Updated Duplex with Fenced
For Sale
$199,900
618 S 2nd Ave, Sioux Falls, SD 57104
Fully leased duplex with refreshed kitchens and baths, private laundry, porch access, and off-street parking.
Property Size1,484 SF
Price / SF$134.70
Days on Market14
Property Features for 618 S 2nd Ave
General Information
Standard status
Active
Size
1,484 SF
Property subtype
Multi-Family
Occupancy
100%
Units
Unit Mix
1 x 2BR/1BA, 1 x 1BR/1BA
Multifamily Units
2
Additional Details
Road Access
Yes
Amenities
updated kitchens and bathrooms
washer and dryer
front and back porches
enclosed back porch
basement storage
fenced yard
off-street parking
Building Details
Year Built
1885
Listing Agency:
The Experience Real Estate
(605) 501-6622
Listed By:
Amy Stockberger Real Estate
(605) 501-6622
Source:
Findahomeinsiouxfalls
Added: Aug 17
Changed: Aug 29
Last Checked: Aug 29 at 6:19PM
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 The Experience Real Estate
Investment Insights
Based on property information with market context.
This two-unit property, built in 1885, includes 1,484 square feet of residential space. The larger unit has 2 bedrooms, 1 bath, an oversized kitchen and living room, and basement storage. The 1-bedroom, 1-bath second unit includes a living room and enclosed rear porch storage. Each unit has its own washer and dryer, with access to both front and back porches.
Both residences are leased through April 2027. The property also offers a fenced yard, off-street parking accessed from the alley, and additional on-street parking along the front. Its location at 618 S 2nd Ave places the duplex within walking distance of downtown shopping and activities, bike paths, parks, and other public amenities.
Both residences are leased through April 2027. The property also offers a fenced yard, off-street parking accessed from the alley, and additional on-street parking along the front. Its location at 618 S 2nd Ave places the duplex within walking distance of downtown shopping and activities, bike paths, parks, and other public amenities.
Key Highlights
- Two‑unit property with 1,484 square feet, built in 1885
- Both units rented through April 2027
- Larger unit offers 2 bedrooms, 1 bath, oversized kitchen and living room, plus basement storage
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
$12,955
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
6.48%
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%
$259,100
$259.1K
Cap Rate 7%
$185,071
$185.1K
Cap Rate 9%
$143,944
$143.9K
Market Conditions
NOI Build-Up for 1,484 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
$20.5K $13.80/SF
− Vacancy
−$2.0K −$1.33/SF
EGI
$18.5K $12.47/SF
− OpEx
−$5.6K −$3.74/SF
NOI
$13.0K $8.73/SF
Area
Sioux Falls, SD
Vacancy
9.63%
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%
$259,100
Cap Rate 7%
$185,071
Cap Rate 9%
$143,944
Alternative Uses
Best Use
Multifamily LT 5
$185.1K
$161.9K – $215.9K
NOI $12,955 @ 7.0% cap · market cap 6.48%
Second Best
Apartment 5plus
$169.7K
$148.5K – $198.0K
NOI $11,882 @ 7.0% cap · market cap 5.94%
Theoretical Best
Office A
$403.0K
$352.6K – $470.1K
NOI $28,208 @ 7.0% cap · market cap 14.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
100%
Occupancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,961
Businesses Nearby
Explore this area
Business Placement
Demographics for 57104, SD
26,998
Population
13,952
Households
1.9
Avg Household Size
37
Median Age
25%
College-Educated
90%
High-School Grad
30.4 sq mi
ZIP Area
888
Density / Sq Mi
$59,161
Median Household Income
$39,101
Median Earnings
$849
Median Rent
$183,700
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Fully leased duplex with refreshed kitchens and baths, private laundry, porch access, and off-street parking.
Where is this duplex located?
The property is located at 618 S 2nd Ave Sioux Falls, SD.
What is the asking price?
The asking price for this property is $199,900.
What are key features of this property?
This property features: Two‑unit property with 1,484 square feet, built in 1885; Both units rented through April 2027; Larger unit offers 2 bedrooms, 1 bath, oversized kitchen and living room, plus basement storage
