Two-Unit Duplex Investment
For Sale
$230,000
1419 E 40th St Des, Des Moines, IA 50317
Two matching residences offer separate utilities and a practical two-level floor plan for residential income use.
Property Size1,996 SF
Days on Market195
Property Features for 1419 E 40th St Des
General Information
Standard status
Active
Size
1,996 SF
Property subtype
MultiFamily Apartments
Property Condition
Severity
Repairs Needed
Evidence
needs a little work
Units
Unit Mix
2 x 3BR/1BA
Multifamily Units
2
Additional Details
Asking Price
$230,000
Highway Access
Yes
Building Details
Building Size
1,996 SF
Year Built
1983
Buildings
1
Listing Agency:
Better Commercial - Remax Concepts
(319) 231-1160
Listed By:
Chase Keller · License #S63136000
(319) 231-1160
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 30
Last Checked: Aug 30 at 2:17PM
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 Better Commercial - Remax Concepts
Investment Insights
Based on property information with market context.
Built in 1983, this duplex at 1419 E 40th St in Des Moines contains two 3-bedroom, 1-bath residences. Each unit places the living room and kitchen on the main level, with all bedrooms and the bathroom upstairs. Utilities are separately metered, and residents handle lawn and snow care. One residence is vacant, while the other is occupied on a month-to-month arrangement. The property requires some work, with renovation details described as limited in scope.
The property is on Des Moines’ east side near Gray’s Woods and Copper Creek Golf Club, just off University Ave. Interstate 235 and Hwy 65 are each approximately 6 minutes away, and downtown Des Moines is less than 10 minutes from the property. The stated pro forma cap rate is 8.5%.
The property is on Des Moines’ east side near Gray’s Woods and Copper Creek Golf Club, just off University Ave. Interstate 235 and Hwy 65 are each approximately 6 minutes away, and downtown Des Moines is less than 10 minutes from the property. The stated pro forma cap rate is 8.5%.
Key Highlights
- Two 3‑bedroom, 1‑bath units
- Built in 1983
- All utilities separated
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
$18,622
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
8.10%
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%
$372,440
$372.4K
Cap Rate 7%
$266,029
$266.0K
Cap Rate 9%
$206,911
$206.9K
Market Conditions
NOI Build-Up for 1,996 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
$27.5K $13.80/SF
− Vacancy
−$942 −$0.47/SF
EGI
$26.6K $13.33/SF
− OpEx
−$8.0K −$4.00/SF
NOI
$18.6K $9.33/SF
Area
Des Moines, IA
Vacancy
3.42%
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%
$372,440
Cap Rate 7%
$266,029
Cap Rate 9%
$206,911
Alternative Uses
Best Use
Multifamily LT 5
$266.0K
$232.8K – $310.4K
NOI $18,622 @ 7.0% cap · market cap 8.10%
Second Best
Apartment 5plus
$237.7K
$208.0K – $277.3K
NOI $16,636 @ 7.0% cap · market cap 7.23%
Theoretical Best
Office A
$491.6K
$430.1K – $573.5K
NOI $34,410 @ 7.0% cap · market cap 14.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
79
Businesses Nearby
Explore this area
Business Placement
Demographics for 50317, IA
37,221
Population
15,193
Households
2.4
Avg Household Size
38
Median Age
15%
College-Educated
87%
High-School Grad
22.1 sq mi
ZIP Area
1,684
Density / Sq Mi
$61,569
Median Household Income
$36,641
Median Earnings
$1,079
Median Rent
$165,200
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 matching residences offer separate utilities and a practical two-level floor plan for residential income use.
Where is this duplex located?
The property is located at 1419 E 40th St Des Des Moines, IA.
What is the asking price?
The asking price for this property is $230,000.
What are key features of this property?
This property features: Two 3‑bedroom, 1‑bath units; Built in 1983; All utilities separated
