Sam Houston Heights
For Sale
Contact for pricing
1208 S Diplomat Drive, Pharr, TX 78577
Fourplex in prime location with assumable low-interest FHA loan.
Property Size3,692 SF
Price / SF$98.86
Days on Market567
Property Features for 1208 S Diplomat Drive
General Information
Standard status
Active
Size
3,692 SF
Total Parking Spaces
8
Property subtype
Multifamily
Building Details
Year Built
2006
Buildings
2
Units
4
Listing Agency:
Element Realty, LLC
Listed By:
Janet Wallace
Source:
Crexi
Added: Feb 10, 2025
Changed: Aug 15
Last Checked: Aug 31 at 5:29AM
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 Element Realty, LLC
Investment Insights
Based on property information with market context.
This fourplex is located in Sam Houston Heights. The property generates an annual gross income of $41,400. It is situated off Frontage Rd, near Top Golf, upscale restaurants, and McAllen medical centers. Recent updates include a new outside A/C unit in Apartment #4 and new tankless water heaters for all four units installed in 2024. Apartments #2 and #4 have been remodeled with updated fixtures, modern faucets, freshly painted cabinets, and contemporary ceiling fans. The property presents a rare opportunity to assume an FHA loan at 2.89% interest with an approximate balance of $248,000, subject to lender approval. The property size is 3,692 square feet.
Key Highlights
- Opportunity to assume an FHA loan at 2.89% interest (approx. $248K balance, subject to lender approval).
- Fourplex generates an annual gross income of $41,400.
- Prime location in Sam Houston Heights near Top Golf, upscale restaurants, and McAllen medical centers.
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
$32,286
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
8.85%
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%
$645,720
$645.7K
Cap Rate 7%
$461,229
$461.2K
Cap Rate 9%
$358,733
$358.7K
Market Conditions
NOI Build-Up for 3,692 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
$51.8K $14.04/SF
− Vacancy
−$5.7K −$1.55/SF
EGI
$46.1K $12.49/SF
− OpEx
−$13.8K −$3.75/SF
NOI
$32.3K $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%
$645,720
Cap Rate 7%
$461,229
Cap Rate 9%
$358,733
Alternative Uses
Best Use
Multifamily LT 5
$461.2K
$403.6K – $538.1K
NOI $32,286 @ 7.0% cap · market cap 8.85%
Second Best
Apartment 5plus
$424.7K
$371.6K – $495.4K
NOI $29,726 @ 7.0% cap · market cap 8.14%
Theoretical Best
Hotel Hospitality
$2.78M
$2.43M – $3.24M
NOI $194,661 @ 7.0% cap · market cap 53.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
853
Businesses Nearby
Explore this area
Business Placement
Demographics for 78577, TX
79,937
Population
26,568
Households
3
Avg Household Size
30
Median Age
18%
College-Educated
70%
High-School Grad
26.0 sq mi
ZIP Area
3,075
Density / Sq Mi
$49,768
Median Household Income
$28,186
Median Earnings
$988
Median Rent
$111,500
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 - Fourplex in prime location with assumable low-interest FHA loan.
Where is this quadplex located?
The property is located at 1208 S Diplomat Drive Pharr, TX.
What is the asking price?
The asking price for this property is $365,000.
What are key features of this property?
This property features: Opportunity to assume an FHA loan at 2.89% interest (approx. $248K balance, subject to lender approval).; Fourplex generates an annual gross income of $41,400.; Prime location in Sam Houston Heights near Top Golf, upscale restaurants, and McAllen medical centers.
