Updated Duplex with Leased
For Sale
$325,000
1408 Edward Dr, South Houston, TX 77587
Two-bedroom units feature refreshed kitchens, bathrooms, and flooring.
Property Size1,998 SF
Price / SF$162.66
Days on Market24
Property Features for 1408 Edward Dr
General Information
Standard status
Active
Size
1,998 SF
Property subtype
Multi-Family
Units
Unit Mix
2 x 2BR/1.5BA
Multifamily Units
2
Additional Details
Highway Access
Yes
Building Details
Year Built
1980
Buildings
1
Listing Agency:
Keller Williams Houston Central
(832) 731-3158
Listed By:
Teresa Martinez · License #0475902
Source:
Doorstephomegroup
Added: Aug 7
Changed: Aug 28
Last Checked: Aug 29 at 12:26PM
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 Houston Central
Investment Insights
Based on property information with market context.
This duplex contains two units, each with 2 bedrooms and 1.5 baths. Interior updates include flooring, kitchens, and bathrooms, while the property also has a recent roof replacement and a backyard. Both units are currently subject to lease contracts, which must be honored upon purchase. The building was constructed in 1980.
The property is within walking distance of LF Smith Elementary School and is surrounded by residential neighborhoods. Spencer Hwy, grocery stores, and shopping centers are nearby, with access to I-45 and Beltway 8 South within minutes.
The property is within walking distance of LF Smith Elementary School and is surrounded by residential neighborhoods. Spencer Hwy, grocery stores, and shopping centers are nearby, with access to I-45 and Beltway 8 South within minutes.
Key Highlights
- Both units are currently under lease contracts that must be honored upon purchase
- Each unit offers 2 bedrooms and 1.5 baths
- Updated flooring, kitchens, and bathrooms
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
$15,268
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
4.70%
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%
$305,360
$305.4K
Cap Rate 7%
$218,114
$218.1K
Cap Rate 9%
$169,644
$169.6K
Market Conditions
NOI Build-Up for 1,998 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
$24.0K $12.00/SF
− Vacancy
−$2.2K −$1.08/SF
EGI
$21.8K $10.92/SF
− OpEx
−$6.5K −$3.27/SF
NOI
$15.3K $7.64/SF
Area
Harris County, TX
Vacancy
9.03%
Lease Rate
$12.00 /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%
$305,360
Cap Rate 7%
$218,114
Cap Rate 9%
$169,644
Alternative Uses
Best Use
Multifamily LT 5
$218.1K
$190.9K – $254.5K
NOI $15,268 @ 7.0% cap · market cap 4.70%
Second Best
Apartment 5plus
$189.2K
$165.6K – $220.8K
NOI $13,247 @ 7.0% cap · market cap 4.08%
Theoretical Best
Office A
$545.6K
$477.4K – $636.5K
NOI $38,189 @ 7.0% cap · market cap 11.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
913
Businesses Nearby
Explore this area
Business Placement
Demographics for 77587, TX
16,179
Population
5,549
Households
2.9
Avg Household Size
32
Median Age
9%
College-Educated
60%
High-School Grad
3.1 sq mi
ZIP Area
5,219
Density / Sq Mi
$52,407
Median Household Income
$30,669
Median Earnings
$1,174
Median Rent
$177,000
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 - Two-bedroom units feature refreshed kitchens, bathrooms, and flooring.
Where is this duplex located?
The property is located at 1408 Edward Dr South Houston, TX.
What is the asking price?
The asking price for this property is $325,000.
What are key features of this property?
This property features: Both units are currently under lease contracts that must be honored upon purchase; Each unit offers 2 bedrooms and 1.5 baths; Updated flooring, kitchens, and bathrooms
