Two-Building Fourplex
For Sale
$510,000
1425 E Iris Ave, McAllen, TX 78501
Fully occupied fourplex with two buildings and a mix of one- and two-bedroom units.
Property Size4,320 SF
Price / SF$118.06
Days on Market94
Property Features for 1425 E Iris Ave
General Information
Standard status
Active
Size
4,320 SF
Property subtype
Multi-Family
Occupancy
100%
Additional Details
Business Included
Yes
Multifamily Units
4
Building Details
Year Built
2023
Tenancy
Multi
Listing Agency:
Keller Williams Realty RGV
Listed By:
Jaime Lee Gonzalez · License #713189
(956) 566-8377
Source:
Aregtx
Added: Jun 17
Changed: Sep 8
Last Checked: Sep 15 at 8:04PM
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 Keller Williams Realty RGV
Investment Insights
Based on property information with market context.
This for-sale fourplex includes two separate buildings totaling four residential units. The unit mix is consistent across both buildings, with one 2-bedroom, 2-bath unit and one 1-bedroom, 1-bath unit in each building. The property is presented as fully occupied, providing an investor an opportunity to acquire a stabilized residential income asset with an uncomplicated layout and a repeatable unit mix.
The buildings are located in the Park Terrace subdivision at the southwest corner of Jackson Road and Jonquil Avenue, at 1425 E Iris Avenue in McAllen, Texas. The property is described as being minutes from DHR and the medical district, along with nearby dining and retail destinations.
For buyers seeking a manageable residential income property, this fourplex offers straightforward operations with only four units and a balanced mix of 1- and 2-bedroom floorplans. The seller’s remarks also indicate the property is well maintained and fully leased, which may appeal to investors looking for a currently occupied asset rather than a vacancy-dependent purchase.
The buildings are located in the Park Terrace subdivision at the southwest corner of Jackson Road and Jonquil Avenue, at 1425 E Iris Avenue in McAllen, Texas. The property is described as being minutes from DHR and the medical district, along with nearby dining and retail destinations.
For buyers seeking a manageable residential income property, this fourplex offers straightforward operations with only four units and a balanced mix of 1- and 2-bedroom floorplans. The seller’s remarks also indicate the property is well maintained and fully leased, which may appeal to investors looking for a currently occupied asset rather than a vacancy-dependent purchase.
Key Highlights
- 2023‑built fourplex with two buildings and a total of four fully occupied units
- Unit mix: two 2‑bedroom/2‑bath units and two 1‑bedroom/1‑bath units (one of each per building)
- Park Terrace subdivision location at the southwest corner of Jackson Road and Jonquil Avenue
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
$39,035
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
7.65%
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%
$780,700
$780.7K
Cap Rate 7%
$557,643
$557.6K
Cap Rate 9%
$433,722
$433.7K
Market Conditions
NOI Build-Up for 4,320 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
$59.6K $13.80/SF
− Vacancy
−$3.9K −$0.89/SF
EGI
$55.8K $12.91/SF
− OpEx
−$16.7K −$3.87/SF
NOI
$39.0K $9.04/SF
Area
McAllen, TX
Vacancy
6.46%
Lease Rate
$13.80 /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%
$780,700
Cap Rate 7%
$557,643
Cap Rate 9%
$433,722
Alternative Uses
Best Use
Multifamily LT 5
$557.6K
$487.9K – $650.6K
NOI $39,035 @ 7.0% cap · market cap 7.65%
Second Best
Apartment 5plus
$512.5K
$448.4K – $597.9K
NOI $35,874 @ 7.0% cap · market cap 7.03%
Theoretical Best
Office A
$1.17M
$1.03M – $1.37M
NOI $82,115 @ 7.0% cap · market cap 16.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
4
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
1,514
Businesses Nearby
Explore this area
Business Placement
Demographics for 78501, TX
60,817
Population
24,807
Households
2.5
Avg Household Size
37
Median Age
27%
College-Educated
77%
High-School Grad
15.5 sq mi
ZIP Area
3,924
Density / Sq Mi
$49,451
Median Household Income
$29,092
Median Earnings
$943
Median Rent
$149,000
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Quadplex - Fully occupied fourplex with two buildings and a mix of one- and two-bedroom units.
Where is this quadplex located?
The property is located at 1425 E Iris Ave McAllen, 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: 2023‑built fourplex with two buildings and a total of four fully occupied units; Unit mix: two 2‑bedroom/2‑bath units and two 1‑bedroom/1‑bath units (one of each per building); Park Terrace subdivision location at the southwest corner of Jackson Road and Jonquil Avenue
