Income Producing Multifamily
For Sale
$695,000
3224 Mcgowen St, Houston, TX 77004
Multifamily property with six units near University Area.
Property Size3,080 SF
Price / SF$225.65
Days on Market140
Property Features for 3224 Mcgowen St
General Information
Standard status
Active
Size
3,080 SF
Property subtype
Residential Income
Taxes and HOA fees
Annual Taxes
$10,380
Listing Agency:
exp realty llc
(888) 883-8509
Listed By:
Thao Nguyen · License #0624429
(346) 226-6699
Source:
Exprealty
Added: Apr 24
Changed: Sep 5
Last Checked: Sep 9 at 6:48AM
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 llc
Investment Insights
Based on property information with market context.
This multifamily property features three well-maintained duplexes, totaling six units. Each unit has a 1-bedroom, 1-bath layout. Five units are currently tenant-occupied, with one unit available for lease, providing immediate cash flow. The property is located in Houston’s University Area, near Downtown Houston, the University of Houston, Texas Southern University, and the Texas Medical Center. The location attracts students, medical professionals, and VA personnel. Easy access to I-69, I-45, and Hwy 288 facilitates transportation. The property has a bike score of 70, indicating it is very bikeable, a walk score of 78, indicating it is very walkable, and a transit score of 63, indicating good transit options. The property is located on a 5000 square foot lot, allowing for the construction of two townhouses in the back.
Key Highlights
- Income‑producing property with immediate cash flow from 5 tenant‑occupied units.
- Multi‑family opportunity to build two townhouses on a 5000 sq ft lot while collecting rent.
- Located in Houston's highly desirable University Area, near major universities and the Texas Medical Center.
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
$40,341
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
5.80%
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%
$806,820
$806.8K
Cap Rate 7%
$576,300
$576.3K
Cap Rate 9%
$448,233
$448.2K
Market Conditions
NOI Build-Up for 3,080 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
$61.0K $19.80/SF
− Vacancy
−$3.4K −$1.09/SF
EGI
$57.6K $18.71/SF
− OpEx
−$17.3K −$5.61/SF
NOI
$40.3K $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%
$806,820
Cap Rate 7%
$576,300
Cap Rate 9%
$448,233
Alternative Uses
Best Use
Multifamily LT 5
$576.3K
$504.3K – $672.4K
NOI $40,341 @ 7.0% cap · market cap 5.80%
Second Best
Apartment 5plus
$498.5K
$436.2K – $581.6K
NOI $34,894 @ 7.0% cap · market cap 5.02%
Theoretical Best
Office A
$792.0K
$693.0K – $924.0K
NOI $55,440 @ 7.0% cap · market cap 7.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
870
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
Check the figures for this property
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?
Duplex - Multifamily property with six units near University Area.
Where is this duplex located?
The property is located at 3224 Mcgowen St Houston, TX.
What is the asking price?
The asking price for this property is $695,000.
What are key features of this property?
This property features: Income‑producing property with immediate cash flow from 5 tenant‑occupied units.; Multi‑family opportunity to build two townhouses on a 5000 sq ft lot while collecting rent.; Located in Houston's highly desirable University Area, near major universities and the Texas Medical Center.
