Tri-Plex Residential Income
For Sale
$649,000
2312 Dearborn Avenue, Missoula, MT 59801
Tri-plex with three bedrooms upstairs and two one-bedroom units, plus updated roof, heaters, and mini-split HVAC.
Property Size2,400 SF
Price / SF$270.42
Days on Market126
Property Features for 2312 Dearborn Avenue
General Information
Standard status
Active
Size
2,400 SF
Property subtype
Triplex
Taxes and HOA fees
Annual Taxes
$4,797
Amenities
Garage Spaces: 0
Style: Other
Other
Building Details
Year Built
1981
Listing Agency:
RE/MAX All Stars
(406) 880-7508
Listed By:
Nora Templer · License #11848
Source:
Clearwaterproperties
Added: Apr 7
Changed: Aug 8
Last Checked: Jul 21 at 12:51PM
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 RE/MAX All Stars
Investment Insights
Based on property information with market context.
This tri-plex residential income property includes three separate units. The upper unit has three bedrooms and two bathrooms, while the two lower units each feature one bedroom and one bathroom. Updates listed by the seller include a newer metal roof, a newer hot water heater, and updated electric mini split heat pumps for heating and air conditioning. Units 1 and 3 also have newer baseboard heating. Small storage units are included at the back of the property.
The property offers ample parking in both the rear and on the street. It is described as being within walking distance to shopping, parks, and the hospital.
Outdoors, the property provides space at the rear for tenant use, with room noted for playing. The configuration supports a mix of larger and smaller households across the three units.
The property offers ample parking in both the rear and on the street. It is described as being within walking distance to shopping, parks, and the hospital.
Outdoors, the property provides space at the rear for tenant use, with room noted for playing. The configuration supports a mix of larger and smaller households across the three units.
Key Highlights
- Tri‑plex built in 1981 with an upper 3BR/2BA unit and two 1BR/1BA lower units
- Newer metal roof plus newer hot water heater
- Updated electric mini‑split heat pumps for efficient heating and air conditioning
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
$25,620
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
3.95%
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%
$512,400
$512.4K
Cap Rate 7%
$366,000
$366.0K
Cap Rate 9%
$284,667
$284.7K
Market Conditions
NOI Build-Up for 2,400 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
$50.7K $21.12/SF
− Vacancy
−$4.1K −$1.71/SF
EGI
$46.6K $19.41/SF
− OpEx
−$21.0K −$8.73/SF
NOI
$25.6K $10.68/SF
Area
Missoula County, MT
Vacancy
8.10%
Lease Rate
$21.12 /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%
$512,400
Cap Rate 7%
$366,000
Cap Rate 9%
$284,667
Alternative Uses
Best Use
Apartment 5plus
$366.0K
$320.3K – $427.0K
NOI $25,620 @ 7.0% cap · market cap 3.95%
Second Best
Multifamily LT 5
$343.1K
$300.2K – $400.3K
NOI $24,016 @ 7.0% cap · market cap 3.70%
Theoretical Best
Specialty Retail
$692.0K
$605.5K – $807.3K
NOI $48,438 @ 7.0% cap · market cap 7.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,488
Businesses Nearby
Explore this area
Business Placement
Demographics for 59801, MT
30,629
Population
15,814
Households
1.9
Avg Household Size
34
Median Age
51%
College-Educated
97%
High-School Grad
7.7 sq mi
ZIP Area
3,978
Density / Sq Mi
$55,022
Median Household Income
$34,320
Median Earnings
$1,086
Median Rent
$393,400
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Triplex - Tri-plex with three bedrooms upstairs and two one-bedroom units, plus updated roof, heaters, and mini-split HVAC.
Where is this triplex located?
The property is located at 2312 Dearborn Avenue Missoula, MT.
What is the asking price?
The asking price for this property is $649,000.
What are key features of this property?
This property features: Tri‑plex built in 1981 with an upper 3BR/2BA unit and two 1BR/1BA lower units; Newer metal roof plus newer hot water heater; Updated electric mini‑split heat pumps for efficient heating and air conditioning
