Fully Occupied Fourplex
For Sale
$510,000
1425 E Iris Avenue, McAllen, TX 78501
MULTI_FAMILY - McAllen, TX
Property Size4,320 SF
Lot Size0.21 Acres
Price / SF$118.06
Days on Market85
Property Features for 1425 E Iris Avenue
General Information
Property type
Residential Multi Family
Property subtype
Other
Parking
8
Parking features
Garage
Appliances
Electric Water Heater, Dryer, Refrigerator, Stove/Range-Electric Smooth, Washer
Subdivision
Park Terrace
Lot features
Irregular Lot
Elementary school
Milam
Middle school
Cathey
High school
Memorial H.S.
Elementary school district
McAllen ISD
Middle school district
McAllen ISD
High school district
McAllen ISD
Directions
From 495/Ferguson Ave head north on Jackson Rd, turn left onto Jonquil Ave. Park Terrace subdivision will be on the left hand side.
Standard status
Active
APN
P375800000004500
Size
4,320 SF
Lot size
0.21 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
15118
HOA Fee
$500 Annually
Utilities
Heating system
Central
Cooling system
Central Air
Water source
Public
Building Details
Year built
2023
Floors in Building
1
Number of units
4
Building materials
Stucco
Roof type
Shingle
Listing Agency:
Keller Williams Realty RGV
(956) 928-1155
Listed By:
Jaime Lee Gonzalez · License #713189
(956) 599-8400
Added: Jun 8
Last Checked: Aug 31 at 9:06PM
MLS# 506697
Copyright © 2026 Greater McAllen Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This property is a fully occupied fourplex comprised of two buildings with a total of four 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 offering totals 4,320 square feet and is situated on a 0.2087-acre lot.
The address is 1425 E Iris Avenue in McAllen, Texas, within the Park Terrace subdivision. Public remarks cite convenience to DHR, the medical district, and nearby dining and retail, and describe the property as having a mid-century modern aesthetic.
For buyers seeking a residential income property, the straightforward four-unit configuration and existing full occupancy may appeal for operational simplicity. The balanced mix of 1-bedroom and 2-bedroom layouts can also support tenant needs across different household sizes, with each unit having its own bathroom count as noted in the unit mix.
The address is 1425 E Iris Avenue in McAllen, Texas, within the Park Terrace subdivision. Public remarks cite convenience to DHR, the medical district, and nearby dining and retail, and describe the property as having a mid-century modern aesthetic.
For buyers seeking a residential income property, the straightforward four-unit configuration and existing full occupancy may appeal for operational simplicity. The balanced mix of 1-bedroom and 2-bedroom layouts can also support tenant needs across different household sizes, with each unit having its own bathroom count as noted in the unit mix.
Key Highlights
- Fully occupied 4‑plex with 4 total units (two buildings)
- Unit mix: each building has one 2BD/2BA unit and one 1BD/1BA unit
- Built in 2023 with stucco construction
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
Property Profile
Current Use
Lease Details
4
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
1,113
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
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 - Two-building fourplex with a mix of 1- and 2-bedroom units, fully occupied and set in a residential subdivision.
Where is this quadplex located?
The property is located at 1425 E Iris Avenue 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: Fully occupied 4‑plex with 4 total units (two buildings); Unit mix: each building has one 2BD/2BA unit and one 1BD/1BA unit; Built in 2023 with stucco construction
