Three-Family Residential Income
For Sale
$625,000
324 Cottage St, New Bedford, MA 02740
Well-maintained three-unit home with separate utilities, in-unit laundry hookups, and off-street parking for up to three cars.
Property Size3,385 SF
Days on Market58
Property Features for 324 Cottage St
General Information
Standard status
Active
Size
3,385 SF
Total Parking Spaces
3
Property subtype
Investment
Additional Details
Multifamily Units
3
Taxes and HOA fees
Annual Taxes
$5,715
Building Details
Building Size
3,385 SF
Year Built
1891
Stories
3
Units
3
Tenancy
Multi
Listing Agency:
Keller Williams South Watuppa
(401) 648-1692
Listed By:
The Vision Group
(401) 648-1692
Source:
Elliman
Added: Jun 24
Changed: Aug 8
Last Checked: Aug 20 at 11:59AM
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 South Watuppa
Investment Insights
Based on property information with market context.
This well-maintained three-family property offers versatile layouts across three separate units. Unit 1 features two bedrooms, a double parlor with a front room that can be converted to a third bedroom, and in-unit laundry. Unit 2 includes three bedrooms plus a flexible bonus room that can serve as a fourth bedroom or home office. Unit 3 offers two spacious bedrooms with ample living space. The property includes major updates such as brand-new PVC waste piping in the basement, and separate utilities for each unit. A full basement provides storage and additional washer/dryer hookups.
The home is located about one mile from historic downtown New Bedford, with nearby shops, dining, and the waterfront. It also offers access to the MBTA commuter rail to Boston via a short drive. Walkability is rated very walkable, with some transit access.
For buyers seeking a multi-unit owner-occupied or investment setup, the separate utilities and unit-level laundry hookups support practical day-to-day management. The off-street driveway parking for up to three cars and the private backyard add tenant-friendly everyday utility, while the flexible bonus space in Unit 2 can accommodate a range of household needs.
The home is located about one mile from historic downtown New Bedford, with nearby shops, dining, and the waterfront. It also offers access to the MBTA commuter rail to Boston via a short drive. Walkability is rated very walkable, with some transit access.
For buyers seeking a multi-unit owner-occupied or investment setup, the separate utilities and unit-level laundry hookups support practical day-to-day management. The off-street driveway parking for up to three cars and the private backyard add tenant-friendly everyday utility, while the flexible bonus space in Unit 2 can accommodate a range of household needs.
Key Highlights
- Built in 1891, this well‑maintained 3‑family home offers versatile unit layouts and strong rental‑income potential.
- Unit 1: 2 BR with a double parlor that can be converted to a 3rd BR, plus in‑unit laundry.
- Unit 2: 3 BR with a flexible bonus room for a 4th BR or home office.
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
$48,658
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
7.79%
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%
$973,160
$973.2K
Cap Rate 7%
$695,114
$695.1K
Cap Rate 9%
$540,644
$540.6K
Market Conditions
NOI Build-Up for 3,385 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
$75.1K $22.20/SF
− Vacancy
−$5.6K −$1.67/SF
EGI
$69.5K $20.54/SF
− OpEx
−$20.9K −$6.16/SF
NOI
$48.7K $14.37/SF
Area
New Bedford, MA
Vacancy
7.50%
Lease Rate
$22.20 /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%
$973,160
Cap Rate 7%
$695,114
Cap Rate 9%
$540,644
Alternative Uses
Best Use
Multifamily LT 5
$695.1K
$608.2K – $811.0K
NOI $48,658 @ 7.0% cap · market cap 7.79%
Second Best
Apartment 5plus
$638.2K
$558.4K – $744.5K
NOI $44,671 @ 7.0% cap · market cap 7.15%
Theoretical Best
Office A
$998.1K
$873.3K – $1.16M
NOI $69,866 @ 7.0% cap · market cap 11.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,047
Businesses Nearby
Explore this area
Business Placement
Demographics for 02740, MA
45,166
Population
20,532
Households
2.2
Avg Household Size
39
Median Age
18%
College-Educated
77%
High-School Grad
5.7 sq mi
ZIP Area
7,924
Density / Sq Mi
$54,563
Median Household Income
$39,310
Median Earnings
$1,052
Median Rent
$303,400
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Triplex - Well-maintained three-unit home with separate utilities, in-unit laundry hookups, and off-street parking for up to three cars.
Where is this triplex located?
The property is located at 324 Cottage St New Bedford, MA.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: Built in 1891, this well‑maintained 3‑family home offers versatile unit layouts and strong rental‑income potential.; Unit 1: 2 BR with a double parlor that can be converted to a 3rd BR, plus in‑unit laundry.; Unit 2: 3 BR with a flexible bonus room for a 4th BR or home office.
