Two-Unit Duplex Investment
For Sale
$149,900
1657 Southern Ave, Memphis, TN 38114
Residential income property with one occupied unit and one vacant unit near the University of Memphis.
Property Size1,078 SF
Price / SF$139.05
Days on Market138
Property Features for 1657 Southern Ave
General Information
Standard status
Active
Size
1,078 SF
Property subtype
Residential Income
Listing Agency:
CrestCore Realty MphsBrokerage
(901) 619-6170
Listed By:
Dean Harris
(901) 619-6170
Source:
Exprealty
Added: Apr 8
Changed: Aug 20
Last Checked: Aug 23 at 4:56AM
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 CrestCore Realty MphsBrokerage
Investment Insights
Based on property information with market context.
This duplex at 1657 Southern Ave includes two residential units within 1078 square feet. Unit 1657 is occupied under a lease ending 3/31/28, while Unit 1659 is currently vacant, creating a two-unit configuration with different occupancy positions.
The property is situated near the University of Memphis in Memphis, Tennessee, with access to surrounding employment and commercial areas. Both unit numbers, 1657 and 1659, are identified in the property information.
The property is situated near the University of Memphis in Memphis, Tennessee, with access to surrounding employment and commercial areas. Both unit numbers, 1657 and 1659, are identified in the property information.
Key Highlights
- Two‑unit duplex at 1657 Southern Ave, Memphis, TN
- 1078 square feet of residential property
- Unit 1657 is occupied with a lease ending 3/31/28
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
$9,091
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
6.06%
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%
$181,820
$181.8K
Cap Rate 7%
$129,871
$129.9K
Cap Rate 9%
$101,011
$101.0K
Market Conditions
NOI Build-Up for 1,078 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
$13.8K $12.84/SF
− Vacancy
−$854 −$0.79/SF
EGI
$13.0K $12.05/SF
− OpEx
−$3.9K −$3.61/SF
NOI
$9.1K $8.43/SF
Area
Memphis, TN
Vacancy
6.17%
Lease Rate
$12.84 /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%
$181,820
Cap Rate 7%
$129,871
Cap Rate 9%
$101,011
Alternative Uses
Best Use
Multifamily LT 5
$129.9K
$113.6K – $151.5K
NOI $9,091 @ 7.0% cap · market cap 6.06%
Second Best
Apartment 5plus
$115.0K
$100.6K – $134.2K
NOI $8,049 @ 7.0% cap · market cap 5.37%
Theoretical Best
Office A
$318.6K
$278.8K – $371.7K
NOI $22,302 @ 7.0% cap · market cap 14.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
263
Businesses Nearby
Explore this area
Business Placement
Demographics for 38114, TN
23,559
Population
12,252
Households
1.9
Avg Household Size
38
Median Age
14%
College-Educated
82%
High-School Grad
7.6 sq mi
ZIP Area
3,100
Density / Sq Mi
$32,080
Median Household Income
$28,570
Median Earnings
$897
Median Rent
$79,000
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 - Residential income property with one occupied unit and one vacant unit near the University of Memphis.
Where is this duplex located?
The property is located at 1657 Southern Ave Memphis, TN.
What is the asking price?
The asking price for this property is $149,900.
What are key features of this property?
This property features: Two‑unit duplex at 1657 Southern Ave, Memphis, TN; 1078 square feet of residential property; Unit 1657 is occupied with a lease ending 3/31/28
