How To Price A Duplex In Suisun City

Pricing a duplex in Suisun City can feel tricky. You want to capture investor interest without missing owner‑occupant buyers, and you need a number that stands up to appraisal and buyer scrutiny. The good news is there’s a clear process you can follow. In this guide, you’ll learn how to price using income and comparable sales, how to choose a cap rate, what adjustments matter most, and which documents buyers expect. Let’s dive in.

Know your likely buyer

Before you set a price, think about who will buy your duplex.

• Owner‑occupants often weigh comparable sales and payment affordability. Financing options can widen the buyer pool and support a higher price if the property shows well.
• Investors focus on cash flow, NOI, cap rate, and price per door. Clear financials matter.

If you expect more investors, give more weight to the income approach. If you expect more owner‑occupants, lean on comps while still proving income strength.

Use three valuation methods

Income approach

For duplexes, income valuation ties price to performance. Here’s the sequence:

1. Establish market rents per unit and build a stabilized rent roll. Include other income like laundry or parking.
2. Calculate Effective Gross Income (EGI) by subtracting vacancy and collection loss from scheduled rent, then add other income.
3. Subtract operating expenses (not loan payments) to get Net Operating Income (NOI).
4. Select a market cap rate and compute Value = NOI ÷ Cap Rate.

Illustrative example:

• Potential rent: $3,800/month → $45,600/year
• Vacancy/collection loss at 5%: $2,280 → EGI = $43,320
• Operating expenses at 30% of EGI: $12,996 → NOI = $30,324
• Value at a 5.5% cap: $30,324 ÷ 0.055 ≈ $551,345

Comparable sales approach

Pull recent duplex and small multifamily sales in Suisun City first, then widen to nearby Solano markets (Fairfield, Vallejo, Benicia) if needed. Compare:

• Price per unit and price per square foot
• GRM (sale price ÷ annual gross rent)

Illustrative GRM check:

• Annual gross rent: $45,600
• If a similar sale traded at GRM 10 → Estimated price ≈ $456,000

Cost approach

Use this as a secondary check, especially if comps are scarce or the property is newly built or heavily renovated. Estimate replacement cost plus land value, minus depreciation.

Triangulate your result

You can weight each approach based on your likely buyer pool:

• Investor‑focused listing: about 60% income, 30% comps, 10% cost.
• Owner‑occupant sale: about 60% comps, 30% income, 10% cost.

If methods diverge, dig into your assumptions. Revisit rents, vacancy, expenses, and the comp set.

Build your rent roll and NOI

Start with the income statement buyers will underwrite.

• Scheduled rent: current signed rents per unit.
• Stabilized market rent: the rent you can achieve after re‑leasing to market.
• Vacancy and collection loss: use local context. Tight markets often run 3–8%; looser markets can be 8–12%. Adjust for property age and unit mix.
• Other income: laundry, parking, storage, or pet rent.

Operating expenses to include:

• Property taxes, insurance, and any owner‑paid utilities
• Repairs and maintenance
• Landscaping
• Management (0–8% if owner‑managed, 6–10% if professional)
• Legal/accounting and advertising
• Reserves for replacements, often $250–$600 per unit per year, adjusted for age

As a check, small duplexes often show an operating expense ratio of roughly 25–45% of EGI when owner‑managed, with older or professionally managed properties trending higher.

Value the upside:

• If one unit is $200 under market, that is $2,400 per year. At a 5.5% cap, the potential value add is $2,400 ÷ 0.055 ≈ $43,636.

Select a market cap rate

Cap rate reflects risk, location, and asset quality. To select a rate, look to recent 2–4 unit sales in Suisun City and broader Solano County, along with current small‑multifamily surveys. If interest rates have risen, local cap rates often trend upward too. Validate your selection with real, recent sales.

Why cap rate matters:

• Using the illustrative NOI above ($30,324), value at 5.5% is ≈ $551,345.
• At 6.0%, value is ≈ $505,400.
• A 0.5% change reduces value by about $45,900 in this example.

Pull local comps the right way

Look for duplex sales within the last 6–12 months in Suisun City first. If that set is thin, widen to nearby Solano cities with similar housing stock. Make focused adjustments for:

• Unit mix and size: bedrooms, bathrooms, and square footage per unit
• Gross rent: adjust rent differences using GRM or income capitalization
• Condition and updates: roof, HVAC, electrical, plumbing, and finishes
• Parking: off‑street spaces per unit
• Utilities: whether owner or tenant pays water, sewer, garbage, gas, or electric
• Permits: legal ADUs or rentable structures vs. unpermitted conversions
• Lease status: month‑to‑month vs. fixed‑term and below‑market leases
• Micro‑location: proximity to main streets, noise sources, transit, services, and any flood‑zone considerations

Ways to quantify adjustments:

• Dollar adjustments for tangible items like roof or HVAC
• Percent adjustments for finishes or parking
• Income capitalization for rent differences: Value change = rent change × 12 ÷ cap rate

Prepare documents buyers expect

Organized documentation builds trust and supports price.

Income and lease documentation:

• Current rent roll with deposits, lease terms, and start/end dates
• Copies of all leases and addenda
• Rent payment history (12–24 months) and past rent‑increase notices

Expense documentation:

• P&L statements and invoices for the last 2–3 years
• Utility bills for 12 months if owner‑paid
• Insurance declarations and property tax bills, including any supplemental assessments

Property condition and compliance:

• Permits for remodels, unit conversions, and major systems
• Recent inspection reports (pest, roof, HVAC) if available
• Capital improvement records and warranties
• Lead‑based paint disclosure for pre‑1978 buildings
• Smoke and CO detector confirmations, and any local compliance certificates

Legal and title:

• Preliminary title report with easements and encumbrances
• Any short‑term rental compliance documents if applicable
• Copies of recent tenant notices tied to tenancy status

What investors will probe:

• Market‑level vacancy and realistic rent‑up timelines
• Deferred maintenance and near‑term capital needs
• Tenant stability and lease terms
• Zoning and potential for ADUs or densification

Account for rules and taxes

Regulatory context affects value and pricing strategy. In Suisun City and Solano County, verify:

• Rent control or local tenant ordinances beyond state law
• AB 1482 (California Tenant Protection Act): statewide rent caps and just‑cause rules, with exemptions in some cases such as certain owner‑occupied duplexes
• Property tax mechanics: Prop 13 base‑year, supplemental assessments at sale, and any special assessments or bonds via the Solano County Assessor
• Short‑term rental rules if you plan to convert or operate a unit as an STR

Confirm the current status of each item before you go to market.

Step‑by‑step pricing workflow

Use this simple sequence to set and defend your price:

1. Gather unit‑level rent data and confirm market rents for any under‑market units.
2. Build a stabilized rent roll and estimate vacancy/collection loss.
3. Add other income and calculate EGI.
4. Itemize operating expenses and reserves to arrive at NOI.
5. Pull recent local duplex comps and note price per door, price per square foot, and GRM.
6. Select a market‑supported cap rate from recent sales and run Value = NOI ÷ Cap Rate.
7. Adjust comps for unit mix, condition, parking, utilities, leases, and micro‑location.
8. Reconcile income and comps into a price range and choose a list price that fits your buyer pool.
9. Assemble documentation so buyers and appraisers can verify your numbers.

When to call a pro

If you want to reach both owner‑occupants and investors, your pricing, presentation, and distribution must work in both worlds. That is where a senior‑led advisory pays off. The Elite Club combines luxury residential marketing with rigorous income‑asset underwriting so your duplex speaks to lifestyle buyers and cash‑flow buyers at the same time. You get concierge preparation, NOI modeling, comp analysis, and coordinated distribution to both global and investor channels, plus guidance on 1031 strategy when relevant.

Ready to price your Suisun City duplex with confidence? Connect with The Elite Club for a private, senior‑led consultation.

FAQs

How do I value a Suisun City duplex if one unit is vacant?

• Build a stabilized rent roll using market rent for the vacant unit, apply a realistic vacancy/collection loss, estimate expenses, and price using both the income and comparable sales approaches.

What cap rate should I use for a duplex in Solano County?

• Derive cap rate from recent 2–4 unit sales in Suisun City and nearby Solano markets, then cross‑check with current small‑multifamily surveys to confirm investor yield expectations.

Does AB 1482 apply to duplexes in Suisun City?

• AB 1482’s rent caps and just‑cause rules are broad, but some duplexes with an owner‑occupant can be exempt; verify the property’s specific status and any local ordinances before pricing.

Which expenses belong in NOI for a Suisun City duplex?

• Include taxes, insurance, owner‑paid utilities, repairs and maintenance, landscaping, management, legal/accounting, advertising, and reserves for replacements; exclude mortgage payments.

How do I value rent‑up potential on an under‑market unit?

• Capitalize the annual rent difference by the market cap rate; for example, a $200 monthly increase is $2,400 per year, which at a 5.5% cap is roughly $43,636 in potential value.