Two-Bedroom Residential Income
For Sale
$184,000
2905 Lake Shore Drive, Waco, TX 76708
Condo with updated flooring, fireplace, open kitchen, and HOA-covered exterior and community services.
Property Size1,178 SF
Price / SF$156.20
Days on Market25
Property Features for 2905 Lake Shore Drive
General Information
Standard status
Active
Size
1,178 SF
Property subtype
Commercial
Additional Details
Multifamily Units
1
Amenities
community pool
wood-burning fireplace
Building Details
Year Built
1974
Listing Agency:
Camille Johnson
Listed By:
Joslyn Horn · License #740149
(254) 405-6162
Source:
254group
Added: Aug 14
Changed: Sep 4
Last Checked: Sep 7 at 4:30AM
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 Camille Johnson
Investment Insights
Based on property information with market context.
This 1,178-square-foot condominium, built in 1974, offers two bedrooms and two full bathrooms in a low-maintenance residential setting. Recent luxury vinyl plank flooring complements a living room with abundant natural light and a wood-burning fireplace. The open kitchen provides substantial cabinet storage and connects with the dining area. The primary bedroom has an ensuite bathroom and walk-in closet, while the second bedroom is positioned near the additional full bathroom and can accommodate guests, roommates, or office use.
HOA-covered services include community pool and landscaping maintenance, water service, roof insurance, and exterior building insurance. The property is located near Baylor University, Magnolia Market, shopping, grocery stores, and dining.
HOA-covered services include community pool and landscaping maintenance, water service, roof insurance, and exterior building insurance. The property is located near Baylor University, Magnolia Market, shopping, grocery stores, and dining.
Key Highlights
- Two‑bedroom, two‑bath condominium with 1,178 SF of living area
- Built in 1974 with new luxury vinyl plank flooring
- Light‑filled living room with a wood‑burning fireplace
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
$9,389
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
5.10%
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%
$187,780
$187.8K
Cap Rate 7%
$134,129
$134.1K
Cap Rate 9%
$104,322
$104.3K
Market Conditions
NOI Build-Up for 1,178 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
$18.8K $15.96/SF
− Vacancy
−$1.7K −$1.47/SF
EGI
$17.1K $14.49/SF
− OpEx
−$7.7K −$6.52/SF
NOI
$9.4K $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%
$187,780
Cap Rate 7%
$134,129
Cap Rate 9%
$104,322
Alternative Uses
Best Use
Apartment 5plus
$134.1K
$117.4K – $156.5K
NOI $9,389 @ 7.0% cap · market cap 5.10%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$310.8K
$271.9K – $362.6K
NOI $21,755 @ 7.0% cap · market cap 11.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
252
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
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Condo with updated flooring, fireplace, open kitchen, and HOA-covered exterior and community services.
Where is this residential income property located?
The property is located at 2905 Lake Shore Drive Waco, TX.
What is the asking price?
The asking price for this property is $184,000.
What are key features of this property?
This property features: Two‑bedroom, two‑bath condominium with 1,178 SF of living area; Built in 1974 with new luxury vinyl plank flooring; Light‑filled living room with a wood‑burning fireplace
