Multi-Family Property on Large
For Sale
$410,000
2520 Mckee Rd, Merced, CA 95340
Two homes on one lot near UC Merced and Merced JC.
Property Size1,257 SF
Lot Size0.40 Acres
Days on Market165
Property Features for 2520 Mckee Rd
General Information
Standard status
Active
Size
1,257 SF
Lot size
0.40 Acres
Property subtype
Investment
Building Details
Building Size
1,257 SF
Year Built
1946
Stories
1
Units
2
Listing Agency:
Keller Williams Property Team
(209) 500-4663
Listed By:
Marcus Rodriguez · License #02005100
(209) 500-4663
Source:
Elliman
Added: Mar 11
Changed: Aug 8
Last Checked: Aug 8 at 6:23AM
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 Keller Williams Property Team
Investment Insights
Based on property information with market context.
This multi-family property is located on a lot that is just under half an acre and includes two homes. Each house is currently configured as a two-bedroom, one-bathroom layout, with space available for expansion. Both homes have been fully gutted, providing an opportunity to design the interiors. The lot size allows for additional parking, landscaping, or future development. The property is located near shops, restaurants, and grocery stores, and is a few minutes from both UC Merced and Merced JC. The property offers potential for investment or multi-generational living, with opportunities to renovate and rent out both homes, live in one and lease the other, or design a multi-family setup.
Key Highlights
- Two homes on one large lot - ideal for investment.
- Fully gutted interiors provide a blank canvas.
- Potential for expansion to add rooms to both houses.
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
$16,464
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
4.02%
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%
$329,280
$329.3K
Cap Rate 7%
$235,200
$235.2K
Cap Rate 9%
$182,933
$182.9K
Market Conditions
NOI Build-Up for 1,257 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
$24.9K $19.80/SF
− Vacancy
−$1.4K −$1.09/SF
EGI
$23.5K $18.71/SF
− OpEx
−$7.1K −$5.61/SF
NOI
$16.5K $13.10/SF
Area
Merced County, CA
Vacancy
5.50%
Lease Rate
$19.80 /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%
$329,280
Cap Rate 7%
$235,200
Cap Rate 9%
$182,933
Alternative Uses
Best Use
Multifamily LT 5
$235.2K
$205.8K – $274.4K
NOI $16,464 @ 7.0% cap · market cap 4.02%
Second Best
Apartment 5plus
$218.4K
$191.1K – $254.8K
NOI $15,290 @ 7.0% cap · market cap 3.73%
Theoretical Best
Healthcare Medical
$277.3K
$242.7K – $323.6K
NOI $19,413 @ 7.0% cap · market cap 4.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
183
Businesses Nearby
Explore this area
Business Placement
Demographics for 95340, CA
38,606
Population
13,553
Households
2.8
Avg Household Size
33
Median Age
26%
College-Educated
86%
High-School Grad
52.0 sq mi
ZIP Area
742
Density / Sq Mi
$65,141
Median Household Income
$35,165
Median Earnings
$1,204
Median Rent
$383,200
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?
Duplex - Two homes on one lot near UC Merced and Merced JC.
Where is this duplex located?
The property is located at 2520 Mckee Rd Merced, CA.
What is the asking price?
The asking price for this property is $410,000.
What are key features of this property?
This property features: Two homes on one large lot - ideal for investment.; Fully gutted interiors provide a blank canvas.; Potential for expansion to add rooms to both houses.
