Two-Unit Residential Income
For Sale
$165,000
Pending
2205 Ocoee Street, Chattanooga, TN 37406
Duplex with two separate units, separate meters, and power available, currently needing rental-ready repairs.
Property Size1,576 SF
Days on Market521
Property Features for 2205 Ocoee Street
General Information
Standard status
Pending
Size
1,576 SF
Property subtype
Multi Family
Additional Details
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$892
Building Details
Year Built
1930
Listing Agency:
Coldwell Banker Commercial Kinard Realty
(423) 476-5535
Listed By:
Shawn Matthews · License #314204
(423) 284-3233
Source:
Exitrealty
Added: Apr 3, 2025
Changed: Aug 8
Last Checked: Jul 23 at 6:30AM
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 Coldwell Banker Commercial Kinard Realty
Investment Insights
Based on property information with market context.
This two-unit duplex includes a one-bedroom unit on the right side and a two-story two-bedroom unit on the left side. The property has separate meters and power is currently on. The units are vacant and will require rental-ready repairs to bring them back to market.
The asset is located at 2205 Ocoee Street in Chattanooga, TN, and is described as being within the footprint of downtown Chattanooga.
As configured, the building provides two distinct residential layouts with separate utilities, offering straightforward separation for a buyer looking to renovate and re-lease both units.
The asset is located at 2205 Ocoee Street in Chattanooga, TN, and is described as being within the footprint of downtown Chattanooga.
As configured, the building provides two distinct residential layouts with separate utilities, offering straightforward separation for a buyer looking to renovate and re-lease both units.
Key Highlights
- Duplex built in 1930 with two separate units
- Right side is a 1‑bedroom unit
- Left side is a 2‑story 2‑bedroom unit
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
$13,884
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
8.41%
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%
$277,680
$277.7K
Cap Rate 7%
$198,343
$198.3K
Cap Rate 9%
$154,267
$154.3K
Market Conditions
NOI Build-Up for 1,576 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
$26.9K $17.04/SF
− Vacancy
−$1.6K −$1.02/SF
EGI
$25.2K $16.02/SF
− OpEx
−$11.4K −$7.21/SF
NOI
$13.9K $8.81/SF
Area
Chattanooga, TN
Vacancy
6.00%
Lease Rate
$17.04 /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%
$277,680
Cap Rate 7%
$198,343
Cap Rate 9%
$154,267
Alternative Uses
Best Use
Multifamily LT 5
$221.0K
$193.4K – $257.9K
NOI $15,472 @ 7.0% cap · market cap 9.38%
Second Best
Apartment 5plus
$198.3K
$173.6K – $231.4K
NOI $13,884 @ 7.0% cap · market cap 8.41%
Theoretical Best
Office A
$348.1K
$304.6K – $406.1K
NOI $24,365 @ 7.0% cap · market cap 14.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
256
Businesses Nearby
Explore this area
Business Placement
Demographics for 37406, TN
12,422
Population
5,894
Households
2.1
Avg Household Size
36
Median Age
16%
College-Educated
85%
High-School Grad
12.1 sq mi
ZIP Area
1,027
Density / Sq Mi
$42,993
Median Household Income
$31,076
Median Earnings
$944
Median Rent
$150,300
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Duplex with two separate units, separate meters, and power available, currently needing rental-ready repairs.
Where is this duplex located?
The property is located at 2205 Ocoee Street Chattanooga, TN.
What is the asking price?
The asking price for this property is $165,000.
What are key features of this property?
This property features: Duplex built in 1930 with two separate units; Right side is a 1‑bedroom unit; Left side is a 2‑story 2‑bedroom unit
