Fully Occupied Duplex
For Sale
$440,000
406 & 408 E Avenue Q7, Palmdale, CA 93550
Residential Income, Palmdale, CA
Property Size1,360 SF
Lot Size0.14 Acres
Price / SF$323.53
Days on Market48
Property Features for 406 & 408 E Avenue Q7
General Information
Property type
Residential Multi Family
Property subtype
Other
Zoning
PDR3
Bedrooms
4
Rooms
Bedroom 2, Bedroom 1, Bedroom 3, Bedroom 4
Directions
From Palmdale Blvd., head south on 4th St. E, turn left on E Ave Q-7, and the property will be on the left.
Subdivision
09 - Palm Div to 80th E
Standard status
Active
APN
3008-025-019
Size
1,360 SF
Lot size
0.14 Acres
Utilities
Cooling system
Evaporative Cooling
Building Details
Year built
1957
Number of units
2
Building materials
Stucco, Shingle Siding
Listing Agency:
Luxury Collective
(424) 395-4841
Listed By:
Martin J Hernandez · License #02072549
(661) 874-3245
Added: Jul 13
Changed: Aug 26
Last Checked: Aug 29 at 7:06AM
MLS# 26005437
Copyright © 2026 Greater Antelope Valley Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This duplex contains two tenant-occupied units, each configured with two bedrooms and one bathroom. The property offers 1,360 square feet on a 0.14-acre lot and was built in 1957. Stucco and shingle siding complement the exterior, while evaporative cooling serves the building. Tenants pay all utilities other than water and trash.
The property is zoned PDR3 and is located at 406 & 408 E Avenue Q7 in Palmdale. Shopping, schools, and commuter routes are identified in the surrounding area. The neighboring duplex at 410-412 E Ave Q-7 is also available for purchase. Showings are limited to drive-by viewing, with interior inspections available after an accepted offer.
The property is zoned PDR3 and is located at 406 & 408 E Avenue Q7 in Palmdale. Shopping, schools, and commuter routes are identified in the surrounding area. The neighboring duplex at 410-412 E Ave Q-7 is also available for purchase. Showings are limited to drive-by viewing, with interior inspections available after an accepted offer.
Key Highlights
- Two tenant‑occupied 2‑bedroom, 1‑bath units
- 1,360 square feet on a 0.14‑acre lot
- Approximately 5.9% cap rate and 12.87 GRM
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
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Duplex - Two tenant-occupied units offer an established residential income configuration in Palmdale.
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 tenant‑occupied 2‑bedroom, 1‑bath units; 1,360 square feet on a 0.14‑acre lot; Approximately 5.9% cap rate and 12.87 GRM
