Updated Two-Story
For Sale
$154,000
Pending
412 S 2nd Ave E, Newton, IA 50208
Flexible income property with separate entrances, dual metering, and improvements suited to rental or owner-occupied use.
Property Size1,908 SF
Days on Market31
Property Features for 412 S 2nd Ave E
General Information
Standard status
Pending
Size
1,908 SF
Property subtype
Multi-Family
Additional Details
Cap Rate
10.6%
Multifamily Units
2
Building Details
Year Built
1930
Buildings
1
Stories
2
Listing Agency:
RE/MAX Concepts
(515) 276-2872
Listed By:
Jake Jenkins · License #S69857000
Source:
Desmoineshomesforsale
Added: Aug 1
Changed: Aug 30
Last Checked: Aug 30 at 6:06PM
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 RE/MAX Concepts
Investment Insights
Based on property information with market context.
Built in 1930, this 1,908-square-foot duplex in Newton, Iowa, has two levels, separate private entrances, and a layout that can function as either two rental units or a four-bedroom single-family residence. The upper apartment has been fully remodeled with contemporary finishes, black appliances, and vinyl plank flooring. The main floor includes a kitchen, while laundry hookups are provided on both levels. A newer Lennox furnace serves the property, and separate gas and water meters support independent unit operation.
Exterior work includes a roof installed in 2023 and siding completed in 2024. Rear alley access adds convenience, and the property is located near downtown. The offering reflects a 10.6% cap rate and provides a combination of updated components and flexible residential configuration.
Exterior work includes a roof installed in 2023 and siding completed in 2024. Rear alley access adds convenience, and the property is located near downtown. The offering reflects a 10.6% cap rate and provides a combination of updated components and flexible residential configuration.
Key Highlights
- 1,908 SF two‑story duplex built in 1930
- 10.6% cap rate
- Roof installed in 2023 and siding completed in 2024
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
$12,498
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
8.12%
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%
$249,960
$250.0K
Cap Rate 7%
$178,543
$178.5K
Cap Rate 9%
$138,867
$138.9K
Market Conditions
NOI Build-Up for 1,908 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
$19.5K $10.20/SF
− Vacancy
−$1.6K −$0.84/SF
EGI
$17.9K $9.36/SF
− OpEx
−$5.4K −$2.81/SF
NOI
$12.5K $6.55/SF
Area
Jasper County, IA
Vacancy
8.26%
Lease Rate
$10.20 /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%
$249,960
Cap Rate 7%
$178,543
Cap Rate 9%
$138,867
Alternative Uses
Best Use
Multifamily LT 5
$178.5K
$156.2K – $208.3K
NOI $12,498 @ 7.0% cap · market cap 8.12%
Second Best
Apartment 5plus
$164.2K
$143.7K – $191.6K
NOI $11,497 @ 7.0% cap · market cap 7.47%
Theoretical Best
Flex RnD
$1.84M
$1.61M – $2.14M
NOI $128,569 @ 7.0% cap · market cap 83.49%
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
868
Businesses Nearby
Explore this area
Business Placement
Demographics for 50208, IA
20,918
Population
8,919
Households
2.3
Avg Household Size
42
Median Age
17%
College-Educated
91%
High-School Grad
158.5 sq mi
ZIP Area
132
Density / Sq Mi
$61,064
Median Household Income
$37,490
Median Earnings
$830
Median Rent
$161,900
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest 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 - Flexible income property with separate entrances, dual metering, and improvements suited to rental or owner-occupied use.
Where is this duplex located?
The property is located at 412 S 2nd Ave E Newton, IA.
What is the asking price?
The asking price for this property is $154,000.
What are key features of this property?
This property features: 1,908 SF two‑story duplex built in 1930; 10.6% cap rate; Roof installed in 2023 and siding completed in 2024
