Duplex with Updated
For Sale
$169,900
346 E Second St, Lexington, KY 40508
Fully leased duplex with two one-bedroom residences and recent improvements to one unit and the roof.
Property Size1,134 SF
Price / SF$149.82
Days on Market11
Property Features for 346 E Second St
General Information
Standard status
Active
Size
1,134 SF
Property subtype
Residential Income
Occupancy
100%
Units
Unit Mix
2 x 1BR/1BA
Multifamily Units
2
Additional Details
Gross Income
$19,380
Listing Agency:
Lifstyl Real Estate
(512) 921-2794
Listed By:
M Scott Peace · License #240444
(512) 921-2794
Source:
Exprealty
Added: Aug 13
Changed: Aug 22
Last Checked: Aug 22 at 5:51AM
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 Lifstyl Real Estate
Investment Insights
Based on property information with market context.
This fully occupied duplex in downtown Lexington contains two separate residences, each arranged with a living room, kitchen, one bedroom, and one full bathroom. The property encompasses 1,134 square feet and is being offered as-is, with inspections welcome.
Unit 1 received flooring and kitchen upgrades in 2021, while the building’s roof was replaced in 2023. Existing tenants provide immediate occupancy across both units, and the property is located at 346 E Second St in Lexington, Kentucky.
Unit 1 received flooring and kitchen upgrades in 2021, while the building’s roof was replaced in 2023. Existing tenants provide immediate occupancy across both units, and the property is located at 346 E Second St in Lexington, Kentucky.
Key Highlights
- Two‑unit duplex totaling 1,134 square feet
- Both residences are currently occupied
- Each unit includes a living room, kitchen, 1 bedroom, and 1 full bathroom
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
$9,421
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
5.55%
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%
$188,420
$188.4K
Cap Rate 7%
$134,586
$134.6K
Cap Rate 9%
$104,678
$104.7K
Market Conditions
NOI Build-Up for 1,134 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
$14.2K $12.48/SF
− Vacancy
−$693 −$0.61/SF
EGI
$13.5K $11.87/SF
− OpEx
−$4.0K −$3.56/SF
NOI
$9.4K $8.31/SF
Area
Lexington, KY
Vacancy
4.90%
Lease Rate
$12.48 /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%
$188,420
Cap Rate 7%
$134,586
Cap Rate 9%
$104,678
Alternative Uses
Best Use
Multifamily LT 5
$134.6K
$117.8K – $157.0K
NOI $9,421 @ 7.0% cap · market cap 5.55%
Second Best
Apartment 5plus
$122.1K
$106.8K – $142.5K
NOI $8,547 @ 7.0% cap · market cap 5.03%
Theoretical Best
Office A
$236.3K
$206.7K – $275.7K
NOI $16,539 @ 7.0% cap · market cap 9.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
3,600
Businesses Nearby
Explore this area
Business Placement
Demographics for 40508, KY
25,586
Population
11,458
Households
2.2
Avg Household Size
26
Median Age
36%
College-Educated
86%
High-School Grad
4.2 sq mi
ZIP Area
6,092
Density / Sq Mi
$28,040
Median Household Income
$13,316
Median Earnings
$900
Median Rent
$174,900
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?
Duplex - Fully leased duplex with two one-bedroom residences and recent improvements to one unit and the roof.
Where is this duplex located?
The property is located at 346 E Second St Lexington, KY.
What is the asking price?
The asking price for this property is $169,900.
What are key features of this property?
This property features: Two‑unit duplex totaling 1,134 square feet; Both residences are currently occupied; Each unit includes a living room, kitchen, 1 bedroom, and 1 full bathroom
