Tenant-Occupied
For Sale
$440,000
406 & 408 E Avenue Q7, Palmdale, CA 93550
Two leased residences offer an established occupancy profile with tenants covering utilities apart from water and trash.
Property Size1,360 SF
Price / SF$323.53
Days on Market31
Property Features for 406 & 408 E Avenue Q7
General Information
Standard status
Active
Size
1,360 SF
Property subtype
Multi-Family
Occupancy
100%
Financials
Asking Price
$440,000
Cap Rate
5.9%
Gross Income
$34,200
Gross Rent Multiplier
12.87
Units
Unit Mix
2 x 2BR/1BA
Multifamily Units
2
Building Details
Year Built
1957
Buildings
1
Tenancy
Multi
Listing Agency:
Ethos International Real Estate
Listed By:
Martin J Hernandez · License #02072549
(909) 212-0329
Source:
Jessicadixonrealty
Added: Aug 3
Changed: Aug 31
Last Checked: Sep 1 at 9:12PM
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 Ethos International Real Estate
Investment Insights
Based on property information with market context.
This 1,360-square-foot duplex contains two residential units, each configured with two bedrooms and one bathroom. Both units are occupied, providing an established rental setup, while residents cover utilities other than water and trash. The property was built in 1957 and reports a 12.87 GRM and an approximate 5.9% cap rate.
Located at 406 & 408 E Avenue Q7 in Palmdale, the property is near shopping, schools, and commuter routes. A neighboring duplex at 410-412 E Ave Q-7 is also available for purchase, offering the option to consider both properties together. Tenant privacy applies, with drive-by review requested and interior access available after an accepted offer.
Located at 406 & 408 E Avenue Q7 in Palmdale, the property is near shopping, schools, and commuter routes. A neighboring duplex at 410-412 E Ave Q-7 is also available for purchase, offering the option to consider both properties together. Tenant privacy applies, with drive-by review requested and interior access available after an accepted offer.
Key Highlights
- Two 2‑bedroom, 1‑bath units in one duplex
- Both units are tenant occupied
- 1,360 SF property built in 1957
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
$22,751
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
5.17%
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%
$455,020
$455.0K
Cap Rate 7%
$325,014
$325.0K
Cap Rate 9%
$252,789
$252.8K
Market Conditions
NOI Build-Up for 1,360 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
$34.8K $25.56/SF
− Vacancy
−$2.3K −$1.66/SF
EGI
$32.5K $23.90/SF
− OpEx
−$9.8K −$7.17/SF
NOI
$22.8K $16.73/SF
Area
Palmdale, CA
Vacancy
6.50%
Lease Rate
$25.56 /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%
$455,020
Cap Rate 7%
$325,014
Cap Rate 9%
$252,789
Alternative Uses
Best Use
Multifamily LT 5
$325.0K
$284.4K – $379.2K
NOI $22,751 @ 7.0% cap · market cap 5.17%
Second Best
Apartment 5plus
$302.0K
$264.2K – $352.3K
NOI $21,138 @ 7.0% cap · market cap 4.80%
Theoretical Best
Office A
$574.2K
$502.5K – $670.0K
NOI $40,197 @ 7.0% cap · market cap 9.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,125
Businesses Nearby
Explore this area
Business Placement
Demographics for 93550, CA
82,379
Population
23,965
Households
3.4
Avg Household Size
31
Median Age
10%
College-Educated
71%
High-School Grad
259.3 sq mi
ZIP Area
318
Density / Sq Mi
$63,811
Median Household Income
$34,287
Median Earnings
$1,573
Median Rent
$378,700
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Two leased residences offer an established occupancy profile with tenants covering utilities apart from water and trash.
Where is this duplex located?
The property is located at 406 & 408 E Avenue Q7 Palmdale, CA.
What is the asking price?
The asking price for this property is $440,000.
What are key features of this property?
This property features: Two 2‑bedroom, 1‑bath units in one duplex; Both units are tenant occupied; 1,360 SF property built in 1957
