Updated Two-Unit
For Sale
$235,000
Pending
2823-2825 Ontario Street, Ames, IA 50014
Residential Income, Ames, IA
Property Size2,374 SF
Lot Size0.33 Acres
Days on Market96
Property Features for 2823-2825 Ontario Street
General Information
Property type
Residential Multi Family
Property subtype
Duplex
Zoning
RL
Elementary school district
Ames
Middle school district
Ames
High school district
Ames
Directions
use GPS.
Subdivision
0002 - Ames NW
Standard status
Pending
APN
05-33-352-050
Size
2,374 SF
Lot size
0.33 Acres
Taxes and HOA fees
Tax Description
SECTION:33 TOWNSHIP:84 RANGE:24 SW SW TRACT D LOT 6
Tax Annual Amount
3832
Legal Description
SECTION:33 TOWNSHIP:84 RANGE:24 SW SW TRACT D LOT 6
Building Details
Year built
1976
Number of units
2
Listing Agency:
LPT Realty, LLC
(515) 669-4010
Listed By:
Zhan Zhang · License #S69622
(404) 433-2653
Added: Jun 16
Changed: Sep 7
Last Checked: Sep 19 at 12:06AM
MLS# 70480
Copyright © 2026 Central Iowa Board of Realtors, Inc. 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.
Built in 1976, this 2,374-square-foot duplex contains two independent residences, each arranged with 2 bedrooms, 1 full bathroom, and an attached garage. The property sits on a 0.3344-acre lot and carries RL zoning. One residence has been occupied by the same tenant for over five years, while the second is vacant following a comprehensive renovation. Updates to the vacant unit include a new kitchen, bathroom, carpet, vinyl flooring, windows, furnace, stainless steel appliances, and a 2024 roof.
Public bus stops are located across the street, and the property is approximately a 5-minute walk from campus. Abbie Sawyer Elementary School is approximately a 3-minute drive away. The two-unit layout supports continued rental use or occupancy of one residence alongside the other.
Public bus stops are located across the street, and the property is approximately a 5-minute walk from campus. Abbie Sawyer Elementary School is approximately a 3-minute drive away. The two-unit layout supports continued rental use or occupancy of one residence alongside the other.
Key Highlights
- 2,374 square feet on a 0.3344‑acre lot
- Two units with 2 bedrooms and 1 full bathroom each
- Attached garage serving each residence
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
$18,181
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
7.74%
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%
$363,620
$363.6K
Cap Rate 7%
$259,729
$259.7K
Cap Rate 9%
$202,011
$202.0K
Market Conditions
NOI Build-Up for 2,374 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
$27.3K $11.52/SF
− Vacancy
−$1.4K −$0.58/SF
EGI
$26.0K $10.94/SF
− OpEx
−$7.8K −$3.28/SF
NOI
$18.2K $7.66/SF
Area
Story County, IA
Vacancy
5.03%
Lease Rate
$11.52 /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%
$363,620
Cap Rate 7%
$259,729
Cap Rate 9%
$202,011
Alternative Uses
Best Use
Multifamily LT 5
$259.7K
$227.3K – $303.0K
NOI $18,181 @ 7.0% cap · market cap 7.74%
Second Best
Apartment 5plus
$226.8K
$198.5K – $264.6K
NOI $15,877 @ 7.0% cap · market cap 6.76%
Theoretical Best
Office A
$554.8K
$485.4K – $647.3K
NOI $38,835 @ 7.0% cap · market cap 16.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
348
Businesses Nearby
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Business Placement
Demographics for 50014, IA
31,587
Population
14,860
Households
2.1
Avg Household Size
26
Median Age
69%
College-Educated
98%
High-School Grad
54.2 sq mi
ZIP Area
583
Density / Sq Mi
$57,372
Median Household Income
$20,952
Median Earnings
$1,083
Median Rent
$312,700
Median Home Value
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Market
Vacancy Rate% for Multifamily in Midwest region
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Frequently Asked Questions
What type of property is this?
Duplex - Two separately configured residences offer attached garages, flexible occupancy, and convenient access to campus and public transportation.
Where is this duplex located?
The property is located at 2823-2825 Ontario Street Ames, IA.
What is the asking price?
The asking price for this property is $235,000.
What are key features of this property?
This property features: 2,374 square feet on a 0.3344‑acre lot; Two units with 2 bedrooms and 1 full bathroom each; Attached garage serving each residence
