Updated Two-Home Duplex
For Sale
$1,495,000
Pending
17317 Lotus Way, Morgan Hill, CA 95037
Two separate residences share one lot, with private garages and laundry serving the front home.
Property Size2,666 SF
Days on Market1500
Property Features for 17317 Lotus Way
General Information
Standard status
Pending
Size
2,666 SF
Total Parking Spaces
3
Property subtype
Residential Income
Units
Unit Mix
1 x 4BR/3BA, 1 x 1BR/1BA
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$10,182
Building Details
Buildings
2
Listing Agency:
Realty World People to People
(408) 396-4446
Listed By:
Leonette Stafford · License #01788834
(408) 396-4446
Source:
Exprealty
Added: Jul 22, 2022
Changed: Aug 29
Last Checked: Aug 29 at 6:37PM
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 Realty World People to People
Investment Insights
Based on property information with market context.
This duplex includes two separate homes on one lot with a combined 2,666 square feet. The rear residence offers 4 bedrooms, 3 full baths, an oversized 2-car garage, and a backyard. The front residence includes 1 bedroom, 1 full bath, an oversized 1-car garage, and its own laundry area.
Both homes have been updated with new bathroom cabinetry, granite countertops, and multiple new appliances. The property is located at 17317 Lotus Way in Morgan Hill, California, providing a flexible two-residence configuration for residential income use or multigenerational living.
Both homes have been updated with new bathroom cabinetry, granite countertops, and multiple new appliances. The property is located at 17317 Lotus Way in Morgan Hill, California, providing a flexible two-residence configuration for residential income use or multigenerational living.
Key Highlights
- Two homes on one lot with 2,666 square feet combined
- Rear home includes 4 bedrooms, 3 full baths, and an oversized 2‑car garage
- Front home offers 1 bedroom, 1 full bath, an oversized 1‑car garage, and private 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
$59,431
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
3.98%
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%
$1,188,620
$1.2M
Cap Rate 7%
$849,014
$849.0K
Cap Rate 9%
$660,344
$660.3K
Market Conditions
NOI Build-Up for 2,666 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
$89.6K $33.60/SF
− Vacancy
−$4.7K −$1.75/SF
EGI
$84.9K $31.85/SF
− OpEx
−$25.5K −$9.55/SF
NOI
$59.4K $22.29/SF
Area
Santa Clara County, CA
Vacancy
5.22%
Lease Rate
$33.60 /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%
$1,188,620
Cap Rate 7%
$849,014
Cap Rate 9%
$660,344
Alternative Uses
Best Use
Multifamily LT 5
$849.0K
$742.9K – $990.5K
NOI $59,431 @ 7.0% cap · market cap 3.98%
Second Best
Apartment 5plus
$723.9K
$633.4K – $844.6K
NOI $50,675 @ 7.0% cap · market cap 3.39%
Theoretical Best
Office A
$1.61M
$1.41M – $1.88M
NOI $112,665 @ 7.0% cap · market cap 7.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
717
Businesses Nearby
Explore this area
Business Placement
Demographics for 95037, CA
53,126
Population
17,185
Households
3.1
Avg Household Size
41
Median Age
44%
College-Educated
90%
High-School Grad
120.1 sq mi
ZIP Area
442
Density / Sq Mi
$158,256
Median Household Income
$71,130
Median Earnings
$2,242
Median Rent
$1,152,400
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Two separate residences share one lot, with private garages and laundry serving the front home.
Where is this duplex located?
The property is located at 17317 Lotus Way Morgan Hill, CA.
What is the asking price?
The asking price for this property is $1,495,000.
What are key features of this property?
This property features: Two homes on one lot with 2,666 square feet combined; Rear home includes 4 bedrooms, 3 full baths, and an oversized 2‑car garage; Front home offers 1 bedroom, 1 full bath, an oversized 1‑car garage, and private laundry
