Multifamily Property in La Feria,
For Sale
$600,000
24529 FM 506, La Feria, TX 78559
Commercial Sale, LA FERIA, TX
Property Size2,800 SF
Lot Size8.00 Acres
Price / SF$214.29
Days on Market1237
Property Features for 24529 FM 506
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
MINNESOTA-TEXAS IRRIGATION LAND CO.
Standard status
Active
Size
2,800 SF
Lot size
8.00 Acres
Building Details
Year built
1957
Floors in Building
2
Listing Agency:
KELLER WILLIAMS LRGV · Keller Williams Realty
(956) 423-8877
Listed By:
ANTONIO CASAS JR.
(956) 454-7215
Added: Apr 5, 2023
Changed: Aug 19
Last Checked: Aug 23 at 8:06AM
MLS# 29740222
Copyright © 2026 Rio Grande Valley Multiple Listing Service Inc. 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.
Located in La Feria, Texas, this multifamily property features a 2,800-square-foot home with three bedrooms and two and a half bathrooms. Additionally, there is a separate 54 x 64 building containing six one-bedroom apartments, each measuring 756 square feet, with balconies on both the north and south sides. The property also includes ten RV pads situated on the north two acres, with the potential for adding more. The total lot size is 8 acres.
Key Highlights
- Multi‑family property featuring a 2,800 sq ft 3‑bedroom house and a separate building containing six 1‑bedroom apartments.
- Ten RV pads on two acres with potential for expansion.
- Each apartment has front and back balconies.
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
$21,185
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
3.53%
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%
$423,700
$423.7K
Cap Rate 7%
$302,643
$302.6K
Cap Rate 9%
$235,389
$235.4K
Market Conditions
NOI Build-Up for 2,800 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 $14.76/SF
− Vacancy
−$2.8K −$1.00/SF
EGI
$38.5K $13.76/SF
− OpEx
−$17.3K −$6.19/SF
NOI
$21.2K $7.57/SF
Area
Cameron County, TX
Vacancy
6.80%
Lease Rate
$14.76 /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%
$423,700
Cap Rate 7%
$302,643
Cap Rate 9%
$235,389
Alternative Uses
Best Use
Apartment 5plus
$302.6K
$264.8K – $353.1K
NOI $21,185 @ 7.0% cap · market cap 3.53%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$482.1K
$421.9K – $562.5K
NOI $33,748 @ 7.0% cap · market cap 5.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
7
Residential units
Location Intelligence
Trade Area within ½ mile
6
Businesses Nearby
Explore this area
Business Placement
Demographics for 78559, TX
12,533
Population
5,047
Households
2.5
Avg Household Size
37
Median Age
14%
College-Educated
72%
High-School Grad
36.3 sq mi
ZIP Area
345
Density / Sq Mi
$48,117
Median Household Income
$31,927
Median Earnings
$985
Median Rent
$99,900
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?
Apartment building - Multifamily property featuring a home, apartments, and RV pads.
Where is this apartment building located?
The property is located at 24529 FM 506 La Feria, TX.
What is the asking price?
The asking price for this property is $600,000.
What are key features of this property?
This property features: Multi‑family property featuring a 2,800 sq ft 3‑bedroom house and a separate building containing six 1‑bedroom apartments.; Ten RV pads on two acres with potential for expansion.; Each apartment has front and back balconies.
