Residential Income Property with
For Sale
$215,000
Pending
3508 42nd Street, Lubbock, TX 79413
MULTI_FAMILY - Other - Lubbock, TX
Property Size1,963 SF
Lot Size0.18 Acres
Days on Market56
Property Features for 3508 42nd Street
General Information
Property type
Residential Multi Family
Property subtype
Other
Zoning description
Single Family
Bedrooms
3
Bathrooms
3
Full bathrooms
3
Rooms
Bedroom 2, Bedroom 3, Bathroom 3, Bathroom 2, Bedroom 1, Bathroom 1
Parking
1
Parking features
Garage
Window features
Storm Window(s)
Patio and Porch features
Patio
Interior features
Bookcases, Breakfast Bar, Ceiling Fan(s), Formica Counters
Fencing
Fenced
Appliances
Dishwasher, Disposal, Microwave
Lot features
Back Yard, City Lot
Elementary school
Maedgen
Middle school
Hutchinson
High school
Lubbock
Elementary school district
Lubbock ISD
Middle school district
Lubbock ISD
High school district
Lubbock ISD
Subdivision
3
Standard status
Pending
APN
R119093
Size
1,963 SF
Lot size
0.18 Acres
Taxes and HOA fees
Tax Description
Slaton Myrtle Blk 8 E20'of 16& W40'of 17
Tax Annual Amount
3886
Legal Description
Slaton Myrtle Blk 8 E20'of 16& W40'of 17
Utilities
Sewer type
Public Sewer
Heating system
Natural Gas, Central
Cooling system
Electric, Central Air
Water source
Public
Building Details
Year built
1954
Floors in Building
1
Number of units
1
Flooring type
Tile, Carpet, Hardwood
Building materials
Brick
Roof type
Composition
Architectural style
Other
Listing Agency:
Keller Williams Realty
(806) 771-7710
Listed By:
Dianna Romans · License #0595636
(806) 789-0899
Added: Jun 18
Changed: Aug 2
Last Checked: Aug 12 at 6:06PM
MLS# 202608363
Copyright © 2026 Lubbock Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This residential income property includes an additional unit in the back in the form of an ADU, creating a second rental option on the site. The home has had a range of updates, including new floors, interior painting, new blinds, a new hot water heater, new gas lines, plumbing upgrades, and recent landscaping.
The property is located in Lubbock, Texas, and is described as centrally located and close to Texas Tech. Public remarks also note that it is one of the only homes in the area with a third bathroom, which may be useful for certain household and roommate setups.
For investors or owner-operators, the combination of an ADU and a tenant already in place can support an income-focused strategy from day one. The documented capital improvements may also help reduce immediate maintenance concerns, while the property’s layout offers flexibility for renters seeking more than one bathroom and an additional space on the same parcel.
The property is located in Lubbock, Texas, and is described as centrally located and close to Texas Tech. Public remarks also note that it is one of the only homes in the area with a third bathroom, which may be useful for certain household and roommate setups.
For investors or owner-operators, the combination of an ADU and a tenant already in place can support an income-focused strategy from day one. The documented capital improvements may also help reduce immediate maintenance concerns, while the property’s layout offers flexibility for renters seeking more than one bathroom and an additional space on the same parcel.
Key Highlights
- 1954 brick home with multiple bathrooms, including a third bathroom
- ADU in back for additional rental space
- Central heating with natural gas and central air cooling
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
$15,920
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
7.40%
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%
$318,400
$318.4K
Cap Rate 7%
$227,429
$227.4K
Cap Rate 9%
$176,889
$176.9K
Market Conditions
NOI Build-Up for 1,963 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
$30.9K $15.72/SF
− Vacancy
−$1.9K −$0.97/SF
EGI
$28.9K $14.75/SF
− OpEx
−$13.0K −$6.64/SF
NOI
$15.9K $8.11/SF
Area
Lubbock, TX
Vacancy
6.20%
Lease Rate
$15.72 /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%
$318,400
Cap Rate 7%
$227,429
Cap Rate 9%
$176,889
Alternative Uses
Best Use
Apartment 5plus
$227.4K
$199.0K – $265.3K
NOI $15,920 @ 7.0% cap · market cap 7.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$494.9K
$433.0K – $577.4K
NOI $34,641 @ 7.0% cap · market cap 16.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
666
Businesses Nearby
Explore this area
Business Placement
Demographics for 79413, TX
20,962
Population
9,590
Households
2.2
Avg Household Size
35
Median Age
35%
College-Educated
91%
High-School Grad
4.7 sq mi
ZIP Area
4,460
Density / Sq Mi
$67,062
Median Household Income
$38,004
Median Earnings
$1,325
Median Rent
$195,900
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Single family property - Residential income property with a tenant in place and a back ADU, plus multiple recent updates throughout.
Where is this single family property located?
The property is located at 3508 42nd Street Lubbock, TX.
What is the asking price?
The asking price for this property is $215,000.
What are key features of this property?
This property features: 1954 brick home with multiple bathrooms, including a third bathroom; ADU in back for additional rental space; Central heating with natural gas and central air cooling
