Houston Fourplex with Development
For Sale
$479,900
Pending
2511 Rosalie Street, Houston, TX 77004
Fully leased fourplex with development potential in Houston's Third Ward.
Property Size2,712 SF
Days on Market325
Property Features for 2511 Rosalie Street
General Information
Standard status
Pending
Size
2,712 SF
Property subtype
Multi Family,Quadruplex
Taxes and HOA fees
Annual Taxes
$6,870
Building Details
Building Size
2,712 SF
Year Built
1948
Listing Agency:
Dalton Wade Inc
Listed By:
Marty Boyle
(832) 229-8759
Source:
Greenwoodking
Added: Oct 14, 2025
Changed: Aug 28
Last Checked: Aug 24 at 1:41PM
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 Dalton Wade Inc
Investment Insights
Based on property information with market context.
This property presents a rare opportunity in Houston’s Third Ward. It features a fully leased fourplex, with each unit containing 2 bedrooms and 1 bathroom. The property is paired with an adjoining 2,550 square foot lot, offering the flexibility to expand or potentially develop additional units. The location is near Emancipation Park, the University of Houston, Texas Southern University, Midtown, and Downtown, benefiting from strong rental demand and ongoing redevelopment. Recent updates include fresh paint, flooring, A/C units, a metal gate, and a security system. The property is turnkey with minimal deferred maintenance, offering solid cash flow and long-term upside in Houston’s urban core.
Key Highlights
- Fully leased fourplex providing immediate cash flow.
- Adjoining 2,550 SF lot offers expansion or development potential.
- Prime location near Emancipation Park, UofH, TSU, Midtown, and Downtown Houston.
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
$35,521
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
7.40%
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%
$710,420
$710.4K
Cap Rate 7%
$507,443
$507.4K
Cap Rate 9%
$394,678
$394.7K
Market Conditions
NOI Build-Up for 2,712 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
$53.7K $19.80/SF
− Vacancy
−$3.0K −$1.09/SF
EGI
$50.7K $18.71/SF
− OpEx
−$15.2K −$5.61/SF
NOI
$35.5K $13.10/SF
Area
Houston, TX
Vacancy
5.50%
Lease Rate
$19.80 /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%
$710,420
Cap Rate 7%
$507,443
Cap Rate 9%
$394,678
Alternative Uses
Best Use
Multifamily LT 5
$507.4K
$444.0K – $592.0K
NOI $35,521 @ 7.0% cap · market cap 7.40%
Second Best
Apartment 5plus
$438.9K
$384.1K – $512.1K
NOI $30,725 @ 7.0% cap · market cap 6.40%
Theoretical Best
Office A
$697.4K
$610.2K – $813.6K
NOI $48,816 @ 7.0% cap · market cap 10.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
997
Businesses Nearby
Explore this area
Business Placement
Demographics for 77004, TX
37,005
Population
18,321
Households
2
Avg Household Size
31
Median Age
57%
College-Educated
96%
High-School Grad
5.2 sq mi
ZIP Area
7,116
Density / Sq Mi
$65,901
Median Household Income
$55,909
Median Earnings
$1,320
Median Rent
$384,100
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 - Fully leased fourplex with development potential in Houston's Third Ward.
Where is this quadplex located?
The property is located at 2511 Rosalie Street Houston, TX.
What is the asking price?
The asking price for this property is $479,900.
What are key features of this property?
This property features: Fully leased fourplex providing immediate cash flow.; Adjoining 2,550 SF lot offers expansion or development potential.; Prime location near Emancipation Park, UofH, TSU, Midtown, and Downtown Houston.
