Updated Residential Income
For Sale
$245,000
5525 E THOMAS Road D5, Phoenix, AZ 85018
Second-floor residence with two bedrooms, remodeled baths, and a 2024 HVAC system.
Property Size982 SF
Days on Market9
Property Features for 5525 E THOMAS Road D5
General Information
Standard status
Active
Size
982 SF
Property subtype
Apartment
Additional Details
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$674
Building Details
Building Size
982 SF
Year Built
1974
Listing Agency:
Everystate, Inc
Listed By:
Blake Keathley
(661) 900-9145
Source:
Alexiabertsatos
Added: Sep 3
Changed: Sep 8
Last Checked: Sep 10 at 7:47AM
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 Everystate, Inc
Investment Insights
Based on property information with market context.
Built in 1974, this second-floor residential income property has been updated with fresh interior paint, oversized tile flooring, and an open arrangement of living spaces. The kitchen includes new countertops and stainless steel appliances, with a layout that connects directly to the primary living area. Two bedrooms provide separate private spaces, while both bathrooms have been updated, including a remodeled primary bath. The HVAC system was replaced in 2024 and is described as high-efficiency. The property is located at 5525 E THOMAS Road D5 in Phoenix, Arizona.
Key Highlights
- Second‑floor residential income property with two bedrooms
- Updated kitchen with new countertops and stainless steel appliances
- Oversized tile flooring and fresh interior paint
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
$11,454
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
4.68%
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%
$229,080
$229.1K
Cap Rate 7%
$163,629
$163.6K
Cap Rate 9%
$127,267
$127.3K
Market Conditions
NOI Build-Up for 982 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
$22.2K $22.56/SF
− Vacancy
−$1.3K −$1.35/SF
EGI
$20.8K $21.21/SF
− OpEx
−$9.4K −$9.54/SF
NOI
$11.5K $11.66/SF
Area
Phoenix, AZ
Vacancy
6.00%
Lease Rate
$22.56 /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%
$229,080
Cap Rate 7%
$163,629
Cap Rate 9%
$127,267
Alternative Uses
Best Use
Apartment 5plus
$163.6K
$143.2K – $190.9K
NOI $11,454 @ 7.0% cap · market cap 4.68%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$297.5K
$260.3K – $347.0K
NOI $20,822 @ 7.0% cap · market cap 8.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
404
Businesses Nearby
Explore this area
Business Placement
Demographics for 85018, AZ
37,944
Population
19,487
Households
1.9
Avg Household Size
40
Median Age
57%
College-Educated
92%
High-School Grad
15.1 sq mi
ZIP Area
2,513
Density / Sq Mi
$87,637
Median Household Income
$58,555
Median Earnings
$1,411
Median Rent
$805,800
Median Home Value
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Frequently Asked Questions
What type of property is this?
Residential income property - Second-floor residence with two bedrooms, remodeled baths, and a 2024 HVAC system.
Where is this residential income property located?
The property is located at 5525 E THOMAS Road D5 Phoenix, AZ.
What is the asking price?
The asking price for this property is $245,000.
What are key features of this property?
This property features: Second‑floor residential income property with two bedrooms; Updated kitchen with new countertops and stainless steel appliances; Oversized tile flooring and fresh interior paint
