Occupied Duplex with Fenced
For Sale
$250,000
Pending
6309 Potts Rd, Chattanooga, TN 37416
Two-bedroom, one-bath units feature mostly brick exteriors, a metal roof, and separate residential layouts.
Property Size1,949 SF
Days on Market51
Property Features for 6309 Potts Rd
General Information
Standard status
Pending
Size
1,949 SF
Property subtype
Residential Income
Occupancy
100%
Units
Unit Mix
2 x 2BR/1BA
Multifamily Units
2
Amenities
fenced backyard
Building Details
Year Built
1971
Buildings
1
Tenancy
Multi
Listing Agency:
RE/MAX Properties
(423) 605-9713
Listed By:
Daniel Hunter · License #343739
Source:
Chattanoogaareahomesforsale
Added: Jul 10
Changed: Aug 29
Last Checked: Aug 29 at 10:40AM
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 RE/MAX Properties
Investment Insights
Based on property information with market context.
This duplex includes two bedrooms and one bathroom on each side, with a mostly brick exterior, metal roof, and fenced backyard. The property is positioned in a cul-de-sac and is fully occupied. One tenant is on a month-to-month arrangement, while the other has a new 1-year lease beginning July 1.2026.
Located near Volkswagen and Amazon, the property is at 6309 Potts Rd in Chattanooga, Tennessee. Its two-unit configuration and existing occupancy provide a straightforward residential income property profile, with unit-level bedroom and bathroom counts clearly defined for each side.
Located near Volkswagen and Amazon, the property is at 6309 Potts Rd in Chattanooga, Tennessee. Its two-unit configuration and existing occupancy provide a straightforward residential income property profile, with unit-level bedroom and bathroom counts clearly defined for each side.
Key Highlights
- Two‑bedroom, one‑bath layout on each side of the duplex
- Fully occupied with one month‑to‑month tenant
- One tenant has a new 1‑year lease beginning July 1.2026
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
$19,134
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
7.65%
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%
$382,680
$382.7K
Cap Rate 7%
$273,343
$273.3K
Cap Rate 9%
$212,600
$212.6K
Market Conditions
NOI Build-Up for 1,949 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
$29.2K $15.00/SF
− Vacancy
−$1.9K −$0.98/SF
EGI
$27.3K $14.03/SF
− OpEx
−$8.2K −$4.21/SF
NOI
$19.1K $9.82/SF
Area
Chattanooga, TN
Vacancy
6.50%
Lease Rate
$15.00 /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%
$382,680
Cap Rate 7%
$273,343
Cap Rate 9%
$212,600
Alternative Uses
Best Use
Multifamily LT 5
$273.3K
$239.2K – $318.9K
NOI $19,134 @ 7.0% cap · market cap 7.65%
Second Best
Apartment 5plus
$245.3K
$214.6K – $286.2K
NOI $17,170 @ 7.0% cap · market cap 6.87%
Theoretical Best
Office A
$430.4K
$376.6K – $502.2K
NOI $30,131 @ 7.0% cap · market cap 12.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
230
Businesses Nearby
Explore this area
Business Placement
Demographics for 37416, TN
14,844
Population
6,598
Households
2.2
Avg Household Size
42
Median Age
34%
College-Educated
94%
High-School Grad
20.5 sq mi
ZIP Area
724
Density / Sq Mi
$65,083
Median Household Income
$37,379
Median Earnings
$1,086
Median Rent
$229,600
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Duplex - Two-bedroom, one-bath units feature mostly brick exteriors, a metal roof, and separate residential layouts.
Where is this duplex located?
The property is located at 6309 Potts Rd Chattanooga, TN.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: Two‑bedroom, one‑bath layout on each side of the duplex; Fully occupied with one month‑to‑month tenant; One tenant has a new 1‑year lease beginning July 1.2026
