Income Producing Duplex with In-Unit
For Sale
$439,900
1422 Stratton Place Drive, Chattanooga, TN 37421
MULTI_FAMILY - Chattanooga, TN
Property Size2,700 SF
Lot Size0.34 Acres
Price / SF$162.93
Days on Market106
Property Features for 1422 Stratton Place Drive
General Information
Property type
Residential Multi Family
Property subtype
Other
Bedrooms
5
Bathrooms
6
Full bathrooms
5
Rooms
Dining Room, Bedroom 3, Bathroom 2, Bathroom 4, Bedroom 4, Bathroom 1, Bedroom 1, Bathroom 6, Bathroom 5, Basement, Bedroom 5, Bathroom 3, Bedroom 2
Parking features
Off Street, Driveway
Window features
Blinds, Window Treatments
Patio and Porch features
Patio, Deck, Porch
Interior features
Breakfast Room, Ceiling Fan(s), Eat-in Kitchen, En Suite, High Speed Internet, Open Floorplan, Plumbed, Separate Dining Room, Storage, Tub/shower Combo
Exterior features
Private Yard, Storage
Basement
Crawl Space
Subdivision
Stratton Place
Lot features
Back Yard, Front Yard, Level
Elementary school
East Brainerd Elementary
Middle school
East Hamilton
High school
East Hamilton
Directions
E Brainerd Rd, then turn right onto Stratton Pl Dr. The property will be on the left-hand side. 1422 Stratton Place Drive. Latitude : 35.01147, Longitude : -85.160053
Standard status
Active
APN
158l H 015
Size
2,700 SF
Lot size
0.34 Acres
Taxes and HOA fees
Tax Description
LT 5 STRATTON PLACE REV 33-344
Tax Annual Amount
4962
Legal Description
LT 5 STRATTON PLACE REV 33-344
Utilities
Sewer type
Public Sewer
Heating system
Central, Electric (Heating), Heat Pump (Heating)
Cooling system
Central Air, Ceiling Fan(s), Electric, Multi Units
Water source
Public
Building Details
Year built
1980
Floors in Building
2
Number of units
2
Flooring type
Carpet, Vinyl
Building materials
Block, Brick, Stone
Roof type
Shingle, Asphalt
Additional Structures
Storage
Listing Agency:
Real Estate Partners Chattanooga LLC
(423) 265-0088
Listed By:
Brian Erwin · License #334506
(423) 718-7667
Added: Apr 29
Changed: Aug 1
Last Checked: Aug 12 at 3:06AM
MLS# 1533558
Copyright © 2026 Greater Chattanooga Association of REALTORS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This income producing duplex at 1422 Stratton Place Drive offers two separate residences with functional tenant-friendly layouts. The property is situated on a 0.34-acre lot with approximately 2,700 square feet and was built in 1980. Unit A features three upstairs bedrooms and two full bathrooms, along with in-unit laundry and a main level half bathroom. Unit B features two upstairs bedrooms and one full hall bath, also with in-unit laundry.
The exterior includes a covered front porch, a private yard, patio and deck areas, and private rear access to decks. There are also outdoor storage rooms for added convenience, plus off-street parking via a driveway.
Additional improvements include updated flooring and paint, and a renovation completed in 2025 with documentation. The roof and HVAC systems (x2) are estimated to have been replaced in 2020-2021. The duplex has public water and public sewer service and is heated and cooled via central systems, including heat pump heating and central air conditioning.
The exterior includes a covered front porch, a private yard, patio and deck areas, and private rear access to decks. There are also outdoor storage rooms for added convenience, plus off-street parking via a driveway.
Additional improvements include updated flooring and paint, and a renovation completed in 2025 with documentation. The roof and HVAC systems (x2) are estimated to have been replaced in 2020-2021. The duplex has public water and public sewer service and is heated and cooled via central systems, including heat pump heating and central air conditioning.
Key Highlights
- Both units are leased
- Unit A: three upstairs bedrooms and two full bathrooms plus in‑unit laundry
- Unit B: two upstairs bedrooms and one full hall bath plus in‑unit laundry
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
$26,507
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
6.03%
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%
$530,140
$530.1K
Cap Rate 7%
$378,671
$378.7K
Cap Rate 9%
$294,522
$294.5K
Market Conditions
NOI Build-Up for 2,700 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
$40.5K $15.00/SF
− Vacancy
−$2.6K −$0.98/SF
EGI
$37.9K $14.03/SF
− OpEx
−$11.4K −$4.21/SF
NOI
$26.5K $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%
$530,140
Cap Rate 7%
$378,671
Cap Rate 9%
$294,522
Alternative Uses
Best Use
Multifamily LT 5
$378.7K
$331.3K – $441.8K
NOI $26,507 @ 7.0% cap · market cap 6.03%
Second Best
Apartment 5plus
$339.8K
$297.3K – $396.4K
NOI $23,786 @ 7.0% cap · market cap 5.41%
Theoretical Best
Office A
$596.3K
$521.8K – $695.7K
NOI $41,742 @ 7.0% cap · market cap 9.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
700
Businesses Nearby
Explore this area
Business Placement
Demographics for 37421, TN
51,686
Population
23,978
Households
2.2
Avg Household Size
40
Median Age
38%
College-Educated
92%
High-School Grad
31.7 sq mi
ZIP Area
1,630
Density / Sq Mi
$79,958
Median Household Income
$44,452
Median Earnings
$1,313
Median Rent
$299,600
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?
Duplex - Well maintained duplex on a 0.34-acre lot with in-unit laundry, off-street parking, and both units leased.
Where is this duplex located?
The property is located at 1422 Stratton Place Drive Chattanooga, TN.
What is the asking price?
The asking price for this property is $439,900.
What are key features of this property?
This property features: Both units are leased; Unit A: three upstairs bedrooms and two full bathrooms plus in‑unit laundry; Unit B: two upstairs bedrooms and one full hall bath plus in‑unit laundry
