Three-Unit Residential Income
For Sale
$250,000
Pending
1018 Merchant Street, Abilene, TX 79603
Triplex with one 3-bedroom unit and two 2-bedroom units, currently generating income on month-to-month leases.
Property Size2,814 SF
Days on Market102
Property Features for 1018 Merchant Street
General Information
Standard status
Pending
Size
2,814 SF
Total Parking Spaces
4
Property subtype
Multi-Family / Triplex
Additional Details
Business Included
Yes
Multifamily Units
3
Amenities
Central Air, Electric
Central, Electric
Other
Cable TV Available, Other
No
Composition
One
Wood
1
Pillar/Post/Pier, Slab
Public Records
3
Frame, Siding
Building Details
Year Built
1946
Buildings
2
Tenancy
Multi
Listing Agency:
Coldwell Banker Apex, REALTORS
Listed By:
Chad Chaney · License #0588387
(325) 725-6641
Source:
Compass
Added: May 30
Changed: Aug 8
Last Checked: Aug 5 at 12:39PM
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 Coldwell Banker Apex, REALTORS
Investment Insights
Based on property information with market context.
This triplex for sale includes three rental units. One unit is a 3-bedroom, 1-bath layout with parking in the front. The other two units are each 2-bedroom, 1-bath, and are accessed via the alley.
The property is located at 1018 Merchant Street in Abilene, Texas. Parking is provided at the front for the 3-bedroom unit, while the rear units use alley access, creating separate practical entry points for tenants.
The current tenant setup is income-producing, with leases on a month-to-month basis. This can appeal to an owner seeking a residential income property with multiple unit configurations, plus the flexibility that comes with month-to-month occupancy for the existing leases.
The property is located at 1018 Merchant Street in Abilene, Texas. Parking is provided at the front for the 3-bedroom unit, while the rear units use alley access, creating separate practical entry points for tenants.
The current tenant setup is income-producing, with leases on a month-to-month basis. This can appeal to an owner seeking a residential income property with multiple unit configurations, plus the flexibility that comes with month-to-month occupancy for the existing leases.
Key Highlights
- 3‑unit triplex: one 3‑bedroom/1‑bath unit and two 2‑bedroom/1‑bath units
- Month‑to‑month leases in place; property is currently income producing
- Single‑story (1) frame with siding construction and composition roof
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
$21,588
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
8.64%
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%
$431,760
$431.8K
Cap Rate 7%
$308,400
$308.4K
Cap Rate 9%
$239,867
$239.9K
Market Conditions
NOI Build-Up for 2,814 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
$41.5K $14.76/SF
− Vacancy
−$2.3K −$0.81/SF
EGI
$39.3K $13.95/SF
− OpEx
−$17.7K −$6.28/SF
NOI
$21.6K $7.67/SF
Area
Abilene, TX
Vacancy
5.50%
Lease Rate
$14.76 /SF/Yr
Expense Ratio
45.00%
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%
$431,760
Cap Rate 7%
$308,400
Cap Rate 9%
$239,867
Alternative Uses
Best Use
Multifamily LT 5
$333.3K
$291.6K – $388.8K
NOI $23,330 @ 7.0% cap · market cap 9.33%
Second Best
Apartment 5plus
$308.4K
$269.9K – $359.8K
NOI $21,588 @ 7.0% cap · market cap 8.64%
Theoretical Best
Office A
$628.3K
$549.7K – $733.0K
NOI $43,979 @ 7.0% cap · market cap 17.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
704
Businesses Nearby
Explore this area
Business Placement
Demographics for 79603, TX
23,746
Population
9,960
Households
2.4
Avg Household Size
35
Median Age
17%
College-Educated
83%
High-School Grad
59.2 sq mi
ZIP Area
401
Density / Sq Mi
$53,579
Median Household Income
$32,339
Median Earnings
$1,022
Median Rent
$114,000
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?
Triplex - Triplex with one 3-bedroom unit and two 2-bedroom units, currently generating income on month-to-month leases.
Where is this triplex located?
The property is located at 1018 Merchant Street Abilene, TX.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: 3‑unit triplex: one 3‑bedroom/1‑bath unit and two 2‑bedroom/1‑bath units; Month‑to‑month leases in place; property is currently income producing; Single‑story (1) frame with siding construction and composition roof
