Furnished Short-Term Rental
For Sale
$250,000
255 Thompson Ave, Louisville, KY 40206
Renovated two-bedroom residence with two full baths, furnishings, appliances, and household essentials included.
Property Size1,338 SF
Price / SF$186.85
Days on Market119
Property Features for 255 Thompson Ave
General Information
Standard status
Active
Size
1,338 SF
Total Parking Spaces
1
Property subtype
Multifamily
Zoning
R5B
Units
Unit Mix
1 x 2BR/2BA
Multifamily Units
1
Additional Details
Furnished
Yes
Amenities
Power
Water
Sewer
Natural Gas
1 Parking Spaces
Building Details
Year Built
1992
Listing Agency:
Caperton Realty
(502) 386-3017
Listed By:
Bryce Cariel · License #267734
(502) 386-3017
Source:
Kcrea.resimplifi
Added: May 5
Changed: Aug 28
Last Checked: Aug 30 at 1:07PM
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 Caperton Realty
Investment Insights
Based on property information with market context.
Located at 255 Thompson Ave in Louisville, this 1,338-square-foot short-term rental property includes two bedrooms and two full bathrooms. Built in 1992 and renovated with contemporary finishes, the residence is furnished and equipped for continued rental use.
Furniture, linens, appliances, cookware, and other stated household essentials remain with the property. The asset is zoned R5B, and the seller prefers to package it with 253 Thompson. The property is offered as a furnished residential income asset suited to short-term rental operations.
Furniture, linens, appliances, cookware, and other stated household essentials remain with the property. The asset is zoned R5B, and the seller prefers to package it with 253 Thompson. The property is offered as a furnished residential income asset suited to short-term rental operations.
Key Highlights
- 1,338 SF furnished short‑term rental property at 255 Thompson Ave, Louisville, KY 40206
- Two bedrooms and two full bathrooms
- Renovated with modern finishes
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
$9,106
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
3.64%
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%
$182,120
$182.1K
Cap Rate 7%
$130,086
$130.1K
Cap Rate 9%
$101,178
$101.2K
Market Conditions
NOI Build-Up for 1,338 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
$17.5K $13.08/SF
− Vacancy
−$945 −$0.71/SF
EGI
$16.6K $12.37/SF
− OpEx
−$7.5K −$5.57/SF
NOI
$9.1K $6.81/SF
Area
Louisville, KY
Vacancy
5.40%
Lease Rate
$13.08 /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%
$182,120
Cap Rate 7%
$130,086
Cap Rate 9%
$101,178
Alternative Uses
Best Use
Apartment 5plus
$130.1K
$113.8K – $151.8K
NOI $9,106 @ 7.0% cap · market cap 3.64%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$346.8K
$303.5K – $404.6K
NOI $24,277 @ 7.0% cap · market cap 9.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
840
Businesses Nearby
Explore this area
Business Placement
Demographics for 40206, KY
20,196
Population
11,637
Households
1.7
Avg Household Size
38
Median Age
55%
College-Educated
95%
High-School Grad
5.8 sq mi
ZIP Area
3,482
Density / Sq Mi
$72,543
Median Household Income
$48,506
Median Earnings
$1,142
Median Rent
$276,100
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?
Short term rental property - Renovated two-bedroom residence with two full baths, furnishings, appliances, and household essentials included.
Where is this short term rental property located?
The property is located at 255 Thompson Ave Louisville, KY.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: 1,338 SF furnished short‑term rental property at 255 Thompson Ave, Louisville, KY 40206; Two bedrooms and two full bathrooms; Renovated with modern finishes
