Upstairs Residential Income
For Sale
$280,000
2035 S Elm St #247, Tempe, AZ 85282
Two-bedroom unit offers vaulted ceilings, an updated kitchen, balcony, and access to a community pool.
Property Size1,004 SF
Price / SF$278.88
Days on Market8
Property Features for 2035 S Elm St #247
General Information
Standard status
Active
Size
1,004 SF
Property subtype
Multi-Family
Units
Unit Mix
1 x 2BR/2BA
Multifamily Units
1
Additional Details
Public Transit
Yes
Amenities
pool
covered assigned parking
private balcony
enclosed storage
Building Details
Year Built
1983
Listing Agency:
1St Dream Realty
(602) 353-7034
Listed By:
House of AZ
(602) 353-7034
Source:
Houseofarizona
Added: Aug 23
Changed: Aug 29
Last Checked: Aug 26 at 12:41PM
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 1St Dream Realty
Investment Insights
Based on property information with market context.
This 1,004-square-foot, upstairs condominium includes 2 bedrooms and 2 bathrooms within an open floor plan. Interior features include vaulted ceilings, an updated kitchen with solid stone countertops, light cabinetry, a breakfast bar, newer appliances, and a newer patio door. The private balcony overlooks mature trees and provides open views, while enclosed storage adds practical utility.
The community offers a pool and covered assigned parking. The property is located in Tempe near ASU, Tempe Marketplace, shopping, dining, entertainment, and Light Rail. Sky Harbor Airport is approximately 7 miles away. Built in 1983, the unit combines a defined residential layout with access to community amenities and nearby transportation.
The community offers a pool and covered assigned parking. The property is located in Tempe near ASU, Tempe Marketplace, shopping, dining, entertainment, and Light Rail. Sky Harbor Airport is approximately 7 miles away. Built in 1983, the unit combines a defined residential layout with access to community amenities and nearby transportation.
Key Highlights
- 2‑bedroom, 2‑bath upstairs condominium with 1,004 square feet
- Updated kitchen with solid stone countertops, light cabinetry, breakfast bar, and newer appliances
- Private balcony with open views of mature trees and sunsets
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
$13,608
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
4.86%
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%
$272,160
$272.2K
Cap Rate 7%
$194,400
$194.4K
Cap Rate 9%
$151,200
$151.2K
Market Conditions
NOI Build-Up for 1,004 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
$26.3K $26.16/SF
− Vacancy
−$1.5K −$1.52/SF
EGI
$24.7K $24.64/SF
− OpEx
−$11.1K −$11.09/SF
NOI
$13.6K $13.55/SF
Area
Tempe, AZ
Vacancy
5.80%
Lease Rate
$26.16 /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%
$272,160
Cap Rate 7%
$194,400
Cap Rate 9%
$151,200
Alternative Uses
Best Use
Apartment 5plus
$194.4K
$170.1K – $226.8K
NOI $13,608 @ 7.0% cap · market cap 4.86%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$315.7K
$276.3K – $368.3K
NOI $22,100 @ 7.0% cap · market cap 7.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
1,298
Businesses Nearby
Explore this area
Business Placement
Demographics for 85282, AZ
52,351
Population
25,667
Households
2
Avg Household Size
33
Median Age
44%
College-Educated
94%
High-School Grad
11.1 sq mi
ZIP Area
4,716
Density / Sq Mi
$79,084
Median Household Income
$43,863
Median Earnings
$1,627
Median Rent
$370,000
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Two-bedroom unit offers vaulted ceilings, an updated kitchen, balcony, and access to a community pool.
Where is this residential income property located?
The property is located at 2035 S Elm St #247 Tempe, AZ.
What is the asking price?
The asking price for this property is $280,000.
What are key features of this property?
This property features: 2‑bedroom, 2‑bath upstairs condominium with 1,004 square feet; Updated kitchen with solid stone countertops, light cabinetry, breakfast bar, and newer appliances; Private balcony with open views of mature trees and sunsets
