Two-Unit Duplex
New
For Sale
$137,000
2506 40th St, Lubbock, TX 79413
Tenant-occupied duplex with a two-bedroom home and separate efficiency unit.
Property Size1,041 SF
Price / SF$131.60
Days on Market4
Property Features for 2506 40th St
General Information
Standard status
Active
Size
1,041 SF
Property subtype
Multi-Family
Units
Unit Mix
1 x 2BR/1BA, 1 x 1BR/1BA
Multifamily Units
2
Additional Details
Gross Income
$19,200
Building Details
Year Built
1950
Listing Agency:
Brick & Loft Realty
(806) 329-8806
Listed By:
Mike Hagler · License #0827224
Source:
Raftercrossrealty
Added: Aug 9
Changed: Aug 10
Last Checked: Aug 11 at 10:11AM
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 Brick & Loft Realty
Investment Insights
Based on property information with market context.
This duplex includes two residential units totaling 1,041 square feet. The primary residence offers 2 bedrooms and 1 bathroom, while the separate efficiency unit provides 1 bedroom and 1 bathroom. The property was built in 1950 and is currently occupied under leases extending through summer 2026.
Located at 2506 40th St in Lubbock, Texas, the property combines a larger home with a compact secondary unit in one residential income asset.
Located at 2506 40th St in Lubbock, Texas, the property combines a larger home with a compact secondary unit in one residential income asset.
Key Highlights
- Two‑unit residential property totaling 1,041 square feet
- Main residence includes 2 bedrooms and 1 bathroom
- Separate efficiency unit has 1 bedroom and 1 bathroom
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
$9,402
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
6.86%
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%
$188,040
$188.0K
Cap Rate 7%
$134,314
$134.3K
Cap Rate 9%
$104,467
$104.5K
Market Conditions
NOI Build-Up for 1,041 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
$14.4K $13.80/SF
− Vacancy
−$934 −$0.90/SF
EGI
$13.4K $12.90/SF
− OpEx
−$4.0K −$3.87/SF
NOI
$9.4K $9.03/SF
Area
Lubbock, TX
Vacancy
6.50%
Lease Rate
$13.80 /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%
$188,040
Cap Rate 7%
$134,314
Cap Rate 9%
$104,467
Alternative Uses
Best Use
Multifamily LT 5
$134.3K
$117.5K – $156.7K
NOI $9,402 @ 7.0% cap · market cap 6.86%
Second Best
Apartment 5plus
$120.6K
$105.5K – $140.7K
NOI $8,442 @ 7.0% cap · market cap 6.16%
Theoretical Best
Office A
$262.4K
$229.6K – $306.2K
NOI $18,371 @ 7.0% cap · market cap 13.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
705
Businesses Nearby
Explore this area
Business Placement
Demographics for 79413, TX
20,962
Population
9,590
Households
2.2
Avg Household Size
35
Median Age
35%
College-Educated
91%
High-School Grad
4.7 sq mi
ZIP Area
4,460
Density / Sq Mi
$67,062
Median Household Income
$38,004
Median Earnings
$1,325
Median Rent
$195,900
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 - Tenant-occupied duplex with a two-bedroom home and separate efficiency unit.
Where is this duplex located?
The property is located at 2506 40th St Lubbock, TX.
What is the asking price?
The asking price for this property is $137,000.
What are key features of this property?
This property features: Two‑unit residential property totaling 1,041 square feet; Main residence includes 2 bedrooms and 1 bathroom; Separate efficiency unit has 1 bedroom and 1 bathroom
