bonus room (potential second bedroom).
- Each unit has its own electric meter, simplifying utility management.
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
$31,750
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
7.56%
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%
$635,000
$635.0K
Cap Rate 7%
$453,571
$453.6K
Cap Rate 9%
$352,778
$352.8K
Market Conditions
NOI Build-Up for 3,352 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
$61.5K $18.36/SF
− Vacancy
−$3.8K −$1.14/SF
EGI
$57.7K $17.22/SF
− OpEx
−$26.0K −$7.75/SF
NOI
$31.7K $9.47/SF
Area
Polk County, FL
Vacancy
6.20%
Lease Rate
$18.36 /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%
$635,000
Cap Rate 7%
$453,571
Cap Rate 9%
$352,778
Alternative Uses
Best Use
Apartment 5plus
$453.6K
$396.9K – $529.2K
NOI $31,750 @ 7.0% cap · market cap 7.56%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$805.5K
$704.8K – $939.8K
NOI $56,386 @ 7.0% cap · market cap 13.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
217
Businesses Nearby
Explore this area
Business Placement
Demographics for 33838, FL
5,243
Population
2,162
Households
2.4
Avg Household Size
38
Median Age
9%
College-Educated
80%
High-School Grad
7.3 sq mi
ZIP Area
718
Density / Sq Mi
$44,514
Median Household Income
$28,286
Median Earnings
$1,600
Median Rent
$230,100
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Fully occupied five-unit apartment building with income potential.
Where is this apartment building located?
The property is located at 402 E MAIN St Dundee, FL.
What is the asking price?
The asking price for this property is $420,000.
What are key features of this property?
This property features: Fully occupied, generating $51,000 gross annual income with potential for increased returns.; Five units, each with one bedroom, one bath, and a bonus room (potential second bedroom).; Each unit has its own electric meter, simplifying utility management.
