Gutted Duplex
New
For Sale
$155,000
540 Gadd Road, Hixson, TN 37343
Residential Income, Hixson, TN
Property Size1,728 SF
Price / SF$89.70
Days on Market2
Property Features for 540 Gadd Road
General Information
Property type
Residential Multi Family
Property subtype
Duplex
Bedrooms
4
Bathrooms
2
Full bathrooms
2
Rooms
Bedroom 1, Bedroom 3, Bathroom 2, Bedroom 2, Bedroom 4, Bathroom 1
Parking features
Off Street
Subdivision
Houston Hixson Ridge
Lot features
Level
Elementary school
Alpine Crest Elementary
Middle school
Red Bank Middle
High school
Red Bank High School
Directions
153 N left on Gadd Rd Building on Left
Standard status
Active
APN
099n D 014
Size
1,728 SF
Taxes and HOA fees
Tax Description
Houston Hixson Ridge Tract Lot 14 P B111 Pg712
Tax Annual Amount
1335
Legal Description
Houston Hixson Ridge Tract Lot 14 P B111 Pg712
Utilities
Sewer type
Septic Tank
Water source
Public
Building Details
Year built
1950
Floors in Building
1
Number of units
2
Building materials
Block
Roof type
Shingle
Listing Agency:
SquareOne Realty, LLC
(423) 551-3279
Listed By:
John Kelly · License #278600
(423) 618-5903
Added: Aug 29
Changed: Aug 30
Last Checked: Aug 30 at 4:06AM
MLS# 1541780
Copyright © 2026 Greater Chattanooga Association of REALTORS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This duplex contains 1,728 square feet and has been gutted internally. The layout includes four bedrooms and two bathrooms, with block construction, a shingle roof, and off-street parking. The structure was built in 1950.
Located at 540 Gadd Road in Hixson, Tennessee, the property is served by public water and a septic tank. The existing configuration and basic building systems provide a clear factual overview for evaluation of the property in its current condition.
Located at 540 Gadd Road in Hixson, Tennessee, the property is served by public water and a septic tank. The existing configuration and basic building systems provide a clear factual overview for evaluation of the property in its current condition.
Key Highlights
- Duplex with 1,728 square feet
- Interior has been gutted
- Four bedrooms and two bathrooms
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
Property Profile
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
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 - Block-built duplex with off-street parking, public water service, and a septic tank system.
Where is this duplex located?
The property is located at 540 Gadd Road 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 with 1,728 square feet; Interior has been gutted; Four bedrooms and two bathrooms
