Building Details

Building Size 2,238 SF

Year Built 1946

Stories 1

Listing Agency: Fultz Realty, LLC Show Phone

Listed By: Donna Hubbell Lentz Show Phone

Source: Garygreene

Added: May 1 Changed: Sep 12 Last Checked: Sep 13 at 4:41AM

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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 Fultz Realty, LLC

Investment Insights

Based on property information with market context.

Welcome to a newly renovated, fully furnished triplex designed for immediate occupancy. The main residence offers modern finishes with an open-concept living layout, durable luxury vinyl flooring, and an updated kitchen with granite countertops and a cooktop.

The two additional units are each configured with 2 bedrooms and 1 bathroom, and are also fully furnished and move-in ready.

This property is comprised of two lots identified by tax account numbers 058-261-000-0004 and 058-261-000-0011. Located in Highlands, Texas, it is described as just minutes from Houston and is available for sale as a turnkey, multi-unit offering.

Key Highlights

• Newly renovated, fully furnished triplex at 203 S 5th St with immediate income potential.
• 3 units total: main residence plus two additional units, each with 2 bedrooms and 1 bathroom.
• Updated kitchen with granite countertops and a cooktop; furnished interior with window coverings.

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

$17,102

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

3.11%

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%

$342,040 $342.0K

Cap Rate 7%

$244,314 $244.3K

Cap Rate 9%

$190,022 $190.0K

Market Conditions

NOI Build-Up for 2,238 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

$26.9K $12.00/SF

− Vacancy

−$2.4K −$1.08/SF

EGI

$24.4K $10.92/SF

− OpEx

−$7.3K −$3.27/SF

NOI

$17.1K $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%

$342,040

Cap Rate 7%

$244,314

Cap Rate 9%

$190,022

Alternative Uses

Best Use

Multifamily LT 5

$244.3K

$213.8K – $285.0K (±1% cap)

NOI $17,102 @ 7.0% cap · market cap 3.11%

Second Best

Apartment 5plus

$212.0K

$185.5K – $247.3K (±1% cap)

NOI $14,838 @ 7.0% cap · market cap 2.70%

Theoretical Best

Office A

$611.1K

$534.7K – $712.9K (±1% cap)

NOI $42,776 @ 7.0% cap · market cap 7.78%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Triplexes

Suggested Use

Top Pick Real Estate Agency Law Firm Parking Lot & Garage HVAC Service Dental Office Pharmacy

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

3

Residential units

Location Intelligence

Trade Area within ½ mile

340

Businesses Nearby

Explore this area Business Placement

Demographics for 77562, TX

11,861

Population

4,184

Households

2.8

Avg Household Size

38

Median Age

12%

College-Educated

81%

High-School Grad

13.5 sq mi

ZIP Area

879

Density / Sq Mi

$63,636

Median Household Income

$39,712

Median Earnings

$1,190

Median Rent

$195,300

Median Home Value

Market

Vacancy Rate% for Multifamily in South region

8.5% 2022

10.2% 2023

11.4% 2024

11.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this triplexes located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Triplex - Newly renovated, fully furnished triplex with three 2-bedroom, 1-bath units and an updated kitchen featuring granite countertops.

Where is this triplex located?

The property is located at 203 S 5th Street Highlands, TX.

What is the asking price?

The asking price for this property is $550,000.

What are key features of this property?

This property features: Newly renovated, fully furnished triplex at 203 S 5th St with immediate income potential.; 3 units total: main residence plus two additional units, each with 2 bedrooms and 1 bathroom.; Updated kitchen with granite countertops and a cooktop; furnished interior with window coverings.