Duplex with Updated
For Sale
$400,000
714 Merriam St, Chattanooga, TN 37405
One unit operates as a short-term rental, while the second has a long-term tenant under lease.
Property Size1,344 SF
Price / SF$297.62
Days on Market8
Property Features for 714 Merriam St
General Information
Standard status
Active
Size
1,344 SF
Property subtype
Residential Income
Additional Details
Road Access
Yes
Multifamily Units
2
Amenities
off-street parking
storage building
fenced backyard
Building Details
Year Built
1960
Buildings
1
Tenancy
Multi
Listing Agency:
REAL Broker
Listed By:
Ashley Ballezzi · License #341772
(423) 223-5542
Source:
Chattanoogaareahomesforsale
Added: Sep 20
Changed: Sep 26
Last Checked: Sep 26 at 2:18PM
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 REAL Broker
Investment Insights
Based on property information with market context.
This 1,344-square-foot duplex, built in 1960, has a one-bedroom, one-bath unit at 712 Merriam St. with storage, off-street parking, and access to a fenced, level backyard. A separate storage building and rear alley access are also part of the property. Recent work includes a new roof and an encapsulated crawlspace; electrical and plumbing systems, kitchens, bathrooms, flooring, and insulated windows have also been updated in recent years.
The 712 side operates as a short-term rental. The 714 side is occupied by a long-term tenant with a lease through June 1, 2027. The property is within walking distance of Northshore, downtown, restaurants, shops, gyms, parks, and hiking trails.
The 712 side operates as a short-term rental. The 714 side is occupied by a long-term tenant with a lease through June 1, 2027. The property is within walking distance of Northshore, downtown, restaurants, shops, gyms, parks, and hiking trails.
Key Highlights
- 1,344‑square‑foot duplex built in 1960
- New roof and encapsulated crawlspace
- Electrical, plumbing, kitchens, bathrooms, flooring, and insulated windows updated in recent years
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
$13,195
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
3.30%
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%
$263,900
$263.9K
Cap Rate 7%
$188,500
$188.5K
Cap Rate 9%
$146,611
$146.6K
Market Conditions
NOI Build-Up for 1,344 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
$20.2K $15.00/SF
− Vacancy
−$1.3K −$0.98/SF
EGI
$18.8K $14.03/SF
− OpEx
−$5.7K −$4.21/SF
NOI
$13.2K $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%
$263,900
Cap Rate 7%
$188,500
Cap Rate 9%
$146,611
Alternative Uses
Best Use
Multifamily LT 5
$188.5K
$164.9K – $219.9K
NOI $13,195 @ 7.0% cap · market cap 3.30%
Second Best
Apartment 5plus
$169.1K
$148.0K – $197.3K
NOI $11,840 @ 7.0% cap · market cap 2.96%
Theoretical Best
Office A
$296.8K
$259.7K – $346.3K
NOI $20,778 @ 7.0% cap · market cap 5.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
2
Residential units
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,229
Businesses Nearby
Explore this area
Business Placement
Demographics for 37405, TN
18,231
Population
9,959
Households
1.8
Avg Household Size
36
Median Age
53%
College-Educated
92%
High-School Grad
54.3 sq mi
ZIP Area
336
Density / Sq Mi
$77,850
Median Household Income
$51,748
Median Earnings
$1,276
Median Rent
$416,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Duplex - One unit operates as a short-term rental, while the second has a long-term tenant under lease.
Where is this duplex located?
The property is located at 714 Merriam St Chattanooga, TN.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: 1,344‑square‑foot duplex built in 1960; New roof and encapsulated crawlspace; Electrical, plumbing, kitchens, bathrooms, flooring, and insulated windows updated in recent years
