Two-Unit Residential Income
For Sale
$265,000
609 E LANCASTER AVE, Reading, PA 19611
Well-maintained two-unit duplex with one occupied 1-bedroom unit and one vacant 2-bedroom unit.
Property Size1,636 SF
Price / SF$161.98
Days on Market53
Property Features for 609 E LANCASTER AVE
General Information
Standard status
Active
Size
1,636 SF
Property subtype
Multi-family
Additional Details
Multifamily Units
2
Listing Agency:
JM Diamond Realty
(610) 750-6078
Listed By:
Samantha Manzueta
(484) 794-8363
Source:
Hostetterrealty
Added: Jul 25
Changed: Sep 13
Last Checked: Sep 14 at 12:55PM
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 JM Diamond Realty
Investment Insights
Based on property information with market context.
609 E Lancaster Ave is a well-maintained two-unit residential income property. The first-floor unit is currently occupied as a 1-bedroom apartment with electric heat that was installed this year. The second unit is a vacant 2-bedroom apartment, previously collecting rent with gas heat.
The property is positioned near nearby stores, schools, and restaurants. With one unit ready for new tenancy and the other currently in place, the building offers an owner-occupant or investor the ability to manage two separate residential units under one roof.
This is a two-unit duplex configuration with separate apartment layouts, including heating systems specified for each unit.
The property is positioned near nearby stores, schools, and restaurants. With one unit ready for new tenancy and the other currently in place, the building offers an owner-occupant or investor the ability to manage two separate residential units under one roof.
This is a two-unit duplex configuration with separate apartment layouts, including heating systems specified for each unit.
Key Highlights
- 1903‑built well‑maintained 2‑unit duplex
- First‑floor unit: 1‑bedroom, occupied; tenant pays $1,150/month
- First‑floor unit has electric heat; electric heat just installed this year
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
$16,129
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
6.09%
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%
$322,580
$322.6K
Cap Rate 7%
$230,414
$230.4K
Cap Rate 9%
$179,211
$179.2K
Market Conditions
NOI Build-Up for 1,636 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
$24.0K $14.64/SF
− Vacancy
−$910 −$0.56/SF
EGI
$23.0K $14.08/SF
− OpEx
−$6.9K −$4.23/SF
NOI
$16.1K $9.86/SF
Area
Berks County, PA
Vacancy
3.80%
Lease Rate
$14.64 /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%
$322,580
Cap Rate 7%
$230,414
Cap Rate 9%
$179,211
Alternative Uses
Best Use
Multifamily LT 5
$230.4K
$201.6K – $268.8K
NOI $16,129 @ 7.0% cap · market cap 6.09%
Second Best
Apartment 5plus
$201.4K
$176.2K – $235.0K
NOI $14,097 @ 7.0% cap · market cap 5.32%
Theoretical Best
Office A
$268.6K
$235.0K – $313.3K
NOI $18,800 @ 7.0% cap · market cap 7.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
472
Businesses Nearby
Explore this area
Business Placement
Demographics for 19611, PA
11,238
Population
4,555
Households
2.5
Avg Household Size
35
Median Age
25%
College-Educated
85%
High-School Grad
2.0 sq mi
ZIP Area
5,619
Density / Sq Mi
$56,379
Median Household Income
$40,791
Median Earnings
$1,098
Median Rent
$161,900
Median Home Value
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Market
Vacancy Rate% for Multifamily in Northeast region
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Frequently Asked Questions
What type of property is this?
Duplex - Well-maintained two-unit duplex with one occupied 1-bedroom unit and one vacant 2-bedroom unit.
Where is this duplex located?
The property is located at 609 E LANCASTER AVE Reading, PA.
What is the asking price?
The asking price for this property is $265,000.
What are key features of this property?
This property features: 1903‑built well‑maintained 2‑unit duplex; First‑floor unit: 1‑bedroom, occupied; tenant pays $1,150/month; First‑floor unit has electric heat; electric heat just installed this year
