Updated Duplex with Morro Rock
For Sale
$799,900
540 Avalon Street, Morro Bay, CA 93442
Each level includes a kitchen, bedroom, and full bathroom, plus a bonus room with its own private bath.
Property Size1,211 SF
Price / SF$660.53
Days on Market209
Property Features for 540 Avalon Street
General Information
Standard status
Active
Size
1,211 SF
Property subtype
Multi Family / Duplex
Lease Type
Net
Units
Unit Mix
2 x 1BR/1BA
Multifamily Units
2
Amenities
Central Heat/Cool
Composition
Wood
Concrete Perimeter
Building Details
Year Built
1949
Buildings
1
Listing Agency:
Universal Lending & Realty Inc.
(559) 903-0743
Listed By:
Roger Guizar · License #01872506
(559) 903-0743
Source:
Compass
Added: Feb 2
Changed: Aug 29
Last Checked: Aug 29 at 8:03PM
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 Universal Lending & Realty Inc.
Investment Insights
Based on property information with market context.
Located at 540 Avalon Street in Morro Bay, this 1,211-square-foot duplex offers a matching layout on each level, with a kitchen, one full bedroom, and one full bathroom. A small bonus room with a separate private bathroom adds flexible space for an office, game room, or hobby room.
Interior and exterior updates include new flooring, paint, and fixtures. The lower-level kitchen features granite countertops and a new stove, while central heating and cooling support year-round comfort. The property also has partial views of Morro Rock and was built in 1949.
Interior and exterior updates include new flooring, paint, and fixtures. The lower-level kitchen features granite countertops and a new stove, while central heating and cooling support year-round comfort. The property also has partial views of Morro Rock and was built in 1949.
Key Highlights
- 1,211‑square‑foot duplex at 540 Avalon Street, Morro Bay, CA 93442
- Each level has a kitchen, 1 full bedroom, and 1 full bathroom
- Small bonus room with its own private bathroom
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
$25,322
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
3.17%
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%
$506,440
$506.4K
Cap Rate 7%
$361,743
$361.7K
Cap Rate 9%
$281,356
$281.4K
Market Conditions
NOI Build-Up for 1,211 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
$37.1K $30.60/SF
− Vacancy
−$882 −$0.73/SF
EGI
$36.2K $29.87/SF
− OpEx
−$10.9K −$8.96/SF
NOI
$25.3K $20.91/SF
Area
San Luis Obispo County, CA
Vacancy
2.38%
Lease Rate
$30.60 /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%
$506,440
Cap Rate 7%
$361,743
Cap Rate 9%
$281,356
Alternative Uses
Best Use
Multifamily LT 5
$361.7K
$316.5K – $422.0K
NOI $25,322 @ 7.0% cap · market cap 3.17%
Second Best
Apartment 5plus
$334.0K
$292.2K – $389.6K
NOI $23,378 @ 7.0% cap · market cap 2.92%
Theoretical Best
Healthcare Medical
$476.3K
$416.7K – $555.7K
NOI $33,339 @ 7.0% cap · market cap 4.17%
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
226
Businesses Nearby
Explore this area
Business Placement
Demographics for 93442, CA
11,390
Population
6,537
Households
1.7
Avg Household Size
54
Median Age
45%
College-Educated
93%
High-School Grad
44.5 sq mi
ZIP Area
256
Density / Sq Mi
$92,163
Median Household Income
$50,651
Median Earnings
$1,815
Median Rent
$870,600
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Each level includes a kitchen, bedroom, and full bathroom, plus a bonus room with its own private bath.
Where is this duplex located?
The property is located at 540 Avalon Street Morro Bay, CA.
What is the asking price?
The asking price for this property is $799,900.
What are key features of this property?
This property features: 1,211‑square‑foot duplex at 540 Avalon Street, Morro Bay, CA 93442; Each level has a kitchen, 1 full bedroom, and 1 full bathroom; Small bonus room with its own private bathroom
