Houston Triplex Multifamily Investment
For Sale
Contact for pricing
2706 ISABELLA ST, Houston, TX 77004
Well-located triplex in Houston's Midtown/Third Ward with income potential.
Property Size3,202 SF
Price / SF$171.77
Days on Market106
Property Features for 2706 ISABELLA ST
General Information
Standard status
Active
Size
3,202 SF
Property subtype
Multifamily
Building Details
Year Built
1930
Listing Agency:
The Sears Group
(281) 598-5800
Listed By:
Sabika Jafri · License #670598
Source:
Crexi
Added: May 16
Changed: Jul 10
Last Checked: Aug 29 at 1:41PM
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 The Sears Group
Investment Insights
Based on property information with market context.
This triplex is a multifamily investment opportunity located in Houston's Midtown and Third Ward area. The property features three separate residential units with income potential. There is potential to add a fourth studio apartment unit, subject to buyer verification, zoning, and permits. The property is suited for investors seeking cash flow with future value-add expansion, as well as owner-occupants looking to offset ownership costs with rental income. Situated near the intersection of Midtown and Third Ward, the property is located minutes from Downtown, the Texas Medical Center, and major universities. It offers access to US-59, I-45, and I-288, and is surrounded by new development. The property is zoned for residential or mixed-use use and has no HOA fees. It is an infill opportunity for short-term or long-term rentals. The property size is 3202 square feet.
Key Highlights
- Prime location at the intersection of Midtown & Third Ward, near Downtown, Texas Medical Center, and major universities.
- Triplex with stable income potential and the possibility to add a fourth studio apartment unit (subject to verification).
- Ideal for investors seeking cash flow and future value‑add expansion.
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
$41,939
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
7.63%
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%
$838,780
$838.8K
Cap Rate 7%
$599,129
$599.1K
Cap Rate 9%
$465,989
$466.0K
Market Conditions
NOI Build-Up for 3,202 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
$63.4K $19.80/SF
− Vacancy
−$3.5K −$1.09/SF
EGI
$59.9K $18.71/SF
− OpEx
−$18.0K −$5.61/SF
NOI
$41.9K $13.10/SF
Area
Houston, TX
Vacancy
5.50%
Lease Rate
$19.80 /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%
$838,780
Cap Rate 7%
$599,129
Cap Rate 9%
$465,989
Alternative Uses
Best Use
Multifamily LT 5
$599.1K
$524.2K – $699.0K
NOI $41,939 @ 7.0% cap · market cap 7.63%
Second Best
Apartment 5plus
$518.2K
$453.5K – $604.6K
NOI $36,276 @ 7.0% cap · market cap 6.60%
Theoretical Best
Office A
$823.4K
$720.5K – $960.6K
NOI $57,636 @ 7.0% cap · market cap 10.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,362
Businesses Nearby
Explore this area
Business Placement
Demographics for 77004, TX
37,005
Population
18,321
Households
2
Avg Household Size
31
Median Age
57%
College-Educated
96%
High-School Grad
5.2 sq mi
ZIP Area
7,116
Density / Sq Mi
$65,901
Median Household Income
$55,909
Median Earnings
$1,320
Median Rent
$384,100
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?
Triplex - Well-located triplex in Houston's Midtown/Third Ward with income potential.
Where is this triplex located?
The property is located at 2706 ISABELLA ST Houston, 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: Prime location at the intersection of Midtown & Third Ward, near Downtown, Texas Medical Center, and major universities.; Triplex with stable income potential and the possibility to add a fourth studio apartment unit (subject to verification).; Ideal for investors seeking cash flow and future value‑add expansion.
