Brand-New Fourplex with
For Sale
$510,000
105 E Royal Palm Drive, Mercedes, TX 78570
MULTI_FAMILY - Mercedes, TX
Property Size4,400 SF
Lot Size0.23 Acres
Price / SF$115.91
Days on Market38
Property Features for 105 E Royal Palm Drive
General Information
Property type
Residential Multi Family
Property subtype
Other
Property condition
Under Construction
Parking
8
Parking features
Other
Appliances
Electric Water Heater, Dryer, Microwave, Refrigerator, Stove/Range, Washer
Subdivision
Summer Breeze
Lot features
Curb & Gutters
Elementary school
JFK
Middle school
Mercedes Junior High
High school
Mercedes H.S.
Elementary school district
Mercedes ISD
Middle school district
Mercedes ISD
High school district
Mercedes ISD
Directions
From expressway 83 head toward Mercedes, exit at Texas Avenue (FM 491), continue north on Texas Avenue, turn right onto East 2nd Street, then turn right onto Royal Palm Drive.
Standard status
Active
APN
S685100000005600
Size
4,400 SF
Lot size
0.23 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
100
HOA Fee
$680 Annually
Utilities
Heating system
Central
Cooling system
Central Air
Water source
Public
Building Details
Year built
2025
Floors in Building
1
Number of units
4
Building materials
Stucco
Listing Agency:
Effective Real Estate
(956) 322-8522
Listed By:
Ryan J. Mcdaniel
(956) 299-2111
Added: Jul 7
Last Checked: Aug 13 at 8:06AM
MLS# 494892
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.
This brand-new fourplex is fully built and rent-ready, offering four separate, single-family-style homes. Each unit features a spacious 3-bedroom, 2-bath layout designed for practical everyday living. Appliances are included, and each unit also has a carport, supporting convenient tenant parking and a more turnkey setup for the owner.
The property is located at 105 E Royal Palm Drive in Mercedes, Texas, with quick access to Expressway 83 about two minutes away. It is situated in a quieter neighborhood setting near the Livestock Show Grounds and the Rio Grande Valley Outlets, balancing accessibility with a residential feel.
For investors or owner-occupants, the combination of a fully constructed, income-oriented four-unit structure and included appliances and carports can simplify operations from day one. The consistent unit mix across all four homes may also appeal to buyers seeking straightforward management of similar layouts while leveraging a contemporary, ready-to-lease configuration.
The property is located at 105 E Royal Palm Drive in Mercedes, Texas, with quick access to Expressway 83 about two minutes away. It is situated in a quieter neighborhood setting near the Livestock Show Grounds and the Rio Grande Valley Outlets, balancing accessibility with a residential feel.
For investors or owner-occupants, the combination of a fully constructed, income-oriented four-unit structure and included appliances and carports can simplify operations from day one. The consistent unit mix across all four homes may also appeal to buyers seeking straightforward management of similar layouts while leveraging a contemporary, ready-to-lease configuration.
Key Highlights
- New construction (2025) fourplex in Mercedes, TX, reported as fully built and rent‑ready
- Four units total, each with a 3‑bedroom and 2‑bath single‑family‑style layout
- Central heating and central air in all units
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
$38,478
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
7.54%
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%
$769,560
$769.6K
Cap Rate 7%
$549,686
$549.7K
Cap Rate 9%
$427,533
$427.5K
Market Conditions
NOI Build-Up for 4,400 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
$61.8K $14.04/SF
− Vacancy
−$6.8K −$1.55/SF
EGI
$55.0K $12.49/SF
− OpEx
−$16.5K −$3.75/SF
NOI
$38.5K $8.74/SF
Area
Hidalgo County, TX
Vacancy
11.02%
Lease Rate
$14.04 /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%
$769,560
Cap Rate 7%
$549,686
Cap Rate 9%
$427,533
Alternative Uses
Best Use
Multifamily LT 5
$549.7K
$481.0K – $641.3K
NOI $38,478 @ 7.0% cap · market cap 7.54%
Second Best
Apartment 5plus
$506.1K
$442.8K – $590.4K
NOI $35,426 @ 7.0% cap · market cap 6.95%
Theoretical Best
Hotel Hospitality
$3.31M
$2.90M – $3.87M
NOI $231,990 @ 7.0% cap · market cap 45.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
270
Businesses Nearby
Explore this area
Business Placement
Demographics for 78570, TX
32,950
Population
10,701
Households
3.1
Avg Household Size
30
Median Age
12%
College-Educated
61%
High-School Grad
75.2 sq mi
ZIP Area
438
Density / Sq Mi
$39,890
Median Household Income
$22,648
Median Earnings
$686
Median Rent
$83,400
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 - Newly built, rent-ready fourplex featuring four private 3-bedroom, 2-bath units with appliances and carports included.
Where is this quadplex located?
The property is located at 105 E Royal Palm Drive Mercedes, TX.
What is the asking price?
The asking price for this property is $510,000.
What are key features of this property?
This property features: New construction (2025) fourplex in Mercedes, TX, reported as fully built and rent‑ready; Four units total, each with a 3‑bedroom and 2‑bath single‑family‑style layout; Central heating and central air in all units
