Multifamily Property Near Baylor
For Sale
$1,850,000
1902 S 8th St, Waco, TX 76706
Well-maintained multifamily property near Baylor University with recent updates.
Property Size6,889 SF
Days on Market104
Property Features for 1902 S 8th St
General Information
Standard status
Active
Size
6,889 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$13,535
Building Details
Building Size
6,889 SF
Year Built
1998
Listing Agency:
Compass RE Texas, LLC
(512) 966-9781
Listed By:
Kristofer Kasper · License #0609931
(512) 966-9781
Source:
Elliman
Added: May 21
Changed: Aug 31
Last Checked: Aug 30 at 9:13PM
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 Compass RE Texas, LLC
Investment Insights
Based on property information with market context.
This well-maintained multifamily property is situated in a location near Baylor University, offering visibility and accessibility. Recent updates include a roof, fresh exterior paint, durable Hardiplank sheathing, modern vinyl plank flooring, security lighting, and updated entry pads. The property offers the possibility of converting to condominiums and selling units individually. The property is located in a somewhat walkable and bikeable area, with a walk score of 56 and a bike score of 56.
Key Highlights
- Strong 7% Cap Rate: Provides immediate and substantial return on investment.
- Highly Sought‑After Location Near Baylor University: Ensures consistent demand and excellent visibility.
- Future Condominium Conversion Potential: Offers a high‑value exit strategy.
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
$54,908
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
2.97%
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%
$1,098,160
$1.1M
Cap Rate 7%
$784,400
$784.4K
Cap Rate 9%
$610,089
$610.1K
Market Conditions
NOI Build-Up for 6,889 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
$109.9K $15.96/SF
− Vacancy
−$10.1K −$1.47/SF
EGI
$99.8K $14.49/SF
− OpEx
−$44.9K −$6.52/SF
NOI
$54.9K $7.97/SF
Area
Waco, TX
Vacancy
9.20%
Lease Rate
$15.96 /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%
$1,098,160
Cap Rate 7%
$784,400
Cap Rate 9%
$610,089
Alternative Uses
Best Use
Apartment 5plus
$784.4K
$686.4K – $915.1K
NOI $54,908 @ 7.0% cap · market cap 2.97%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.82M
$1.59M – $2.12M
NOI $127,226 @ 7.0% cap · market cap 6.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
552
Businesses Nearby
Explore this area
Business Placement
Demographics for 76706, TX
39,303
Population
16,600
Households
2.4
Avg Household Size
27
Median Age
23%
College-Educated
85%
High-School Grad
72.3 sq mi
ZIP Area
544
Density / Sq Mi
$42,277
Median Household Income
$23,954
Median Earnings
$1,063
Median Rent
$180,600
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?
Apartment building - Well-maintained multifamily property near Baylor University with recent updates.
Where is this apartment building located?
The property is located at 1902 S 8th St Waco, TX.
What is the asking price?
The asking price for this property is $1,850,000.
What are key features of this property?
This property features: Strong 7% Cap Rate: Provides immediate and substantial return on investment.; Highly Sought‑After Location Near Baylor University: Ensures consistent demand and excellent visibility.; Future Condominium Conversion Potential: Offers a high‑value exit strategy.
