Tenant-Occupied
New
For Sale
$170,000
574-576 Mckinley St, Memphis, TN 38126
Two occupied residential units are supported by existing lease agreements and in-house professional management.
Property Size1,738 SF
Price / SF$97.81
Days on Market4
Property Features for 574-576 Mckinley St
General Information
Standard status
Active
Size
1,738 SF
Property subtype
Multi-Family
Units
Unit Mix
2 x 2BR/1BA
Multifamily Units
2
Additional Details
Gross Income
$17,400
Building Details
Year Built
1900
Listing Agency:
Adaro Realty, Inc
Listed By:
Stacia Rosatti
(901) 270-9019
Source:
Staciarosatti
Added: Sep 12
Changed: Sep 14
Last Checked: Sep 14 at 9:01AM
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 Adaro Realty, Inc
Investment Insights
Based on property information with market context.
This tenant-occupied duplex contains 1,738 square feet with a combined layout of 4 bedrooms and 2 bathrooms. The property includes two separate 2-bedroom, 1-bath units, providing a straightforward residential configuration for an income property. Built in 1900, the building is professionally managed in-house.
The units are located at 574-576 McKinley St in Memphis, Tennessee. Unit 574 is leased through 03/31/2028, while Unit 576 is leased through 09/16/2026. Showings require an accepted offer, and tenants should not be disturbed.
The units are located at 574-576 McKinley St in Memphis, Tennessee. Unit 574 is leased through 03/31/2028, while Unit 576 is leased through 09/16/2026. Showings require an accepted offer, and tenants should not be disturbed.
Key Highlights
- 1,738‑square‑foot duplex with 4 bedrooms and 2 bathrooms
- Two separate 2‑bedroom, 1‑bath units
- Unit 574 leased through 03/31/2028
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
$14,657
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
8.62%
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%
$293,140
$293.1K
Cap Rate 7%
$209,386
$209.4K
Cap Rate 9%
$162,856
$162.9K
Market Conditions
NOI Build-Up for 1,738 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
$22.3K $12.84/SF
− Vacancy
−$1.4K −$0.79/SF
EGI
$20.9K $12.05/SF
− OpEx
−$6.3K −$3.61/SF
NOI
$14.7K $8.43/SF
Area
Memphis, TN
Vacancy
6.17%
Lease Rate
$12.84 /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%
$293,140
Cap Rate 7%
$209,386
Cap Rate 9%
$162,856
Alternative Uses
Best Use
Multifamily LT 5
$209.4K
$183.2K – $244.3K
NOI $14,657 @ 7.0% cap · market cap 8.62%
Second Best
Apartment 5plus
$185.4K
$162.2K – $216.3K
NOI $12,977 @ 7.0% cap · market cap 7.63%
Theoretical Best
Office A
$513.7K
$449.5K – $599.3K
NOI $35,956 @ 7.0% cap · market cap 21.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
764
Businesses Nearby
Explore this area
Business Placement
Demographics for 38126, TN
5,717
Population
3,260
Households
1.8
Avg Household Size
32
Median Age
14%
College-Educated
82%
High-School Grad
1.9 sq mi
ZIP Area
3,009
Density / Sq Mi
$30,825
Median Household Income
$32,396
Median Earnings
$794
Median Rent
$59,000
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 - Two occupied residential units are supported by existing lease agreements and in-house professional management.
Where is this duplex located?
The property is located at 574-576 Mckinley St Memphis, TN.
What is the asking price?
The asking price for this property is $170,000.
What are key features of this property?
This property features: 1,738‑square‑foot duplex with 4 bedrooms and 2 bathrooms; Two separate 2‑bedroom, 1‑bath units; Unit 574 leased through 03/31/2028
