Two-Bedroom
For Sale
$314,900
406 N 408 5th St, Mebane, NC 27302
Income-producing residential property with matching two-bedroom, one-bathroom units and recent improvements to major building components.
Property Size1,622 SF
Price / SF$194.14
Days on Market60
Property Features for 406 N 408 5th St
General Information
Standard status
Active
Size
1,622 SF
Property subtype
Multi-Family
Units
Unit Mix
2 x 2BR/1BA
Multifamily Units
2
Building Details
Year Built
1949
Listing Agency:
Stanley Real Estate Services
Listed By:
Rob Stanley
(980) 333-2625
Source:
Searchhomesinnorthcarolina
Added: Jul 13
Changed: Sep 9
Last Checked: Sep 9 at 11:33AM
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 Stanley Real Estate Services
Investment Insights
Based on property information with market context.
This duplex in Mebane, North Carolina, contains two residential units, each arranged with two bedrooms and one bathroom. Recent work includes HVAC and furnace replacements, flooring updates, roof repairs, and improvements to the front porch. These upgrades address several key building components while supporting continued rental use.
The property is located at 406 N 5th Street. The seller prefers a portfolio transaction but will consider selling the duplex individually. Tenant privacy is requested during marketing and showing activity.
The property is located at 406 N 5th Street. The seller prefers a portfolio transaction but will consider selling the duplex individually. Tenant privacy is requested during marketing and showing activity.
Key Highlights
- Two units, each with 2 bedrooms and 1 bathroom
- HVAC and furnace replacements completed
- Updated flooring in both units
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
$14,650
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
4.65%
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%
$293,000
$293.0K
Cap Rate 7%
$209,286
$209.3K
Cap Rate 9%
$162,778
$162.8K
Market Conditions
NOI Build-Up for 1,622 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
$22.4K $13.80/SF
− Vacancy
−$1.5K −$0.90/SF
EGI
$20.9K $12.90/SF
− OpEx
−$6.3K −$3.87/SF
NOI
$14.7K $9.03/SF
Area
Alamance County, NC
Vacancy
6.50%
Lease Rate
$13.80 /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%
$293,000
Cap Rate 7%
$209,286
Cap Rate 9%
$162,778
Alternative Uses
Best Use
Multifamily LT 5
$209.3K
$183.1K – $244.2K
NOI $14,650 @ 7.0% cap · market cap 4.65%
Second Best
Apartment 5plus
$184.0K
$161.0K – $214.7K
NOI $12,880 @ 7.0% cap · market cap 4.09%
Theoretical Best
Office A
$534.8K
$467.9K – $623.9K
NOI $37,434 @ 7.0% cap · market cap 11.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
500
Businesses Nearby
Explore this area
Business Placement
Demographics for 27302, NC
33,237
Population
14,997
Households
2.2
Avg Household Size
40
Median Age
34%
College-Educated
90%
High-School Grad
114.7 sq mi
ZIP Area
290
Density / Sq Mi
$81,875
Median Household Income
$45,502
Median Earnings
$1,130
Median Rent
$275,400
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Duplex - Income-producing residential property with matching two-bedroom, one-bathroom units and recent improvements to major building components.
Where is this duplex located?
The property is located at 406 N 408 5th St Mebane, NC.
What is the asking price?
The asking price for this property is $314,900.
What are key features of this property?
This property features: Two units, each with 2 bedrooms and 1 bathroom; HVAC and furnace replacements completed; Updated flooring in both units
