Maintained Brick
For Sale
$302,500
406 W Oak Street, Highlands, TX 77562
Two residences feature updated interiors, private fenced yards, covered patios, and laundry hookups.
Property Size3,871 SF
Price / SF$78.15
Days on Market61
Property Features for 406 W Oak Street
General Information
Standard status
Active
Size
3,871 SF
Property subtype
Multi-Family
Units
Unit Mix
2 x 2BR/1BA
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$7,071
Amenities
in-unit laundry hookups
private fenced backyards
covered patios
Laminate
Yes
1
2
Washer Hookup,Dryer Hookup
Appraiser
Granite Counters,Ceiling Fan(s)
Partial
Cleared,Subdivision
13640
Two
110X124
Satellite Dish
3871
Building Details
Building Size
3,871 SF
Year Built
1988
Stories
1
Construction
brick
Listing Agency:
Keller Williams Realty Southwest
(281) 635-4007
Listed By:
Lisa Smith · License #0791341
(281) 635-4007
Source:
Garygreene
Added: Jun 9
Changed: Aug 5
Last Checked: Aug 8 at 4:02AM
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 Southwest
Investment Insights
Based on property information with market context.
This duplex contains two residences, each offering two bedrooms, one bathroom, spacious living areas, a functional kitchen, updated flooring, and washer and dryer hookups. Solid brick construction, covered patios, and private fenced backyards add durable exterior features and usable outdoor space. The property was built in 1988 and has been maintained by its original owner.
Located at 406 W Oak Street in Highlands, Texas, the property includes 3,871 square feet and sits on a 13,640-square-foot lot measuring 110 by 124 feet. The two-unit configuration supports separate residential living areas within one investment property.
Located at 406 W Oak Street in Highlands, Texas, the property includes 3,871 square feet and sits on a 13,640-square-foot lot measuring 110 by 124 feet. The two-unit configuration supports separate residential living areas within one investment property.
Key Highlights
- Two‑unit duplex with 3,871 square feet
- Each residence includes 2 bedrooms and 1 bathroom
- Solid brick construction built in 1988
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
$25,665
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
8.48%
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%
$513,300
$513.3K
Cap Rate 7%
$366,643
$366.6K
Cap Rate 9%
$285,167
$285.2K
Market Conditions
NOI Build-Up for 3,871 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
$51.6K $13.32/SF
− Vacancy
−$4.9K −$1.27/SF
EGI
$46.7K $12.05/SF
− OpEx
−$21.0K −$5.42/SF
NOI
$25.7K $6.63/SF
Area
Harris County, TX
Vacancy
9.50%
Lease Rate
$13.32 /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%
$513,300
Cap Rate 7%
$366,643
Cap Rate 9%
$285,167
Alternative Uses
Best Use
Multifamily LT 5
$422.6K
$369.8K – $493.0K
NOI $29,580 @ 7.0% cap · market cap 9.78%
Second Best
Apartment 5plus
$366.6K
$320.8K – $427.8K
NOI $25,665 @ 7.0% cap · market cap 8.48%
Theoretical Best
Office A
$1.06M
$924.9K – $1.23M
NOI $73,989 @ 7.0% cap · market cap 24.46%
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
329
Businesses Nearby
Explore this area
Business Placement
Demographics for 77562, TX
11,861
Population
4,184
Households
2.8
Avg Household Size
38
Median Age
12%
College-Educated
81%
High-School Grad
13.5 sq mi
ZIP Area
879
Density / Sq Mi
$63,636
Median Household Income
$39,712
Median Earnings
$1,190
Median Rent
$195,300
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 residences feature updated interiors, private fenced yards, covered patios, and laundry hookups.
Where is this duplex located?
The property is located at 406 W Oak Street Highlands, TX.
What is the asking price?
The asking price for this property is $302,500.
What are key features of this property?
This property features: Two‑unit duplex with 3,871 square feet; Each residence includes 2 bedrooms and 1 bathroom; Solid brick construction built in 1988
