Duplex with Fenced
For Sale
$254,000
506 Hargraves Avenue, Chattanooga, TN 37411
Two-unit property with separate utility meters, central HVAC, and flexible rental or owner-occupant use.
Property Size1,378 SF
Days on Market53
Property Features for 506 Hargraves Avenue
General Information
Standard status
Active
Size
1,378 SF
Property subtype
Duplex
Taxes and HOA fees
Annual Taxes
$2,261
Building Details
Building Size
1,378 SF
Year Built
1950
Listing Agency:
Real Estate Partners Chattanooga LLC
(706) 273-9176
Listed By:
Candice Neal · License #365457
(706) 273-9176
Source:
Gracefrankgroup
Added: Jun 20
Changed: Aug 11
Last Checked: Aug 10 at 9:28AM
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 Real Estate Partners Chattanooga LLC
Investment Insights
Based on property information with market context.
This Chattanooga duplex contains two residential units, each arranged with 2 bedrooms, 1 bath, washer/dryer hookups, separate utility metering, and central HVAC. Improvements include several vinyl windows, carpet replaced in 2019, and ongoing replacement of the horizontal water supply and drain plumbing, estimated for completion in early August.
The property sits on a level lot along a quiet street and includes a shared fenced backyard. One tenant has occupied a unit since 2018, while the second lease expires in August, providing flexibility for continued leasing or owner occupancy in one unit. Showings are available during due diligence with an accepted purchase agreement or Letter of Intent, and tenants should not be disturbed.
The property sits on a level lot along a quiet street and includes a shared fenced backyard. One tenant has occupied a unit since 2018, while the second lease expires in August, providing flexibility for continued leasing or owner occupancy in one unit. Showings are available during due diligence with an accepted purchase agreement or Letter of Intent, and tenants should not be disturbed.
Key Highlights
- Two‑unit duplex with 2 bedrooms and 1 bath per unit
- Separate utility meters and central HVAC in both units
- Washer/dryer hookups provided in each unit
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
$13,529
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
5.33%
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%
$270,580
$270.6K
Cap Rate 7%
$193,271
$193.3K
Cap Rate 9%
$150,322
$150.3K
Market Conditions
NOI Build-Up for 1,378 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
$20.7K $15.00/SF
− Vacancy
−$1.3K −$0.98/SF
EGI
$19.3K $14.03/SF
− OpEx
−$5.8K −$4.21/SF
NOI
$13.5K $9.82/SF
Area
Chattanooga, TN
Vacancy
6.50%
Lease Rate
$15.00 /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%
$270,580
Cap Rate 7%
$193,271
Cap Rate 9%
$150,322
Alternative Uses
Best Use
Multifamily LT 5
$193.3K
$169.1K – $225.5K
NOI $13,529 @ 7.0% cap · market cap 5.33%
Second Best
Apartment 5plus
$173.4K
$151.8K – $202.3K
NOI $12,140 @ 7.0% cap · market cap 4.78%
Theoretical Best
Office A
$304.3K
$266.3K – $355.1K
NOI $21,304 @ 7.0% cap · market cap 8.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
175
Businesses Nearby
Explore this area
Business Placement
Demographics for 37411, TN
17,499
Population
8,807
Households
2
Avg Household Size
40
Median Age
29%
College-Educated
90%
High-School Grad
7.3 sq mi
ZIP Area
2,397
Density / Sq Mi
$50,180
Median Household Income
$34,045
Median Earnings
$1,031
Median Rent
$216,800
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-unit property with separate utility meters, central HVAC, and flexible rental or owner-occupant use.
Where is this duplex located?
The property is located at 506 Hargraves Avenue Chattanooga, TN.
What is the asking price?
The asking price for this property is $254,000.
What are key features of this property?
This property features: Two‑unit duplex with 2 bedrooms and 1 bath per unit; Separate utility meters and central HVAC in both units; Washer/dryer hookups provided in each unit
