Gated Duplex with Central
For Sale
$439,900
3104 Lee St A-B, Houston, TX 77026
Two brand-new residences designed for flexible use as short-term rentals or long-term housing within a gated courtyard setting.
Property Size1,920 SF
Days on Market57
Property Features for 3104 Lee St A-B
General Information
Standard status
Active
Size
1,920 SF
Property subtype
Investment
Additional Details
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$2,267
Building Details
Building Size
1,920 SF
Stories
2
Units
1
Listing Agency:
Brooks & Davis Real Estate
(832) 524-4526
Listed By:
Andre Beraud · License #0667248
(832) 524-4526
Source:
Elliman
Added: Jun 17
Changed: Aug 8
Last Checked: Aug 12 at 7:54AM
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 Brooks & Davis Real Estate
Investment Insights
Based on property information with market context.
This gated duplex portfolio offers two brand-new residences presented together as a single ownership opportunity. Each home includes 2 bedrooms and 2.5 bathrooms, with high ceilings and modern interior finishes. Kitchens are equipped with quartz countertops and stainless steel appliances, and the homes feature porcelain tile and laminate flooring. Each unit also provides a primary suite with an en-suite bathroom. A central courtyard serves as a shared outdoor area within the community.
The property is located in Houston’s French Town 5th Ward. Public remarks note convenient access to Downtown (about 2 minutes) and George Bush Intercontinental Airport (IAH) (about 20 minutes). BikeScore is listed as 74, with walkScore 58 and transitScore 51.
For buyers seeking residential income flexibility, the two separate 2-bedroom, 2.5-bath homes can support either short-term rental use or operation as a cohesive long-term rental community, depending on the tenant mix desired. The combination of new construction, dedicated primary suites, and courtyard-style shared space may appeal to operators looking to manage multiple units under one portfolio while maintaining privacy and distinct living areas.
The property is located in Houston’s French Town 5th Ward. Public remarks note convenient access to Downtown (about 2 minutes) and George Bush Intercontinental Airport (IAH) (about 20 minutes). BikeScore is listed as 74, with walkScore 58 and transitScore 51.
For buyers seeking residential income flexibility, the two separate 2-bedroom, 2.5-bath homes can support either short-term rental use or operation as a cohesive long-term rental community, depending on the tenant mix desired. The combination of new construction, dedicated primary suites, and courtyard-style shared space may appeal to operators looking to manage multiple units under one portfolio while maintaining privacy and distinct living areas.
Key Highlights
- Portfolio includes 2 brand‑new residences sold together within a gated courtyard community
- Each home features 2 bedrooms and 2.5 bathrooms
- Interiors include high ceilings, modern fixtures, and porcelain tile/laminate flooring
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
$25,148
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
5.72%
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%
$502,960
$503.0K
Cap Rate 7%
$359,257
$359.3K
Cap Rate 9%
$279,422
$279.4K
Market Conditions
NOI Build-Up for 1,920 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
$38.0K $19.80/SF
− Vacancy
−$2.1K −$1.09/SF
EGI
$35.9K $18.71/SF
− OpEx
−$10.8K −$5.61/SF
NOI
$25.1K $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%
$502,960
Cap Rate 7%
$359,257
Cap Rate 9%
$279,422
Alternative Uses
Best Use
Multifamily LT 5
$359.3K
$314.4K – $419.1K
NOI $25,148 @ 7.0% cap · market cap 5.72%
Second Best
Apartment 5plus
$310.7K
$271.9K – $362.5K
NOI $21,752 @ 7.0% cap · market cap 4.94%
Theoretical Best
Office A
$493.7K
$432.0K – $576.0K
NOI $34,560 @ 7.0% cap · market cap 7.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
520
Businesses Nearby
Explore this area
Business Placement
Demographics for 77026, TX
23,405
Population
9,580
Households
2.4
Avg Household Size
36
Median Age
9%
College-Educated
70%
High-School Grad
6.6 sq mi
ZIP Area
3,546
Density / Sq Mi
$34,835
Median Household Income
$29,339
Median Earnings
$962
Median Rent
$104,800
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?
Duplex - Two brand-new residences designed for flexible use as short-term rentals or long-term housing within a gated courtyard setting.
Where is this duplex located?
The property is located at 3104 Lee St A-B Houston, TX.
What is the asking price?
The asking price for this property is $439,900.
What are key features of this property?
This property features: Portfolio includes 2 brand‑new residences sold together within a gated courtyard community; Each home features 2 bedrooms and 2.5 bathrooms; Interiors include high ceilings, modern fixtures, and porcelain tile/laminate flooring
