Two-Level Duplex With Rental
For Sale
$205,000
510 S Jefferson Way, Indianola, IA 50125
Converted two-unit residence with separate living arrangements and an established month-to-month tenancy structure.
Property Size2,095 SF
Price / SF$97.85
Days on Market27
Property Features for 510 S Jefferson Way
General Information
Standard status
Active
Size
2,095 SF
Property subtype
Residential Income
Taxes and HOA fees
Annual Taxes
$2,722
Listing Agency:
ITown Real Estate, LLC
(515) 962-5765
Listed By:
Terry Pauling
(515) 962-5765
Source:
Exprealty
Added: Jul 14
Changed: Aug 9
Last Checked: Aug 9 at 7:36AM
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 ITown Real Estate, LLC
Investment Insights
Based on property information with market context.
Located at 510 S Jefferson Way in Indianola, IA, this two-unit residential property was converted from a single home several years ago. The main-level residence includes 3 bedrooms, 1-1/2 baths, and dedicated laundry, while the upper-level apartment provides 1 bedroom and 1 bath. The configuration supports separate occupancy across the two levels.
Long-term occupants are currently leasing month to month, and tenants pay their own utilities. The rental certificate remains valid through June 2029. A new roof was installed in 2016. Showings require 24 hours’ notice, with proof of funds and/or a pre-approval letter required before access is arranged.
Long-term occupants are currently leasing month to month, and tenants pay their own utilities. The rental certificate remains valid through June 2029. A new roof was installed in 2016. Showings require 24 hours’ notice, with proof of funds and/or a pre-approval letter required before access is arranged.
Key Highlights
- 3‑bedroom, 1‑1/2‑bath main‑level unit
- 1‑bedroom, 1‑bath upper‑level apartment
- Property rental certificate valid until June 2029
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
$17,584
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
8.58%
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%
$351,680
$351.7K
Cap Rate 7%
$251,200
$251.2K
Cap Rate 9%
$195,378
$195.4K
Market Conditions
NOI Build-Up for 2,095 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
$33.9K $16.20/SF
− Vacancy
−$2.0K −$0.94/SF
EGI
$32.0K $15.26/SF
− OpEx
−$14.4K −$6.87/SF
NOI
$17.6K $8.39/SF
Area
Warren County, IA
Vacancy
5.80%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
45.00%
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%
$351,680
Cap Rate 7%
$251,200
Cap Rate 9%
$195,378
Alternative Uses
Best Use
Multifamily LT 5
$270.3K
$236.5K – $315.4K
NOI $18,922 @ 7.0% cap · market cap 9.23%
Second Best
Apartment 5plus
$251.2K
$219.8K – $293.1K
NOI $17,584 @ 7.0% cap · market cap 8.58%
Theoretical Best
Flex RnD
$2.02M
$1.76M – $2.35M
NOI $141,170 @ 7.0% cap · market cap 68.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
25
Businesses Nearby
Explore this area
Business Placement
Demographics for 50125, IA
20,906
Population
8,039
Households
2.6
Avg Household Size
39
Median Age
34%
College-Educated
97%
High-School Grad
162.4 sq mi
ZIP Area
129
Density / Sq Mi
$86,463
Median Household Income
$42,822
Median Earnings
$975
Median Rent
$248,700
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Converted two-unit residence with separate living arrangements and an established month-to-month tenancy structure.
Where is this duplex located?
The property is located at 510 S Jefferson Way Indianola, IA.
What is the asking price?
The asking price for this property is $205,000.
What are key features of this property?
This property features: 3‑bedroom, 1‑1/2‑bath main‑level unit; 1‑bedroom, 1‑bath upper‑level apartment; Property rental certificate valid until June 2029
