Houston Multifamily Investment
For Sale
$650,000
3420 Rosedale St, Houston, TX 77004
Multifamily property in Houston's University Area, near Texas Medical Center.
Property Size2,830 SF
Lot Size0.16 Acres
Days on Market166
Property Features for 3420 Rosedale St
General Information
Standard status
Active
Size
2,830 SF
Lot size
0.16 Acres
Property subtype
Investment
Lease Term
12 months
Taxes and HOA fees
Annual Taxes
$11,272
Building Details
Building Size
2,830 SF
Year Built
1945
Stories
2
Units
1
Listing Agency:
KELLER WILLIAMS REALTY METROPOLITAN
(713) 478-1007
Listed By:
Yvonne Bonner-Holley · License #0489583
(713) 478-1007
Source:
Elliman
Added: Mar 11
Changed: Aug 8
Last Checked: Aug 22 at 7:23AM
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 KELLER WILLIAMS REALTY METROPOLITAN
Investment Insights
Based on property information with market context.
Located in Houston’s University Area, the multi-family property at 3420 Rosedale Street presents a turnkey investment opportunity. The property is situated minutes from the Texas Medical Center, the University of Houston, and Texas Southern University. The property features six units with long-term tenants, providing consistent cash flow. The units have been maintained and attract rental demand due to the property's proximity to employment centers, universities, and public transit. The area is experiencing appreciation, driven by redevelopment and the demand for housing near the city core.
Key Highlights
- Turnkey investment property with six stable, long‑term tenants, ensuring immediate and consistent cash flow.
- Prime location in Houston's University Area, near the Texas Medical Center, University of Houston, and Texas Southern University.
- Strong rental demand due to proximity to major employment centers, universities, and public transit.
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
$32,062
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
4.93%
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%
$641,240
$641.2K
Cap Rate 7%
$458,029
$458.0K
Cap Rate 9%
$356,244
$356.2K
Market Conditions
NOI Build-Up for 2,830 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
$62.1K $21.96/SF
− Vacancy
−$3.9K −$1.36/SF
EGI
$58.3K $20.60/SF
− OpEx
−$26.2K −$9.27/SF
NOI
$32.1K $11.33/SF
Area
Houston, TX
Vacancy
6.20%
Lease Rate
$21.96 /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%
$641,240
Cap Rate 7%
$458,029
Cap Rate 9%
$356,244
Alternative Uses
Best Use
Apartment 5plus
$458.0K
$400.8K – $534.4K
NOI $32,062 @ 7.0% cap · market cap 4.93%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$727.7K
$636.8K – $849.0K
NOI $50,940 @ 7.0% cap · market cap 7.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
829
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?
Apartment building - Multifamily property in Houston's University Area, near Texas Medical Center.
Where is this apartment building located?
The property is located at 3420 Rosedale St Houston, TX.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: Turnkey investment property with six stable, long‑term tenants, ensuring immediate and consistent cash flow.; Prime location in Houston's University Area, near the Texas Medical Center, University of Houston, and Texas Southern University.; Strong rental demand due to proximity to major employment centers, universities, and public transit.
