Two-Unit Residential Income
For Sale
$275,000
589 South Street, Castleton, VT 05735
Two rental units on a level, fenced lot, with current leases extending through May 2027.
Property Size2,000 SF
Lot Size1.00 Acre
Price / SF$137.50
Days on Market113
Property Features for 589 South Street
General Information
Standard status
Active
Size
2,000 SF
Lot size
1.00 Acre
Property subtype
Multi-family
Additional Details
Multifamily Units
2
Building Details
Year Built
1880
Listing Agency:
Lakes & Homes Real Estate
Listed By:
Nancy Liberatore
(802) 422-3600
Source:
Killingtonpicorealty
Added: May 16
Changed: Sep 4
Last Checked: Sep 4 at 9:54AM
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 Lakes & Homes Real Estate
Investment Insights
Based on property information with market context.
This two-unit residential income property offers two separate leased units within a single building. Each unit includes 3 bedrooms and 1 bathroom. The property is situated on an almost one-acre, level lot with fencing on three sides.
The asset is located just outside the campus of Vermont State University and provides easy proximity to Rutland County’s area amenities. It is also within walking distance to downtown Castleton.
Current leases are in place through May 2027, supporting long-term occupancy for both units.
The asset is located just outside the campus of Vermont State University and provides easy proximity to Rutland County’s area amenities. It is also within walking distance to downtown Castleton.
Current leases are in place through May 2027, supporting long-term occupancy for both units.
Key Highlights
- 2‑unit multi‑family built in 1880 with 3 bed/1 bath units
- Almost 1‑acre level lot with fencing on three sides
- Current leases in place through May 2027
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
$18,953
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
6.89%
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%
$379,060
$379.1K
Cap Rate 7%
$270,757
$270.8K
Cap Rate 9%
$210,589
$210.6K
Market Conditions
NOI Build-Up for 2,000 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 $13.80/SF
− Vacancy
−$524 −$0.26/SF
EGI
$27.1K $13.54/SF
− OpEx
−$8.1K −$4.06/SF
NOI
$19.0K $9.48/SF
Area
Rutland County, VT
Vacancy
1.90%
Lease Rate
$13.80 /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%
$379,060
Cap Rate 7%
$270,757
Cap Rate 9%
$210,589
Alternative Uses
Best Use
Multifamily LT 5
$270.8K
$236.9K – $315.9K
NOI $18,953 @ 7.0% cap · market cap 6.89%
Second Best
Apartment 5plus
$249.5K
$218.3K – $291.1K
NOI $17,464 @ 7.0% cap · market cap 6.35%
Theoretical Best
Healthcare Medical
$348.2K
$304.7K – $406.3K
NOI $24,376 @ 7.0% cap · market cap 8.86%
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
48
Businesses Nearby
Explore this area
Business Placement
Demographics for 05735, VT
4,019
Population
1,746
Households
2.3
Avg Household Size
37
Median Age
39%
College-Educated
96%
High-School Grad
44.3 sq mi
ZIP Area
91
Density / Sq Mi
$76,816
Median Household Income
$25,593
Median Earnings
$1,310
Median Rent
$226,800
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Two rental units on a level, fenced lot, with current leases extending through May 2027.
Where is this duplex located?
The property is located at 589 South Street Castleton, VT.
What is the asking price?
The asking price for this property is $275,000.
What are key features of this property?
This property features: 2‑unit multi‑family built in 1880 with 3 bed/1 bath units; Almost 1‑acre level lot with fencing on three sides; Current leases in place through May 2027
