Two-Unit Residential Income
For Sale
$410,000
Pending
175 E Main, Merced, CA 95340
Two occupied units on one lot include separate gas and electric meters and one shared water/sewer/garbage bill.
Property Size2,098 SF
Days on Market67
Property Features for 175 E Main
General Information
Standard status
Pending
Size
2,098 SF
Total Parking Spaces
1
Property subtype
Investment
Occupancy
100%
Additional Details
Multifamily Units
2
Building Details
Building Size
2,098 SF
Year Built
1925
Stories
1
Units
2
Tenancy
Multi
Listing Agency:
MOKHA REAL ESTATE
(209) 635-2131
Listed By:
Jagandeep Mokha · License #02089481
(209) 635-2131
Source:
Elliman
Added: Jun 17
Changed: Aug 8
Last Checked: Jul 23 at 9:50AM
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 MOKHA REAL ESTATE
Investment Insights
Based on property information with market context.
This two-unit residential income property includes a front and rear home on a single lot. The front unit features 2 bedrooms and 1 bathroom and has been recently renovated with newer kitchen cabinets, an updated bathroom, new paint, and new carpet. The rear unit offers 3 bedrooms and 2 bathrooms and includes a single-car garage.
Both units are currently occupied. The property has separate gas and electric meters, with one shared water/sewer/garbage bill, and is identified under one APN. The location is described as convenient to downtown Merced and local amenities.
The configuration provides two independently metered utilities for the gas and electric services while sharing other utilities billed together.
Both units are currently occupied. The property has separate gas and electric meters, with one shared water/sewer/garbage bill, and is identified under one APN. The location is described as convenient to downtown Merced and local amenities.
The configuration provides two independently metered utilities for the gas and electric services while sharing other utilities billed together.
Key Highlights
- Two homes on one lot in Merced (built in 1925), with both units currently occupied
- Front unit: 2 bedrooms, 1 bathroom, recently renovated with newer kitchen cabinets, updated bathroom, new paint, and new carpet
- Rear unit: 3 bedrooms, 2 bathrooms, plus a single‑car garage
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
$27,479
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
6.70%
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%
$549,580
$549.6K
Cap Rate 7%
$392,557
$392.6K
Cap Rate 9%
$305,322
$305.3K
Market Conditions
NOI Build-Up for 2,098 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
$41.5K $19.80/SF
− Vacancy
−$2.3K −$1.09/SF
EGI
$39.3K $18.71/SF
− OpEx
−$11.8K −$5.61/SF
NOI
$27.5K $13.10/SF
Area
Merced County, CA
Vacancy
5.50%
Lease Rate
$19.80 /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%
$549,580
Cap Rate 7%
$392,557
Cap Rate 9%
$305,322
Alternative Uses
Best Use
Multifamily LT 5
$392.6K
$343.5K – $458.0K
NOI $27,479 @ 7.0% cap · market cap 6.70%
Second Best
Apartment 5plus
$364.6K
$319.0K – $425.3K
NOI $25,520 @ 7.0% cap · market cap 6.22%
Theoretical Best
Healthcare Medical
$462.9K
$405.0K – $540.0K
NOI $32,402 @ 7.0% cap · market cap 7.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
992
Businesses Nearby
Explore this area
Business Placement
Demographics for 95340, CA
38,606
Population
13,553
Households
2.8
Avg Household Size
33
Median Age
26%
College-Educated
86%
High-School Grad
52.0 sq mi
ZIP Area
742
Density / Sq Mi
$65,141
Median Household Income
$35,165
Median Earnings
$1,204
Median Rent
$383,200
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 occupied units on one lot include separate gas and electric meters and one shared water/sewer/garbage bill.
Where is this duplex located?
The property is located at 175 E Main Merced, CA.
What is the asking price?
The asking price for this property is $410,000.
What are key features of this property?
This property features: Two homes on one lot in Merced (built in 1925), with both units currently occupied; Front unit: 2 bedrooms, 1 bathroom, recently renovated with newer kitchen cabinets, updated bathroom, new paint, and new carpet; Rear unit: 3 bedrooms, 2 bathrooms, plus a single‑car garage
