Multifamily Property With Two
For Sale
$350,000
288 Cates Road, Rockwood, TN 37854
Two separate residences share a driveway while maintaining distinct living areas on a rural acreage tract.
Property Size2,256 SF
Price / SF$155.14
Days on Market217
Property Features for 288 Cates Road
General Information
Standard status
Active
Size
2,256 SF
Property subtype
Multi-Family
Taxes and HOA fees
Annual Taxes
$1,219
Amenities
Central Cooling
Yes
Carpet, Vinyl
True
Central, Electric
Dishwasher, Dryer, Range, Refrigerator, Washer
Shed
Block, Frame
Building Details
Year Built
1947
Listing Agency:
LeConte Realty, LLC
(865) 850-6477
Listed By:
Michael Grider
Source:
Compass
Added: Jan 26
Changed: Aug 30
Last Checked: Aug 30 at 9:44AM
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 LeConte Realty, LLC
Investment Insights
Based on property information with market context.
This multifamily property includes two separate residences totaling 2,256 square feet on 4.6 acres. The primary home has 3 bedrooms, 2 baths, an oversized kitchen, a living room with a wood-burning fireplace, and views across the open field. The second residence contains 2 bedrooms and 1 bath, providing a distinct additional living space. The property was built in 1947 and also includes a shed.
The homes use a shared driveway but remain separately positioned, with a substantial portion of the land located across the road. That tract is flat and usable, with a creek along its rear boundary. Public water and internet are available. The property is near Watts Bar Lake, with access to boating and fishing opportunities in the surrounding area.
The homes use a shared driveway but remain separately positioned, with a substantial portion of the land located across the road. That tract is flat and usable, with a creek along its rear boundary. Public water and internet are available. The property is near Watts Bar Lake, with access to boating and fishing opportunities in the surrounding area.
Key Highlights
- Two residences totaling 2,256 square feet on 4.6 acres
- Primary home includes 3 bedrooms, 2 baths, oversized kitchen, and wood‑burning fireplace
- Secondary residence offers 2 bedrooms and 1 bath
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
$22,001
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
6.29%
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%
$440,020
$440.0K
Cap Rate 7%
$314,300
$314.3K
Cap Rate 9%
$244,456
$244.5K
Market Conditions
NOI Build-Up for 2,256 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
$33.8K $15.00/SF
− Vacancy
−$2.4K −$1.07/SF
EGI
$31.4K $13.93/SF
− OpEx
−$9.4K −$4.18/SF
NOI
$22.0K $9.75/SF
Area
Roane County, TN
Vacancy
7.12%
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%
$440,020
Cap Rate 7%
$314,300
Cap Rate 9%
$244,456
Alternative Uses
Best Use
Multifamily LT 5
$314.3K
$275.0K – $366.7K
NOI $22,001 @ 7.0% cap · market cap 6.29%
Second Best
Apartment 5plus
$289.2K
$253.1K – $337.4K
NOI $20,246 @ 7.0% cap · market cap 5.78%
Theoretical Best
Office A
$558.8K
$488.9K – $651.9K
NOI $39,114 @ 7.0% cap · market cap 11.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
28
Businesses Nearby
Explore this area
Business Placement
Demographics for 37854, TN
12,614
Population
5,908
Households
2.1
Avg Household Size
47
Median Age
14%
College-Educated
86%
High-School Grad
136.4 sq mi
ZIP Area
92
Density / Sq Mi
$49,098
Median Household Income
$32,554
Median Earnings
$783
Median Rent
$154,600
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?
Multifamily property - Two separate residences share a driveway while maintaining distinct living areas on a rural acreage tract.
Where is this multifamily property located?
The property is located at 288 Cates Road Rockwood, TN.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: Two residences totaling 2,256 square feet on 4.6 acres; Primary home includes 3 bedrooms, 2 baths, oversized kitchen, and wood‑burning fireplace; Secondary residence offers 2 bedrooms and 1 bath
