Denver duplex soon for sale, not sure how to price it

[Adam Haman]

Good morning!

I'm looking at selling one of my rentals in Clayton at 3305 Cook St in Denver, and am looking for advice as to how to market it and for what price. Here are a few considerations:

--I've rented it for years as a 6 bed/2 bath section 8 rental, nearly 2000 sqft. 

--It is zoned for a duplex and was previously a 4bed/1bath and a 2bed/1bath unit. Separate furnaces, separate hot water, separate electrical. 

--7 blocks to the new light rail station to the North, 7 blocks to City Park to the South.

--No garage, but has a concrete pad poured, the perfect area to build a 2-car garage.

--Large side yard.

--Newer electrical, windows, furnaces, roof

--Large basement for storage, or could be made into laundry facility for the duplex.

Here is the rub:

--The original garage for the home, located just behind the house, was split off into a separate address before I purchased the home. I do not own the garage unit, so this amounts to a neighbor being very close. How off-putting is that to an owner occupant?

A few questions for Denverites:

1) What cap rate are you seeing for duplexes around town? With about $7k of rehab, I could make this ready to go as a duplex, and feel the 2-bed would rent readily at $1,000, and the 4-bed closer to $1,500. Is a price of $375,000 out of line?

2) Is there any scenario in which this home has more market appeal as a single-family vs marketing it as a duplex?  Very few homes have this kind of square footage in the area, but very few buyers need 5 or 6 bedrooms as well.

Thanks for any insight, and yes, I would definitely consider inquiries if anyone is interested. I'm looking to 1031 into a property I've already identified. The current tenant does not vacate til the end of the month, and barring an earlier sale I would go through and spruce up the joint to have it on the MLS by mid-April hopefully.

Have a great morning and thanks for your insight!!