Leased 4-Plex with Individual
For Sale
$385,000
2904 Highland Avenue, McAllen, TX 78501
MULTI_FAMILY - McAllen, TX
Property Size3,384 SF
Lot Size0.19 Acres
Price / SF$113.77
Days on Market80
Property Features for 2904 Highland Avenue
General Information
Property type
Residential Multi Family
Property subtype
Other
Parking
4
Parking features
Other
Patio and Porch features
Deck
Appliances
Electric Water Heater, Refrigerator, Stove/Range
Subdivision
La Lomita Estates
Lot features
Curb & Gutters, Sidewalks
Elementary school
Seguin
Middle school
De Leon
High school
Rowe H.S.
Elementary school district
McAllen ISD
Middle school district
McAllen ISD
High school district
McAllen ISD
Directions
Head northwest on I-2, Take exit 140 toward FM 2220/Ware Rd, Merge onto W Expy 83/W Frontage Rd E/US-83 Frontage Rd/WB U S 83, Turn right onto S 29th St/Rooth Rd, Continue to follow S 29th St, Turn left onto Highland Ave/Z Highland Ave W, Destination will be on the right.
Standard status
Active
APN
L132000000009100
Size
3,384 SF
Lot size
0.19 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
5126
Utilities
Heating system
Central
Cooling system
Central Air
Water source
Public
Building Details
Year built
2000
Floors in Building
2
Number of units
4
Building materials
Brick
Roof type
Shingle
Listing Agency:
HCH Realty
(956) 687-8900
Listed By:
Cecilia Olivarez · License #686906
(956) 353-2401
Added: Jun 12
Changed: Jul 30
Last Checked: Aug 30 at 1:06PM
MLS# 498364
Copyright © 2026 Greater McAllen Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Well-maintained 4-plex totaling 3,384 square feet on a 0.1894-acre lot at 2904 Highland Avenue in McAllen, Texas. Built in 2000 with an effective year built of 2010, the property has brick construction and a shingle roof. Heating and cooling are provided by central systems, and units include electric water heaters, refrigerators, and stove/ranges. A deck is included as a patio/porch feature.
All four units are currently leased, providing immediate occupancy. Electricity is individually metered for each unit, while the property operates on a single water meter with public water service.
The property is located near Rowe High School and offers convenient access to major roadways as well as nearby shopping and dining, supporting a stable day-to-day tenant environment.
All four units are currently leased, providing immediate occupancy. Electricity is individually metered for each unit, while the property operates on a single water meter with public water service.
The property is located near Rowe High School and offers convenient access to major roadways as well as nearby shopping and dining, supporting a stable day-to-day tenant environment.
Key Highlights
- All four units are currently leased
- Electricity is individually metered; property uses a single water meter with public water
- 3,384 SF 4‑plex on a 0.1894‑acre lot
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
$30,578
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
7.94%
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%
$611,560
$611.6K
Cap Rate 7%
$436,829
$436.8K
Cap Rate 9%
$339,756
$339.8K
Market Conditions
NOI Build-Up for 3,384 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
$46.7K $13.80/SF
− Vacancy
−$3.0K −$0.89/SF
EGI
$43.7K $12.91/SF
− OpEx
−$13.1K −$3.87/SF
NOI
$30.6K $9.04/SF
Area
McAllen, TX
Vacancy
6.46%
Lease Rate
$13.80 /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%
$611,560
Cap Rate 7%
$436,829
Cap Rate 9%
$339,756
Alternative Uses
Best Use
Multifamily LT 5
$436.8K
$382.2K – $509.6K
NOI $30,578 @ 7.0% cap · market cap 7.94%
Second Best
Apartment 5plus
$401.4K
$351.3K – $468.4K
NOI $28,101 @ 7.0% cap · market cap 7.30%
Theoretical Best
Office A
$918.9K
$804.0K – $1.07M
NOI $64,323 @ 7.0% cap · market cap 16.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
499
Businesses Nearby
Explore this area
Business Placement
Demographics for 78501, TX
60,817
Population
24,807
Households
2.5
Avg Household Size
37
Median Age
27%
College-Educated
77%
High-School Grad
15.5 sq mi
ZIP Area
3,924
Density / Sq Mi
$49,451
Median Household Income
$29,092
Median Earnings
$943
Median Rent
$149,000
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?
Quadplex - Well-maintained 4-plex with all four units leased and individually metered electricity.
Where is this quadplex located?
The property is located at 2904 Highland Avenue McAllen, TX.
What is the asking price?
The asking price for this property is $385,000.
What are key features of this property?
This property features: All four units are currently leased; Electricity is individually metered; property uses a single water meter with public water; 3,384 SF 4‑plex on a 0.1894‑acre lot
