Two-Unit Duplex with Off-Street
New
For Sale
$110,000
507 E 7th St, Lexington, KY 40505
Two one-bedroom residences share a tiled interior, metal roof, and parking area with access serving the neighboring property.
Property Size696 SF
Price / SF$158.05
Days on Market4
Property Features for 507 E 7th St
General Information
Standard status
Active
Size
696 SF
Property subtype
Multi-Family
Additional Details
Asking Price
$220,000
Building Details
Year Built
1929
Buildings
2
Listing Agency:
Bluegrass Sotheby's International Realty
Listed By:
Elizabeth L Herrington · License #245796
(859) 699-2655
Source:
Centralkentuckyhouses
Added: Aug 30
Changed: Sep 1
Last Checked: Sep 1 at 8:56PM
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 Bluegrass Sotheby's International Realty
Investment Insights
Based on property information with market context.
This duplex at 507 E. 7th Street contains two separate residences beneath one roof. Each unit includes one bedroom, one full bathroom, a kitchen, and a combined living area. Tile flooring extends throughout the property, and the building is topped with a metal roof. Constructed in 1929, the property provides a compact two-unit configuration with off-street parking.
The driveway and parking area behind 507 E. 7th Street also provide parking access for 511 E. 7th Street. The two properties are being offered together and are not currently available for separate purchase.
The driveway and parking area behind 507 E. 7th Street also provide parking access for 511 E. 7th Street. The two properties are being offered together and are not currently available for separate purchase.
Key Highlights
- Two separate residences under one roof
- Each unit has 1 bedroom, 1 full bath, kitchen, and combined living area
- Tile flooring throughout the duplex
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
$5,782
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
5.26%
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%
$115,640
$115.6K
Cap Rate 7%
$82,600
$82.6K
Cap Rate 9%
$64,244
$64.2K
Market Conditions
NOI Build-Up for 696 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
$8.7K $12.48/SF
− Vacancy
−$426 −$0.61/SF
EGI
$8.3K $11.87/SF
− OpEx
−$2.5K −$3.56/SF
NOI
$5.8K $8.31/SF
Area
Lexington, KY
Vacancy
4.90%
Lease Rate
$12.48 /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%
$115,640
Cap Rate 7%
$82,600
Cap Rate 9%
$64,244
Alternative Uses
Best Use
Multifamily LT 5
$82.6K
$72.3K – $96.4K
NOI $5,782 @ 7.0% cap · market cap 5.26%
Second Best
Apartment 5plus
$74.9K
$65.6K – $87.4K
NOI $5,246 @ 7.0% cap · market cap 4.77%
Theoretical Best
Office A
$145.0K
$126.9K – $169.2K
NOI $10,151 @ 7.0% cap · market cap 9.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
699
Businesses Nearby
Explore this area
Business Placement
Demographics for 40505, KY
26,278
Population
12,026
Households
2.2
Avg Household Size
39
Median Age
23%
College-Educated
86%
High-School Grad
8.0 sq mi
ZIP Area
3,285
Density / Sq Mi
$58,922
Median Household Income
$33,517
Median Earnings
$914
Median Rent
$166,300
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 residences share a tiled interior, metal roof, and parking area with access serving the neighboring property.
Where is this duplex located?
The property is located at 507 E 7th St Lexington, KY.
What is the asking price?
The asking price for this property is $110,000.
What are key features of this property?
This property features: Two separate residences under one roof; Each unit has 1 bedroom, 1 full bath, kitchen, and combined living area; Tile flooring throughout the duplex
