Listing Agency: Gerald Chavez Realty Inc a***@yahoo.com Show Phone

Listed By: Ambrose R Chavez · License #9235 Show Phone

Source: Exprealty

Added: Jan 20 Changed: Aug 30 Last Checked: Aug 31 at 7:39PM

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Investment Insights

Based on property information with market context.

This duplex property includes two residences with two bedrooms each. Every unit is equipped with a 2.5-ton mini-split system serving three heads, providing dedicated climate-control equipment for each residence. A detached garage/shop and carport add covered utility and vehicle-related space separate from the main dwelling.

The property encompasses 2.489 acres at 735 Highway 116 in Bosque, NM. Its two-unit configuration supports multiple occupancy arrangements, including living in one residence while renting the other or leasing both units. The combination of residential units, outbuildings, and acreage provides a broad physical layout for an owner-occupant or rental operation.

Key Highlights

• Two duplex residences with 2 bedrooms each
• Each unit has a 2.5‑ton mini‑split system with 3‑heads
• Property spans 2.489 acres

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

$16,153

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

4.97%

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%

$323,060 $323.1K

Cap Rate 7%

$230,757 $230.8K

Cap Rate 9%

$179,478 $179.5K

Market Conditions

NOI Build-Up for 1,938 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

$24.4K $12.60/SF

− Vacancy

−$1.3K −$0.69/SF

EGI

$23.1K $11.91/SF

− OpEx

−$6.9K −$3.57/SF

NOI

$16.2K $8.33/SF

Area

Valencia County, NM

Vacancy

5.50%

Lease Rate

$12.60 /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%

$323,060

Cap Rate 7%

$230,757

Cap Rate 9%

$179,478

Alternative Uses

Best Use

Multifamily LT 5

$230.8K

$201.9K – $269.2K (±1% cap)

NOI $16,153 @ 7.0% cap · market cap 4.97%

Second Best

Apartment 5plus

$211.3K

$184.9K – $246.5K (±1% cap)

NOI $14,789 @ 7.0% cap · market cap 4.55%

Theoretical Best

Office A

$400.7K

$350.6K – $467.5K (±1% cap)

NOI $28,051 @ 7.0% cap · market cap 8.63%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Duplexes

Suggested Use

Top Pick Hotel & Motel

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

2

Residential units

Location Intelligence

Trade Area within ½ mile

11

Businesses Nearby

Explore this area Business Placement

Demographics for 87006, NM

705

Population

338

Households

2.1

Avg Household Size

50

Median Age

17%

College-Educated

100%

High-School Grad

62.0 sq mi

ZIP Area

11

Density / Sq Mi

$101,667

Median Household Income

$46,923

Median Earnings

$196,700

Median Home Value

Market

Vacancy Rate% for Multifamily in West region

7% 2022

7.8% 2023

8.6% 2024

8.6% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Duplex - Two residences feature individual three-head mini-split systems, plus a detached garage/shop and carport on a spacious tract.

Where is this duplex located?

The property is located at 735 Highway 116 Bosque, NM.

What is the asking price?

The asking price for this property is $325,000.

What are key features of this property?

This property features: Two duplex residences with 2 bedrooms each; Each unit has a 2.5‑ton mini‑split system with 3‑heads; Property spans 2.489 acres