Poolside Residential Income
For Sale
$350,000
1840 E MORTEN Avenue 231, Phoenix, AZ 85020
Two-bedroom condominium with balcony access, vaulted ceilings, fireplace, and views toward a landscaped courtyard and pool.
Property Size969 SF
Days on Market46
Property Features for 1840 E MORTEN Avenue 231
General Information
Standard status
Active
Size
969 SF
Property subtype
Apartment
Additional Details
Highway Access
Yes
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$1,111
Amenities
pool
courtyard
fireplace
balcony
Building Details
Building Size
969 SF
Year Built
1985
Listing Agency:
HomeSmart
Listed By:
Rob Madden · License #BR531198000
(480) 888-1234
Source:
Alexiabertsatos
Added: Aug 3
Changed: Sep 2
Last Checked: Sep 17 at 1:10AM
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 HomeSmart
Investment Insights
Based on property information with market context.
This 1985 condominium is configured with two bedrooms and includes an upstairs balcony overlooking the community pool and landscaped courtyard. Vaulted ceilings, expansive windows, and a fireplace shape the main living areas, while the oversized primary suite provides additional room within the residence. The second bedroom can accommodate guests, a home office, or another personal-use arrangement.
The property is located near the Phoenix Mountain Preserve, dining, parks, and SR-51, placing outdoor recreation, neighborhood amenities, and regional roadway access within the surrounding area. Its pool-and-courtyard setting adds a defined outdoor component to the residential income property.
The property is located near the Phoenix Mountain Preserve, dining, parks, and SR-51, placing outdoor recreation, neighborhood amenities, and regional roadway access within the surrounding area. Its pool-and-courtyard setting adds a defined outdoor component to the residential income property.
Key Highlights
- Two‑bedroom condominium with an oversized primary suite
- Upstairs balcony overlooking the pool and landscaped courtyard
- Vaulted ceilings, generous windows, and a fireplace
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
$11,302
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
3.23%
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%
$226,040
$226.0K
Cap Rate 7%
$161,457
$161.5K
Cap Rate 9%
$125,578
$125.6K
Market Conditions
NOI Build-Up for 969 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
$21.9K $22.56/SF
− Vacancy
−$1.3K −$1.35/SF
EGI
$20.5K $21.21/SF
− OpEx
−$9.2K −$9.54/SF
NOI
$11.3K $11.66/SF
Area
Phoenix, AZ
Vacancy
6.00%
Lease Rate
$22.56 /SF/Yr
Expense Ratio
45.00%
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%
$226,040
Cap Rate 7%
$161,457
Cap Rate 9%
$125,578
Alternative Uses
Best Use
Apartment 5plus
$161.5K
$141.3K – $188.4K
NOI $11,302 @ 7.0% cap · market cap 3.23%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$293.5K
$256.8K – $342.4K
NOI $20,546 @ 7.0% cap · market cap 5.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
1
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,431
Businesses Nearby
Explore this area
Business Placement
Demographics for 85020, AZ
34,534
Population
18,231
Households
1.9
Avg Household Size
43
Median Age
43%
College-Educated
90%
High-School Grad
8.8 sq mi
ZIP Area
3,924
Density / Sq Mi
$78,412
Median Household Income
$48,230
Median Earnings
$1,389
Median Rent
$400,800
Median Home Value
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Frequently Asked Questions
What type of property is this?
Residential income property - Two-bedroom condominium with balcony access, vaulted ceilings, fireplace, and views toward a landscaped courtyard and pool.
Where is this residential income property located?
The property is located at 1840 E MORTEN Avenue 231 Phoenix, AZ.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: Two‑bedroom condominium with an oversized primary suite; Upstairs balcony overlooking the pool and landscaped courtyard; Vaulted ceilings, generous windows, and a fireplace
