Building Details

Year Built 1956

Listing Agency: Keller Williams Metro South c***@kw.com Show Phone

Listed By: Cindy Hilbrich · License #116719 Show Phone

Source: Exitrealty

Added: Apr 25 Changed: Aug 16 Last Checked: Aug 15 at 4:55AM

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Investment Insights

Based on property information with market context.

This duplex offers a two-unit setup with options to live in one side while renting the other, or rent both sides. The property is positioned for residential income use.

The address is 195 Melton Street in Montevallo, AL, with public remarks indicating it is not far from I-65 and only a few minutes from the University of Montevallo. The property is also described as being down the street from restaurants and shopping.

If you are looking for a straightforward duplex configuration in Montevallo, this offering provides a simple structure for owner-occupants or investors interested in generating rental income from a two-side layout.

Key Highlights

• Duplex built in 1956 offering flexible live‑in or rental options
• Can be used as a live‑in on one side and rent the other side
• Option to rent both sides of the duplex

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

$10,078

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

7.25%

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%

$201,560 $201.6K

Cap Rate 7%

$143,971 $144.0K

Cap Rate 9%

$111,978 $112.0K

Market Conditions

NOI Build-Up for 1,280 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

$16.1K $12.60/SF

− Vacancy

−$1.7K −$1.35/SF

EGI

$14.4K $11.25/SF

− OpEx

−$4.3K −$3.37/SF

NOI

$10.1K $7.87/SF

Area

Shelby County, AL

Vacancy

10.73%

Lease Rate

$12.60 /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%

$201,560

Cap Rate 7%

$143,971

Cap Rate 9%

$111,978

Alternative Uses

Best Use

Multifamily LT 5

$144.0K

$126.0K – $168.0K (±1% cap)

NOI $10,078 @ 7.0% cap · market cap 7.25%

Second Best

Apartment 5plus

$127.4K

$111.5K – $148.6K (±1% cap)

NOI $8,917 @ 7.0% cap · market cap 6.42%

Theoretical Best

Office A

$300.4K

$262.9K – $350.5K (±1% cap)

NOI $21,031 @ 7.0% cap · market cap 15.13%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Duplexes

Suggested Use

Top Pick Plumbing Service (Bike/Boat/Book/etc) Store Storage Facility Carpet & Flooring Store HVAC Service Barber Shop

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

2

Residential units

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

191

Businesses Nearby

Explore this area Business Placement

Demographics for 35115, AL

15,260

Population

6,388

Households

2.4

Avg Household Size

34

Median Age

22%

College-Educated

82%

High-School Grad

123.4 sq mi

ZIP Area

124

Density / Sq Mi

$54,157

Median Household Income

$32,000

Median Earnings

$807

Median Rent

$165,800

Median Home Value

Market

Vacancy Rate% for Multifamily in South region

8.5% 2022

10.2% 2023

11.4% 2024

11.3% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Duplex - Duplex for sale offering flexible live-in or rental options near I-65 and the University of Montevallo.

Where is this duplex located?

The property is located at 195 Melton Street Montevallo, AL.

What is the asking price?

The asking price for this property is $139,000.

What are key features of this property?

This property features: Duplex built in 1956 offering flexible live‑in or rental options; Can be used as a live‑in on one side and rent the other side; Option to rent both sides of the duplex