Updated Three-Unit Multifamily
For Sale
$325,000
1504 Luzon Street, Houston, TX 77009
Updated multifamily property with included appliances and tenant occupancy in two residences.
Property Size1,880 SF
Price / SF$172.87
Days on Market15
Property Features for 1504 Luzon Street
General Information
Standard status
Active
Size
1,880 SF
Property subtype
Income
Amenities
Yes
1
2
Owner
5000
Appraiser
1880
Building Details
Building Size
1,880 SF
Year Built
1940
Stories
1
Listing Agency:
Keller Williams City View
(713) 299-7573
Listed By:
Charlotte Broesche
(713) 299-7573
Source:
Garygreene
Added: Aug 10
Changed: Aug 23
Last Checked: Aug 24 at 3:43AM
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 City View
Investment Insights
Based on property information with market context.
This multifamily property comprises three residences across two structures. The freestanding home at 1506 Luzon St. offers 2 bedrooms and 1 bath and is tenant occupied. The duplex at 1504 Luzon St. includes a 2-bedroom, 1-bath Unit B that is also occupied, along with a 1-bedroom, 1-bath Unit A currently listed for rent.
All three units have been recently updated, with a stove, refrigerator, washer, and dryer included in each residence. The property was built in 1940 and is located in Houston, Texas. Walk Score is 47, Bike Score is 44, and Transit Score is 46.
All three units have been recently updated, with a stove, refrigerator, washer, and dryer included in each residence. The property was built in 1940 and is located in Houston, Texas. Walk Score is 47, Bike Score is 44, and Transit Score is 46.
Key Highlights
- Three residential units across a freestanding home and duplex
- All units recently updated
- Stove, refrigerator, washer, and dryer included in every unit
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
$21,299
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
6.55%
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%
$425,980
$426.0K
Cap Rate 7%
$304,271
$304.3K
Cap Rate 9%
$236,656
$236.7K
Market Conditions
NOI Build-Up for 1,880 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
$41.3K $21.96/SF
− Vacancy
−$2.6K −$1.36/SF
EGI
$38.7K $20.60/SF
− OpEx
−$17.4K −$9.27/SF
NOI
$21.3K $11.33/SF
Area
Houston, TX
Vacancy
6.20%
Lease Rate
$21.96 /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%
$425,980
Cap Rate 7%
$304,271
Cap Rate 9%
$236,656
Alternative Uses
Best Use
Apartment 5plus
$304.3K
$266.2K – $355.0K
NOI $21,299 @ 7.0% cap · market cap 6.55%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$483.4K
$423.0K – $564.0K
NOI $33,840 @ 7.0% cap · market cap 10.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
726
Businesses Nearby
Explore this area
Business Placement
Demographics for 77009, TX
36,425
Population
17,890
Households
2
Avg Household Size
37
Median Age
39%
College-Educated
78%
High-School Grad
6.2 sq mi
ZIP Area
5,875
Density / Sq Mi
$81,921
Median Household Income
$49,446
Median Earnings
$1,229
Median Rent
$403,600
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Multifamily property - Updated multifamily property with included appliances and tenant occupancy in two residences.
Where is this multifamily property located?
The property is located at 1504 Luzon Street 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: Three residential units across a freestanding home and duplex; All units recently updated; Stove, refrigerator, washer, and dryer included in every unit
