Two-Unit Duplex with Rental
For Sale
$179,900
10837 Palmas Street, Mercedes, TX 78570
One unit is occupied, while the second is vacant for occupancy or lease-up.
Property Size1,440 SF
Days on Market22
Property Features for 10837 Palmas Street
General Information
Standard status
Active
Size
1,440 SF
Total Parking Spaces
2
Property subtype
Multi Family Home
Taxes and HOA fees
Annual Taxes
$1,720
Building Details
Building Size
1,440 SF
Year Built
1984
Buildings
1
Stories
1
Units
2
Listing Agency:
Longoria Realty LLC
(956) 515-4124
Listed By:
Linda Palacios
(956) 515-4124
Source:
Buyingandsellingmcallen
Added: Aug 10
Changed: Aug 29
Last Checked: Aug 30 at 5:45PM
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 Longoria Realty LLC
Investment Insights
Based on property information with market context.
This duplex contains two 2-bedroom, 1-bath units within a functional layout. One unit is currently occupied, while the other is vacant and ready for occupancy or lease-up. Constructed in 1984, the property sits on a 7,200 sq ft lot.
The property is located near schools, shopping, and expressway access in Mercedes, Texas. Its two-unit configuration also accommodates the stated option of living in one unit while renting the other.
The property is located near schools, shopping, and expressway access in Mercedes, Texas. Its two-unit configuration also accommodates the stated option of living in one unit while renting the other.
Key Highlights
- Two 2‑bedroom, 1‑bath units
- One unit currently occupied and producing rental income
- Second unit is vacant and ready for occupancy or lease‑up
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
$12,593
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
7.00%
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%
$251,860
$251.9K
Cap Rate 7%
$179,900
$179.9K
Cap Rate 9%
$139,922
$139.9K
Market Conditions
NOI Build-Up for 1,440 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
$20.2K $14.04/SF
− Vacancy
−$2.2K −$1.55/SF
EGI
$18.0K $12.49/SF
− OpEx
−$5.4K −$3.75/SF
NOI
$12.6K $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%
$251,860
Cap Rate 7%
$179,900
Cap Rate 9%
$139,922
Alternative Uses
Best Use
Multifamily LT 5
$179.9K
$157.4K – $209.9K
NOI $12,593 @ 7.0% cap · market cap 7.00%
Second Best
Apartment 5plus
$165.6K
$144.9K – $193.2K
NOI $11,594 @ 7.0% cap · market cap 6.44%
Theoretical Best
Hotel Hospitality
$1.08M
$949.1K – $1.27M
NOI $75,924 @ 7.0% cap · market cap 42.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
17
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
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Frequently Asked Questions
What type of property is this?
Duplex - One unit is occupied, while the second is vacant for occupancy or lease-up.
Where is this duplex located?
The property is located at 10837 Palmas Street Mercedes, TX.
What is the asking price?
The asking price for this property is $179,900.
What are key features of this property?
This property features: Two 2‑bedroom, 1‑bath units; One unit currently occupied and producing rental income; Second unit is vacant and ready for occupancy or lease‑up
