Occupied Four-Unit Investment
For Sale
$299,900
7405 Waco Avenue, Lubbock, TX 79423
Residential Income, Lubbock, TX
Property Size3,048 SF
Lot Size0.24 Acres
Price / SF$98.39
Days on Market63
Property Features for 7405 Waco Avenue
General Information
Property type
Residential Multi Family
Property subtype
Quadruplex
Bedrooms
8
Bathrooms
4
Full bathrooms
4
Rooms
Bathroom 2, Bathroom 3, Bedroom 1, Bedroom 8, Bedroom 4, Bedroom 7, Bathroom 1, Bathroom 4, Bedroom 5, Bedroom 2, Bedroom 6, Bedroom 3
Parking features
Parking Lot
Interior features
Ceiling Fan(s)
Exterior features
Balcony
Fireplace
1
Elementary school
Roberts
Middle school
Atkins
High school
Monterey
Elementary school district
Lubbock ISD
Middle school district
Lubbock ISD
High school district
Lubbock ISD
Subdivision
6
Standard status
Active
APN
R82493
Size
3,048 SF
Lot size
0.24 Acres
Taxes and HOA fees
Tax Description
Sandlewood Village L 12
Tax Annual Amount
3622
Legal Description
Sandlewood Village L 12
Utilities
Heating system
Natural Gas
Cooling system
Multi Units, Electric
Building Details
Year built
1983
Floors in Building
2
Building materials
Stucco
Roof type
Composition
Listing Agency:
Williams & Company Real Estate
(806) 860-6945
Listed By:
Cameron Seale · License #0688378
(806) 773-0821
Added: Jul 1
Changed: Aug 24
Last Checked: Sep 1 at 4:06PM
MLS# 202608970
Copyright © 2026 Lubbock 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.
This 1983 quadplex contains 3,048 square feet on a 0.24-acre lot, with four bathrooms and eight bedrooms across the property. Exterior construction is stucco, with composition roofing, natural-gas heating, electric cooling served by multiple units, and a fireplace. A parking lot and balcony add practical property features.
The property is located just off University Avenue and near South Loop 289 in South Lubbock. Texas Tech, restaurants, and shopping are identified nearby, with access to major roads from the surrounding area. The quadplex is 100% occupied and professionally managed, and it may be acquired as part of a package with 7401 Ave X and 7405 Ave X.
The property is located just off University Avenue and near South Loop 289 in South Lubbock. Texas Tech, restaurants, and shopping are identified nearby, with access to major roads from the surrounding area. The quadplex is 100% occupied and professionally managed, and it may be acquired as part of a package with 7401 Ave X and 7405 Ave X.
Key Highlights
- Four‑unit quadplex with 3,048 square feet
- 100% occupied and professionally managed
- Built in 1983 on a 0.24‑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
$27,530
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
9.18%
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%
$550,600
$550.6K
Cap Rate 7%
$393,286
$393.3K
Cap Rate 9%
$305,889
$305.9K
Market Conditions
NOI Build-Up for 3,048 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
$42.1K $13.80/SF
− Vacancy
−$2.7K −$0.90/SF
EGI
$39.3K $12.90/SF
− OpEx
−$11.8K −$3.87/SF
NOI
$27.5K $9.03/SF
Area
Lubbock, TX
Vacancy
6.50%
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%
$550,600
Cap Rate 7%
$393,286
Cap Rate 9%
$305,889
Alternative Uses
Best Use
Multifamily LT 5
$393.3K
$344.1K – $458.8K
NOI $27,530 @ 7.0% cap · market cap 9.18%
Second Best
Apartment 5plus
$353.1K
$309.0K – $412.0K
NOI $24,719 @ 7.0% cap · market cap 8.24%
Theoretical Best
Office A
$768.4K
$672.4K – $896.5K
NOI $53,789 @ 7.0% cap · market cap 17.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
100%
Occupancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
542
Businesses Nearby
Explore this area
Business Placement
Demographics for 79423, TX
42,311
Population
18,463
Households
2.3
Avg Household Size
35
Median Age
38%
College-Educated
94%
High-School Grad
64.2 sq mi
ZIP Area
659
Density / Sq Mi
$82,906
Median Household Income
$45,520
Median Earnings
$1,284
Median Rent
$222,500
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Quadplex - Professionally managed with full occupancy and balcony features.
Where is this quadplex located?
The property is located at 7405 Waco Avenue Lubbock, TX.
What is the asking price?
The asking price for this property is $299,900.
What are key features of this property?
This property features: Four‑unit quadplex with 3,048 square feet; 100% occupied and professionally managed; Built in 1983 on a 0.24‑acre lot
