Income-Producing Duplex with Value-Add
For Sale
Contact for pricing
805 Mckinley Ave NE, Huntsville, AL 35801
Income-producing duplex with long-term tenants and value-add potential.
Property Size1,380 SF
Price / SF$206.45
Days on Market173
Property Features for 805 Mckinley Ave NE
General Information
Standard status
Active
Size
1,380 SF
Class
B
Property subtype
Multifamily
Occupancy
50%
Investment Type
Value Add
Net Operating Income
$16,236
Building Details
Year Built
1900
Year Renovated
2018
Buildings
1
Stories
2
Units
2
Listing Agency:
Huntsville-Keller Williams Realty
(256) 417-9394
Listed By:
Summer Shelkey · License #AL 72656
Source:
Crexi
Added: Feb 19
Changed: Aug 8
Last Checked: Aug 8 at 3:16PM
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 Huntsville-Keller Williams Realty
Investment Insights
Based on property information with market context.
This income-producing duplex, constructed in 1900, presents an opportunity for investors seeking stabilized income with value-add potential. Long-term tenancy is in place, with a recent vacancy allowing for rent repositioning. This property is a 1031 exchange opportunity. Each unit features a functional layout, including a living room, kitchen, and half bath, along with laundry facilities on the main level. The upper level includes a bedroom with a full bath. The main level features heart of pine wood floors. Both units have covered front and rear porches, and share a large, chain link fenced backyard. Appliances, including a dishwasher, refrigerator, and range/oven, will remain in each unit. The roof was replaced in 2017. Tenants are responsible for all utilities, while the owner covers taxes and insurance. The property size is 1380 square feet.
Key Highlights
- Income‑producing duplex with long‑term tenancy in place.
- Value‑add potential through rent repositioning due to recent vacancy.
- Functional layout: living room, kitchen, half bath, & laundry on the main level; bedroom w/ full bath upstairs in each unit.
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
$10,067
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
3.53%
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%
$201,340
$201.3K
Cap Rate 7%
$143,814
$143.8K
Cap Rate 9%
$111,856
$111.9K
Market Conditions
NOI Build-Up for 1,380 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
$17.4K $12.60/SF
− Vacancy
−$3.0K −$2.18/SF
EGI
$14.4K $10.42/SF
− OpEx
−$4.3K −$3.13/SF
NOI
$10.1K $7.30/SF
Area
Huntsville, AL
Vacancy
17.29%
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%
$201,340
Cap Rate 7%
$143,814
Cap Rate 9%
$111,856
Alternative Uses
Best Use
Multifamily LT 5
$143.8K
$125.8K – $167.8K
NOI $10,067 @ 7.0% cap · market cap 3.53%
Second Best
Apartment 5plus
$124.5K
$109.0K – $145.3K
NOI $8,717 @ 7.0% cap · market cap 3.06%
Theoretical Best
Office A
$359.4K
$314.4K – $419.3K
NOI $25,155 @ 7.0% cap · market cap 8.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
593
Businesses Nearby
Explore this area
Business Placement
Demographics for 35801, AL
22,539
Population
11,225
Households
2
Avg Household Size
43
Median Age
55%
College-Educated
90%
High-School Grad
13.8 sq mi
ZIP Area
1,633
Density / Sq Mi
$103,125
Median Household Income
$60,370
Median Earnings
$1,130
Median Rent
$399,700
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Income-producing duplex with long-term tenants and value-add potential.
Where is this duplex located?
The property is located at 805 Mckinley Ave NE Huntsville, AL.
What is the asking price?
The asking price for this property is $284,900.
What are key features of this property?
This property features: Income‑producing duplex with long‑term tenancy in place.; Value‑add potential through rent repositioning due to recent vacancy.; Functional layout: living room, kitchen, half bath, & laundry on the main level; bedroom w/ full bath upstairs in each unit.
