Occupied Duplex with Recent
For Sale
$247,000
2712 N Orchard Knob Avenue, Chattanooga, TN 37406
Two leased units combine current occupancy with recent interior and infrastructure improvements.
Property Size1,647 SF
Days on Market9
Property Features for 2712 N Orchard Knob Avenue
General Information
Standard status
Active
Size
1,647 SF
Property subtype
Duplex
Occupancy
100%
Additional Details
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$3,204
Building Details
Building Size
1,647 SF
Year Built
1998
Listing Agency:
Keller Williams Realty
Listed By:
Charles Jabaley · License #TN352704
(423) 710-4602
Source:
Gracefrankgroup
Added: Sep 17
Changed: Sep 19
Last Checked: Sep 24 at 3:49PM
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 Realty
Investment Insights
Based on property information with market context.
Built in 1998, this duplex is fully occupied and includes two leased units. Unit A has been refreshed with new paint, flooring, subflooring, and a vanity. Unit B features a water heater replaced in 2019, while the roof is approximately 10 years old.
Additional property improvements include a newer sump pump, French drain, and sewer line. Unit A is leased through March 2027, and Unit B is leased through June 2027. The property is located in Chattanooga near downtown, with both units currently generating rental income.
Additional property improvements include a newer sump pump, French drain, and sewer line. Unit A is leased through March 2027, and Unit B is leased through June 2027. The property is located in Chattanooga near downtown, with both units currently generating rental income.
Key Highlights
- Fully occupied duplex with both units leased
- Unit A updated with new paint, flooring, subflooring, and vanity
- Unit A lease extends through March 2027
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
$16,169
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
6.55%
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%
$323,380
$323.4K
Cap Rate 7%
$230,986
$231.0K
Cap Rate 9%
$179,656
$179.7K
Market Conditions
NOI Build-Up for 1,647 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
$24.7K $15.00/SF
− Vacancy
−$1.6K −$0.98/SF
EGI
$23.1K $14.03/SF
− OpEx
−$6.9K −$4.21/SF
NOI
$16.2K $9.82/SF
Area
Chattanooga, TN
Vacancy
6.50%
Lease Rate
$15.00 /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%
$323,380
Cap Rate 7%
$230,986
Cap Rate 9%
$179,656
Alternative Uses
Best Use
Multifamily LT 5
$231.0K
$202.1K – $269.5K
NOI $16,169 @ 7.0% cap · market cap 6.55%
Second Best
Apartment 5plus
$207.3K
$181.4K – $241.8K
NOI $14,510 @ 7.0% cap · market cap 5.87%
Theoretical Best
Office A
$363.7K
$318.3K – $424.4K
NOI $25,462 @ 7.0% cap · market cap 10.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
2
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
428
Businesses Nearby
Explore this area
Business Placement
Demographics for 37406, TN
12,422
Population
5,894
Households
2.1
Avg Household Size
36
Median Age
16%
College-Educated
85%
High-School Grad
12.1 sq mi
ZIP Area
1,027
Density / Sq Mi
$42,993
Median Household Income
$31,076
Median Earnings
$944
Median Rent
$150,300
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Duplex - Two leased units combine current occupancy with recent interior and infrastructure improvements.
Where is this duplex located?
The property is located at 2712 N Orchard Knob Avenue Chattanooga, TN.
What is the asking price?
The asking price for this property is $247,000.
What are key features of this property?
This property features: Fully occupied duplex with both units leased; Unit A updated with new paint, flooring, subflooring, and vanity; Unit A lease extends through March 2027
