Renovated 4-Unit
For Sale
$360,000
2601 - 2603 Summer Avenue, Waco, TX 76708
Updated apartments offer included appliances and a varied bedroom configuration for residential rental use.
Property Size2,876 SF
Days on Market59
Property Features for 2601 - 2603 Summer Avenue
General Information
Standard status
Active
Size
2,876 SF
Property subtype
Quadruplex
Building Details
Building Size
2,876 SF
Year Built
1949
Tenancy
Multi
Listing Agency:
eXp Realty - Austin
Listed By:
Lauren Rohr · License #0716656
(254) 630-0997
Source:
Whitelabelrealty
Added: Jul 24
Changed: Sep 14
Last Checked: Sep 19 at 11:47AM
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 eXp Realty - Austin
Investment Insights
Based on property information with market context.
This four-unit quadplex at 2601 - 2603 Summer Avenue was built in 1949 and has undergone renovation. The property contains 6 bedrooms and 4 bathrooms across two 2-bedroom, 1-bath units and two 1-bedroom, 1-bath units. Appliances are included in each unit, supporting a straightforward residential setup.
The property is approximately 12 minutes from Magnolia Market at the Silos and Downtown Waco, with Baylor University about 13 minutes away. Its Waco location also places the property near shopping, dining, and major employers, as described in the listing information.
The property is approximately 12 minutes from Magnolia Market at the Silos and Downtown Waco, with Baylor University about 13 minutes away. Its Waco location also places the property near shopping, dining, and major employers, as described in the listing information.
Key Highlights
- Four‑unit multifamily property with 6 bedrooms and 4 bathrooms
- Unit mix includes two 2‑bedroom, 1‑bath units and two 1‑bedroom, 1‑bath units
- Renovated property built in 1949
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
$24,913
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
6.92%
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%
$498,260
$498.3K
Cap Rate 7%
$355,900
$355.9K
Cap Rate 9%
$276,811
$276.8K
Market Conditions
NOI Build-Up for 2,876 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
$39.0K $13.56/SF
− Vacancy
−$3.4K −$1.19/SF
EGI
$35.6K $12.37/SF
− OpEx
−$10.7K −$3.71/SF
NOI
$24.9K $8.66/SF
Area
Waco, TX
Vacancy
8.74%
Lease Rate
$13.56 /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%
$498,260
Cap Rate 7%
$355,900
Cap Rate 9%
$276,811
Alternative Uses
Best Use
Multifamily LT 5
$355.9K
$311.4K – $415.2K
NOI $24,913 @ 7.0% cap · market cap 6.92%
Second Best
Apartment 5plus
$327.5K
$286.5K – $382.1K
NOI $22,923 @ 7.0% cap · market cap 6.37%
Theoretical Best
Office A
$758.8K
$663.9K – $885.2K
NOI $53,114 @ 7.0% cap · market cap 14.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
211
Businesses Nearby
Explore this area
Business Placement
Demographics for 76708, TX
28,499
Population
11,241
Households
2.5
Avg Household Size
35
Median Age
25%
College-Educated
85%
High-School Grad
48.1 sq mi
ZIP Area
592
Density / Sq Mi
$66,764
Median Household Income
$39,409
Median Earnings
$1,087
Median Rent
$204,600
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Quadplex - Updated apartments offer included appliances and a varied bedroom configuration for residential rental use.
Where is this quadplex located?
The property is located at 2601 - 2603 Summer Avenue Waco, TX.
What is the asking price?
The asking price for this property is $360,000.
What are key features of this property?
This property features: Four‑unit multifamily property with 6 bedrooms and 4 bathrooms; Unit mix includes two 2‑bedroom, 1‑bath units and two 1‑bedroom, 1‑bath units; Renovated property built in 1949
