Duplex With Detached
For Sale
$299,000
407 McDowell Avenue, Hagerstown, MD 21740
Two residential units and a separately rentable garage support diversified occupancy within a manageable income property.
Property Size2,588 SF
Price / SF$115.53
Days on Market208
Property Features for 407 McDowell Avenue
General Information
Standard status
Active
Size
2,588 SF
Property subtype
Multi-Family / Fee Simple
Zoning
RMED
Additional Details
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$2,374
Amenities
No
Kitchen - Table Space
No Pool
Building Details
Year Built
1910
Tenancy
Multi
Listing Agency:
RG Realty, Inc.
(301) 991-0207
Listed By:
Roberto G. Gonzalez · License #598229
(301) 991-0207
Source:
Compass
Added: Feb 4
Changed: Aug 30
Last Checked: Aug 30 at 1:58PM
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 RG Realty, Inc.
Investment Insights
Based on property information with market context.
This 2,588-square-foot duplex, built in 1910, contains two residential units plus a detached garage that is rented separately. Both homes are occupied by established tenants, and the second residential unit operates on a month-to-month arrangement. The garage tenant has remained in place since 2018, while the original lease for the other residential unit began in 2019.
The property is located in Hagerstown, Maryland, within city limits and Washington County. RMED zoning is in place. Maryland’s Tenants’ Bill of Rights requires tenants to receive 30 days to exercise a right of first refusal after an offer is accepted.
The property is located in Hagerstown, Maryland, within city limits and Washington County. RMED zoning is in place. Maryland’s Tenants’ Bill of Rights requires tenants to receive 30 days to exercise a right of first refusal after an offer is accepted.
Key Highlights
- 2,588‑square‑foot duplex with two residential units
- Detached garage provides a separate rental component
- Built in 1910
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
$27,147
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
9.08%
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%
$542,940
$542.9K
Cap Rate 7%
$387,814
$387.8K
Cap Rate 9%
$301,633
$301.6K
Market Conditions
NOI Build-Up for 2,588 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
$41.9K $16.20/SF
− Vacancy
−$3.1K −$1.22/SF
EGI
$38.8K $14.99/SF
− OpEx
−$11.6K −$4.50/SF
NOI
$27.1K $10.49/SF
Area
Washington County, MD
Vacancy
7.50%
Lease Rate
$16.20 /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%
$542,940
Cap Rate 7%
$387,814
Cap Rate 9%
$301,633
Alternative Uses
Best Use
Multifamily LT 5
$387.8K
$339.3K – $452.5K
NOI $27,147 @ 7.0% cap · market cap 9.08%
Second Best
Apartment 5plus
$348.0K
$304.5K – $406.0K
NOI $24,357 @ 7.0% cap · market cap 8.15%
Theoretical Best
Office A
$574.1K
$502.3K – $669.8K
NOI $40,185 @ 7.0% cap · market cap 13.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
795
Businesses Nearby
Explore this area
Business Placement
Demographics for 21740, MD
65,619
Population
27,002
Households
2.4
Avg Household Size
39
Median Age
20%
College-Educated
86%
High-School Grad
70.9 sq mi
ZIP Area
926
Density / Sq Mi
$59,410
Median Household Income
$42,159
Median Earnings
$1,031
Median Rent
$241,600
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 residential units and a separately rentable garage support diversified occupancy within a manageable income property.
Where is this duplex located?
The property is located at 407 McDowell Avenue Hagerstown, MD.
What is the asking price?
The asking price for this property is $299,000.
What are key features of this property?
This property features: 2,588‑square‑foot duplex with two residential units; Detached garage provides a separate rental component; Built in 1910
