Two-Unit Residential Income
For Sale
$124,980
206 Ave S, Lubbock, TX 79415
Duplex with two rental homes, including a 2/1 front unit and a 1/1 back unit.
Property Size1,132 SF
Price / SF$110.41
Days on Market17
Property Features for 206 Ave S
General Information
Standard status
Active
Size
1,132 SF
Property subtype
Multi-Family
Additional Details
Gross Income
$18,156
Building Details
Year Built
1949
Buildings
2
Tenancy
Multi
Listing Agency:
Jerry J. Kitten Broker
(806) 928-5767
Listed By:
Jana Lowdermilk · License #0715831
Source:
Raftercrossrealty
Added: Jul 28
Changed: Jul 29
Last Checked: Aug 12 at 9:49AM
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 Jerry J. Kitten Broker
Investment Insights
Based on property information with market context.
This duplex offers two separate rent-producing homes on one property. The front house is a 2-bedroom, 1-bath layout and is currently occupied by a Section 8 tenant paying $913 per month. The back house is a 1-bedroom, 1-bath layout and rents for $600 per month.
The property is located near Texas Tech University, making it suited for investors looking for existing rental income within a residential income duplex format.
With two distinct units already producing rent, the property provides a straightforward two-home structure for ownership and management under one roof.
The property is located near Texas Tech University, making it suited for investors looking for existing rental income within a residential income duplex format.
With two distinct units already producing rent, the property provides a straightforward two-home structure for ownership and management under one roof.
Key Highlights
- Duplex with two rental homes built in 1949
- Front unit is a 2 bed/1 bath with a Section 8 tenant paying $913 per month
- Back unit is a 1 bed/1 bath paying $600 per month
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
$10,224
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
8.18%
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%
$204,480
$204.5K
Cap Rate 7%
$146,057
$146.1K
Cap Rate 9%
$113,600
$113.6K
Market Conditions
NOI Build-Up for 1,132 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
$15.6K $13.80/SF
− Vacancy
−$1.0K −$0.90/SF
EGI
$14.6K $12.90/SF
− OpEx
−$4.4K −$3.87/SF
NOI
$10.2K $9.03/SF
Area
Lubbock, TX
Vacancy
6.50%
Lease Rate
$13.80 /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%
$204,480
Cap Rate 7%
$146,057
Cap Rate 9%
$113,600
Alternative Uses
Best Use
Multifamily LT 5
$146.1K
$127.8K – $170.4K
NOI $10,224 @ 7.0% cap · market cap 8.18%
Second Best
Apartment 5plus
$131.1K
$114.8K – $153.0K
NOI $9,180 @ 7.0% cap · market cap 7.35%
Theoretical Best
Office A
$285.4K
$249.7K – $333.0K
NOI $19,977 @ 7.0% cap · market cap 15.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
981
Businesses Nearby
Explore this area
Business Placement
Demographics for 79415, TX
17,499
Population
7,225
Households
2.4
Avg Household Size
30
Median Age
26%
College-Educated
77%
High-School Grad
67.8 sq mi
ZIP Area
258
Density / Sq Mi
$37,101
Median Household Income
$25,506
Median Earnings
$956
Median Rent
$94,000
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Duplex - Duplex with two rental homes, including a 2/1 front unit and a 1/1 back unit.
Where is this duplex located?
The property is located at 206 Ave S Lubbock, TX.
What is the asking price?
The asking price for this property is $124,980.
What are key features of this property?
This property features: Duplex with two rental homes built in 1949; Front unit is a 2 bed/1 bath with a Section 8 tenant paying $913 per month; Back unit is a 1 bed/1 bath paying $600 per month
