Three-Unit Mixed-Use
For Sale
$165,000
402 Richmond Ave, Ottumwa, IA 52501
Mixed-use configuration includes apartments, office areas, and a kitchenette within one commercial property.
Property Size2,200 SF
Price / SF$75
Days on Market11
Property Features for 402 Richmond Ave
General Information
Standard status
Active
Size
2,200 SF
Property subtype
Residential Income
Property Condition
Severity
Minor
Evidence
ready for updates
Taxes and HOA fees
Annual Taxes
$2,244
Listing Agency:
Lynch Realty Inc
(641) 208-3649
Listed By:
Lincoln Lynch · License #S60347000
(641) 208-3649
Source:
Exprealty
Added: Aug 7
Changed: Aug 16
Last Checked: Aug 16 at 5:43AM
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 Lynch Realty Inc
Investment Insights
Based on property information with market context.
This 2,200 SF mixed-use property at 402 Richmond Ave combines residential and commercial components in a three-unit configuration. The upper level contains a two-bedroom apartment that is currently occupied. The main level includes a studio apartment requiring updates, along with a commercial area divided into two office spaces and a kitchenette.
Utilities are separately metered, providing distinct service arrangements across the property. Garage space is retained by the owner and is not included with the building’s usable unit configuration.
Utilities are separately metered, providing distinct service arrangements across the property. Garage space is retained by the owner and is not included with the building’s usable unit configuration.
Key Highlights
- Three‑unit mixed‑use building at 402 Richmond Ave, Ottumwa, IA
- 2,200 SF property with residential and commercial components
- Upper‑level 2 bedroom apartment is currently occupied
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
$12,613
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
7.64%
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%
$252,260
$252.3K
Cap Rate 7%
$180,186
$180.2K
Cap Rate 9%
$140,144
$140.1K
Market Conditions
NOI Build-Up for 2,200 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
$19.8K $9.00/SF
− Vacancy
−$1.8K −$0.81/SF
EGI
$18.0K $8.19/SF
− OpEx
−$5.4K −$2.46/SF
NOI
$12.6K $5.73/SF
Area
Wapello County, IA
Vacancy
9.00%
Lease Rate
$9.00 /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%
$252,260
Cap Rate 7%
$180,186
Cap Rate 9%
$140,144
Alternative Uses
Best Use
Mixed Use
$311.1K
$272.3K – $363.0K
NOI $21,780 @ 7.0% cap · market cap 13.20%
Second Best
Office B
$292.9K
$256.3K – $341.8K
NOI $20,506 @ 7.0% cap · market cap 12.43%
Theoretical Best
Office A
$481.2K
$421.1K – $561.4K
NOI $33,686 @ 7.0% cap · market cap 20.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
333
Businesses Nearby
Explore this area
Business Placement
Demographics for 52501, IA
30,313
Population
13,654
Households
2.2
Avg Household Size
38
Median Age
20%
College-Educated
87%
High-School Grad
225.3 sq mi
ZIP Area
135
Density / Sq Mi
$59,091
Median Household Income
$40,173
Median Earnings
$955
Median Rent
$109,600
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use configuration includes apartments, office areas, and a kitchenette within one commercial property.
Where is this mixed-use property located?
The property is located at 402 Richmond Ave Ottumwa, IA.
What is the asking price?
The asking price for this property is $165,000.
What are key features of this property?
This property features: Three‑unit mixed‑use building at 402 Richmond Ave, Ottumwa, IA; 2,200 SF property with residential and commercial components; Upper‑level 2 bedroom apartment is currently occupied
