Renovated Duplex With Private
New
For Sale
$269,000
407 Hotwater Road, Soddy Daisy, TN 37379
Two one-bedroom units offer separate laundry hookups, private outdoor space, and an established tenant in one residence.
Property Size1,050 SF
Lot Size0.50 Acres
Days on Market6
Property Features for 407 Hotwater Road
General Information
Standard status
Active
Size
1,050 SF
Lot size
0.50 Acres
Property subtype
Duplex
Units
Unit Mix
2 x 1BR/1BA
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$1,113
Building Details
Building Size
1,050 SF
Year Built
2005
Listing Agency:
EXP Realty LLC
Listed By:
Bradon Doctor · License #355832
(423) 710-0239
Source:
Gracefrankgroup
Added: Aug 28
Changed: Sep 1
Last Checked: Sep 1 at 10:05PM
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 EXP Realty LLC
Investment Insights
Based on property information with market context.
Built in 2005, this duplex contains two separate residences, each with one bedroom, one bathroom, a spacious living area, and an open kitchen arrangement. Both units include individual laundry hookups and private rear decks. Side A has undergone a complete renovation and is positioned for a new tenant or owner occupant, while Side B is occupied by a long-term renter.
The property sits on a flat half-acre lot at 407 Hotwater Road in Soddy Daisy, Tennessee, outside the floodplain. The source information also identifies potential for an ADU or an additional duplex, subject to independent feasibility and permitting review.
The property sits on a flat half-acre lot at 407 Hotwater Road in Soddy Daisy, Tennessee, outside the floodplain. The source information also identifies potential for an ADU or an additional duplex, subject to independent feasibility and permitting review.
Key Highlights
- Two‑unit duplex with one bedroom and one bathroom per side
- Side A completely renovated and ready for a tenant or owner occupant
- Side B occupied by a long‑term renter
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
$8,821
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
3.28%
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%
$176,420
$176.4K
Cap Rate 7%
$126,014
$126.0K
Cap Rate 9%
$98,011
$98.0K
Market Conditions
NOI Build-Up for 1,050 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 $13.56/SF
− Vacancy
−$1.6K −$1.56/SF
EGI
$12.6K $12.00/SF
− OpEx
−$3.8K −$3.60/SF
NOI
$8.8K $8.40/SF
Area
Hamilton County, TN
Vacancy
11.49%
Lease Rate
$13.56 /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%
$176,420
Cap Rate 7%
$126,014
Cap Rate 9%
$98,011
Alternative Uses
Best Use
Multifamily LT 5
$126.0K
$110.3K – $147.0K
NOI $8,821 @ 7.0% cap · market cap 3.28%
Second Best
Apartment 5plus
$115.7K
$101.3K – $135.0K
NOI $8,102 @ 7.0% cap · market cap 3.01%
Theoretical Best
Healthcare Medical
$174.4K
$152.6K – $203.4K
NOI $12,205 @ 7.0% cap · market cap 4.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
63
Businesses Nearby
Explore this area
Business Placement
Demographics for 37379, TN
28,552
Population
12,089
Households
2.4
Avg Household Size
44
Median Age
26%
College-Educated
92%
High-School Grad
106.4 sq mi
ZIP Area
268
Density / Sq Mi
$85,525
Median Household Income
$44,662
Median Earnings
$988
Median Rent
$277,600
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 - Two one-bedroom units offer separate laundry hookups, private outdoor space, and an established tenant in one residence.
Where is this duplex located?
The property is located at 407 Hotwater Road Soddy Daisy, TN.
What is the asking price?
The asking price for this property is $269,000.
What are key features of this property?
This property features: Two‑unit duplex with one bedroom and one bathroom per side; Side A completely renovated and ready for a tenant or owner occupant; Side B occupied by a long‑term renter
