Gutted Duplex
For Sale
$155,000
540 Gadd Rd, Hixson, TN 37343
Gutted duplex offered in its current condition for a renovation-focused project.
Property Size1,728 SF
Price / SF$89.70
Days on Market26
Property Features for 540 Gadd Rd
General Information
Standard status
Active
Size
1,728 SF
Property subtype
Residential Income
Property Condition
Severity
Major Repairs Needed
Evidence
gutted
Additional Details
Multifamily Units
2
Building Details
Year Built
1950
Buildings
1
Listing Agency:
SquareOne Realty
Listed By:
John Kelly · License #278600
(423) 618-5903
Source:
Chattanoogaareahomesforsale
Added: Aug 18
Changed: Sep 11
Last Checked: Sep 12 at 10:52AM
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 SquareOne Realty
Investment Insights
Based on property information with market context.
Built in 1950, this duplex contains 1,728 square feet and has been gutted. The property is located at 540 Gadd Rd in Hixson, Tennessee, with the existing duplex configuration providing the basis for redevelopment or renovation planning.
Key Highlights
- Duplex property with a gutted interior
- 1,728 square feet of building area
- Built in 1950
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
$13,333
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
8.60%
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%
$266,660
$266.7K
Cap Rate 7%
$190,471
$190.5K
Cap Rate 9%
$148,144
$148.1K
Market Conditions
NOI Build-Up for 1,728 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
$27.6K $15.96/SF
− Vacancy
−$3.3K −$1.93/SF
EGI
$24.2K $14.03/SF
− OpEx
−$10.9K −$6.31/SF
NOI
$13.3K $7.72/SF
Area
Hamilton County, TN
Vacancy
12.10%
Lease Rate
$15.96 /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%
$266,660
Cap Rate 7%
$190,471
Cap Rate 9%
$148,144
Alternative Uses
Best Use
Multifamily LT 5
$207.4K
$181.5K – $242.0K
NOI $14,518 @ 7.0% cap · market cap 9.37%
Second Best
Apartment 5plus
$190.5K
$166.7K – $222.2K
NOI $13,333 @ 7.0% cap · market cap 8.60%
Theoretical Best
Healthcare Medical
$287.0K
$251.1K – $334.8K
NOI $20,087 @ 7.0% cap · market cap 12.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
73
Businesses Nearby
Explore this area
Business Placement
Demographics for 37343, TN
43,626
Population
19,031
Households
2.3
Avg Household Size
42
Median Age
38%
College-Educated
93%
High-School Grad
42.1 sq mi
ZIP Area
1,036
Density / Sq Mi
$79,177
Median Household Income
$45,151
Median Earnings
$1,258
Median Rent
$275,300
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
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 - Gutted duplex offered in its current condition for a renovation-focused project.
Where is this duplex located?
The property is located at 540 Gadd Rd Hixson, TN.
What is the asking price?
The asking price for this property is $155,000.
What are key features of this property?
This property features: Duplex property with a gutted interior; 1,728 square feet of building area; Built in 1950
