Two-Unit Duplex
For Sale
$137,000
2506 40th Street, Lubbock, TX 79413
Residential Income, Lubbock, TX
Property Size1,041 SF
Lot Size0.18 Acres
Price / SF$131.60
Days on Market50
Property Features for 2506 40th Street
General Information
Property type
Residential Multi Family
Property subtype
Other
Bedrooms
3
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 2, Bedroom 2, Bedroom 3, Bathroom 1, Bedroom 1
Parking features
On Street, Driveway
Elementary school district
Lubbock ISD
Middle school district
Lubbock ISD
High school district
Lubbock ISD
Directions
GPS will take you to the property
Subdivision
3
Standard status
Active
APN
R125837
Size
1,041 SF
Lot size
0.18 Acres
Taxes and HOA fees
Tax Description
Badley Blk 2 L 8
Tax Annual Amount
510
Legal Description
Badley Blk 2 L 8
Utilities
Sewer type
Public Sewer
Cooling system
Ceiling Fan(s)
Water source
Public
Building Details
Year built
1950
Number of units
2
Flooring type
Vinyl
Building materials
Vinyl Siding
Roof type
Composition
Listing Agency:
Brick & Loft Realty
(806) 999-0722
Listed By:
Mike Hagler · License #0827224
(806) 329-8806
Added: Jul 11
Changed: Aug 27
Last Checked: Aug 29 at 3:06PM
MLS# 202609491
Copyright © 2026 Lubbock Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 1,041-square-foot duplex includes a two-bedroom, one-bathroom main residence and a separate efficiency unit with one bedroom and one bathroom. The property was built in 1950 and features vinyl siding, vinyl flooring, ceiling-fan cooling, and a composition roof.
Set on a 0.18-acre lot, the property has driveway and on-street parking, along with public water and public sewer service. Existing tenants are in place under current lease agreements through summer 2026, providing an established occupancy arrangement for the two-unit configuration.
Set on a 0.18-acre lot, the property has driveway and on-street parking, along with public water and public sewer service. Existing tenants are in place under current lease agreements through summer 2026, providing an established occupancy arrangement for the two-unit configuration.
Key Highlights
- Two‑unit layout with a 2‑bedroom, 1‑bathroom main home and 1‑bedroom, 1‑bathroom efficiency unit
- 1,041 square feet on a 0.18‑acre lot
- Tenants in place through summer 2026 under current lease agreements
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
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
436
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 - Income-producing residential property with an attached efficiency unit and current leases extending through summer 2026.
Where is this duplex located?
The property is located at 2506 40th Street 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 layout with a 2‑bedroom, 1‑bathroom main home and 1‑bedroom, 1‑bathroom efficiency unit; 1,041 square feet on a 0.18‑acre lot; Tenants in place through summer 2026 under current lease agreements
