Multifamily Investment
For Sale
$249,000
Pending
1401 Cottonwood Street, Abilene, TX 79601
Five-unit residential income portfolio featuring three two-bedroom homes and two efficiency units, plus an included vacant lot.
Property Size2,728 SF
Lot Size0.67 Acres
Days on Market138
Property Features for 1401 Cottonwood Street
General Information
Standard status
Pending
Size
2,728 SF
Total Parking Spaces
5
Lot size
0.67 Acres
Property subtype
Multi-Family / Multiple Single Units
Additional Details
Multifamily Units
5
Amenities
Window Unit(s)
Wall Furnace
Carpet, Laminate
Gas Cooktop, Gas Water Heater, Refrigerator
Cable TV Available
No
Composition
One
1
Pillar/Post/Pier
Assessor
5
Wood
Building Details
Year Built
1927
Buildings
5
Listing Agency:
KW SYNERGY*
Listed By:
Zac Vines · License #0717554
(325) 899-4006
Source:
Compass
Added: Apr 23
Changed: Aug 8
Last Checked: Jul 31 at 10:41AM
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 KW SYNERGY*
Investment Insights
Based on property information with market context.
This offering presents a five-unit residential income package comprising three two-bedroom homes and two efficiency units. The configuration provides a mix of unit sizes within a single investment portfolio.
The property is located at 1401 Cottonwood Street in Abilene, Texas. The package includes a large .67-acre tract with a vacant lot that may support value-add opportunities tied to the additional land.
For buyers looking for a straightforward, multi-unit residential purchase, this portfolio provides multiple unit types under one ownership structure, along with the added flexibility of an on-site vacant lot.
The property is located at 1401 Cottonwood Street in Abilene, Texas. The package includes a large .67-acre tract with a vacant lot that may support value-add opportunities tied to the additional land.
For buyers looking for a straightforward, multi-unit residential purchase, this portfolio provides multiple unit types under one ownership structure, along with the added flexibility of an on-site vacant lot.
Key Highlights
- 5‑unit residential income portfolio on a large .67‑acre tract
- Unit mix: three 2‑bedroom homes and two efficiency units
- Vacant lot included for potential value‑add
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
$20,928
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
8.40%
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%
$418,560
$418.6K
Cap Rate 7%
$298,971
$299.0K
Cap Rate 9%
$232,533
$232.5K
Market Conditions
NOI Build-Up for 2,728 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
$40.3K $14.76/SF
− Vacancy
−$2.2K −$0.81/SF
EGI
$38.1K $13.95/SF
− OpEx
−$17.1K −$6.28/SF
NOI
$20.9K $7.67/SF
Area
Abilene, TX
Vacancy
5.50%
Lease Rate
$14.76 /SF/Yr
Expense Ratio
45.00%
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%
$418,560
Cap Rate 7%
$298,971
Cap Rate 9%
$232,533
Alternative Uses
Best Use
Apartment 5plus
$299.0K
$261.6K – $348.8K
NOI $20,928 @ 7.0% cap · market cap 8.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$609.1K
$532.9K – $710.6K
NOI $42,635 @ 7.0% cap · market cap 17.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
Location Intelligence
Trade Area within ½ mile
970
Businesses Nearby
Explore this area
Business Placement
Demographics for 79601, TX
26,515
Population
9,422
Households
2.8
Avg Household Size
32
Median Age
21%
College-Educated
84%
High-School Grad
263.0 sq mi
ZIP Area
101
Density / Sq Mi
$54,515
Median Household Income
$24,704
Median Earnings
$988
Median Rent
$182,900
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?
Apartment building - Five-unit residential income portfolio featuring three two-bedroom homes and two efficiency units, plus an included vacant lot.
Where is this apartment building located?
The property is located at 1401 Cottonwood Street Abilene, TX.
What is the asking price?
The asking price for this property is $249,000.
What are key features of this property?
This property features: 5‑unit residential income portfolio on a large .67‑acre tract; Unit mix: three 2‑bedroom homes and two efficiency units; Vacant lot included for potential value‑add
