Two-Unit Duplex With
New
For Sale
$319,000
227/229 Pethel St, Kannapolis, NC 28081
Each residence offers two bedrooms and one bathroom, with utilities paid directly by the tenants.
Property Size1,443 SF
Price / SF$221.07
Days on Market2
Property Features for 227/229 Pethel St
General Information
Standard status
Active
Size
1,443 SF
Property subtype
Multi-Family
Occupancy
100%
Units
Unit Mix
2 x 2BR/1BA
Multifamily Units
2
Building Details
Year Built
1928
Tenancy
Multi
Listed By:
Leigh Brown
(704) 705-7036
Source:
Onecommunity
Added: Sep 9
Last Checked: Sep 10 at 6:22AM
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 Leigh Brown
Investment Insights
Based on property information with market context.
This 1928 duplex contains two residential units, each configured with two bedrooms and one bathroom. The lower level includes two garages, with one currently occupied and the second offering potential for separate rental use. Both residences have long-term tenants, and each tenant handles their own utilities. Washers and dryers belong to the tenants; the refrigerator at 229 Pethel St. is also tenant-owned.
The property is located at 227/229 Pethel St. in Kannapolis, off N Main Street and approximately 2 miles from downtown Kannapolis. The combination of two occupied residences, a two-garage lower level, and separately metered tenant utility responsibility provides a straightforward duplex configuration for an owner-user or rental property buyer.
The property is located at 227/229 Pethel St. in Kannapolis, off N Main Street and approximately 2 miles from downtown Kannapolis. The combination of two occupied residences, a two-garage lower level, and separately metered tenant utility responsibility provides a straightforward duplex configuration for an owner-user or rental property buyer.
Key Highlights
- Two‑unit duplex with 2 bedrooms and 1 bathroom in each unit
- Two lower‑level garages; one is occupied and the other may be rented separately
- Long‑term tenants occupy both residential units
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
$16,731
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
5.24%
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%
$334,620
$334.6K
Cap Rate 7%
$239,014
$239.0K
Cap Rate 9%
$185,900
$185.9K
Market Conditions
NOI Build-Up for 1,443 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
$26.0K $18.00/SF
− Vacancy
−$2.1K −$1.44/SF
EGI
$23.9K $16.56/SF
− OpEx
−$7.2K −$4.97/SF
NOI
$16.7K $11.59/SF
Area
Cabarrus County, NC
Vacancy
7.98%
Lease Rate
$18.00 /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%
$334,620
Cap Rate 7%
$239,014
Cap Rate 9%
$185,900
Alternative Uses
Best Use
Multifamily LT 5
$239.0K
$209.1K – $278.9K
NOI $16,731 @ 7.0% cap · market cap 5.24%
Second Best
Apartment 5plus
$218.1K
$190.8K – $254.5K
NOI $15,267 @ 7.0% cap · market cap 4.79%
Theoretical Best
Office A
$454.2K
$397.4K – $529.9K
NOI $31,792 @ 7.0% cap · market cap 9.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
303
Businesses Nearby
Explore this area
Business Placement
Demographics for 28081, NC
28,583
Population
12,400
Households
2.3
Avg Household Size
38
Median Age
26%
College-Educated
88%
High-School Grad
30.3 sq mi
ZIP Area
943
Density / Sq Mi
$69,167
Median Household Income
$40,167
Median Earnings
$1,080
Median Rent
$257,300
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 - Each residence offers two bedrooms and one bathroom, with utilities paid directly by the tenants.
Where is this duplex located?
The property is located at 227/229 Pethel St Kannapolis, NC.
What is the asking price?
The asking price for this property is $319,000.
What are key features of this property?
This property features: Two‑unit duplex with 2 bedrooms and 1 bathroom in each unit; Two lower‑level garages; one is occupied and the other may be rented separately; Long‑term tenants occupy both residential units
