Three-Bedroom
For Sale
$235,000
505 3rd Ave, Conway, AR 72032
Tenant-occupied residential income property with matching layouts on both sides.
Property Size2,176 SF
Price / SF$107
Days on Market19
Property Features for 505 3rd Ave
General Information
Standard status
Active
Size
2,176 SF
Property subtype
Residential Income
Additional Details
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$2,320
Listing Agency:
Nelson & Associates
(501) 329-1000
Listed By:
Yolanda Hervey
(501) 951-0057
Source:
Exprealty
Added: Sep 2
Changed: Sep 16
Last Checked: Sep 19 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 Nelson & Associates
Investment Insights
Based on property information with market context.
This duplex contains 2,176 square feet with two residential sides, each offering three bedrooms and two bathrooms. Both units are tenant-occupied, providing an established rental configuration for an owner seeking a residential income property.
The property is located near Downtown, a community center, shopping, restaurants, and everyday services. Its Conway, Arkansas address also places it within convenient reach of surrounding areas.
The property is located near Downtown, a community center, shopping, restaurants, and everyday services. Its Conway, Arkansas address also places it within convenient reach of surrounding areas.
Key Highlights
- Duplex totals 2,176 square feet
- Each side includes 3 bedrooms and 2 bathrooms
- Both units are tenant‑occupied
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
$14,637
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
6.23%
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%
$292,740
$292.7K
Cap Rate 7%
$209,100
$209.1K
Cap Rate 9%
$162,633
$162.6K
Market Conditions
NOI Build-Up for 2,176 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
$22.2K $10.20/SF
− Vacancy
−$1.3K −$0.59/SF
EGI
$20.9K $9.61/SF
− OpEx
−$6.3K −$2.88/SF
NOI
$14.6K $6.73/SF
Area
Faulkner County, AR
Vacancy
5.79%
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%
$292,740
Cap Rate 7%
$209,100
Cap Rate 9%
$162,633
Alternative Uses
Best Use
Multifamily LT 5
$209.1K
$183.0K – $244.0K
NOI $14,637 @ 7.0% cap · market cap 6.23%
Second Best
Apartment 5plus
$186.9K
$163.5K – $218.0K
NOI $13,081 @ 7.0% cap · market cap 5.57%
Theoretical Best
Office A
$496.3K
$434.3K – $579.1K
NOI $34,743 @ 7.0% cap · market cap 14.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
869
Businesses Nearby
Explore this area
Business Placement
Demographics for 72032, AR
34,316
Population
14,255
Households
2.4
Avg Household Size
35
Median Age
27%
College-Educated
94%
High-School Grad
114.5 sq mi
ZIP Area
300
Density / Sq Mi
$61,452
Median Household Income
$36,877
Median Earnings
$976
Median Rent
$183,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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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 - Tenant-occupied residential income property with matching layouts on both sides.
Where is this duplex located?
The property is located at 505 3rd Ave Conway, AR.
What is the asking price?
The asking price for this property is $235,000.
What are key features of this property?
This property features: Duplex totals 2,176 square feet; Each side includes 3 bedrooms and 2 bathrooms; Both units are tenant‑occupied
