Tri-Plex Residential Income
For Sale
$495,000
5121 Polk Street, Houston, TX 77023
Three-unit residence offers two 2-bedroom layouts plus a 1-bedroom studio with hardwood floors.
Property Size3,227 SF
Price / SF$153.39
Days on Market109
Property Features for 5121 Polk Street
General Information
Standard status
Active
Size
3,227 SF
Property subtype
Multi-Family
Additional Details
Multifamily Units
3
Taxes and HOA fees
Annual Taxes
$9,076
Amenities
Laminate,Tile,Vinyl,Wood,Hardwood
Yes
1
2
Window Coverings
Common Area
Appraiser
Window Treatments,Ceiling Fan(s)
Corner Lot,Near Public Transit,Subdivision
5500
Paved
3227
Building Details
Building Size
3,227 SF
Year Built
1930
Stories
2
Listing Agency:
Foundations Realty
(281) 486-1900
Listed By:
Diana Wilson Better Living Realty Group
(832) 741-9500
Source:
Garygreene
Added: Jun 4
Changed: Sep 19
Last Checked: Sep 20 at 6:45AM
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 Foundations Realty
Investment Insights
Based on property information with market context.
This tri-plex features three separate living units. Two units are laid out as 2 bedrooms and 1 bathroom each, with a spacious living area, dining area, and kitchen, and hardwood floors. The third unit is a garage apartment configured as a 1-bedroom studio. The property is described as having a cozy feel with plenty of natural light across the units.
The home is situated in a vibrant neighborhood. A park is located across the street, and nearby restaurants are within the surrounding area. A bus stop is also noted in front of the home, providing convenient public transit access.
The mix of two full 2-bedroom units and one smaller 1-bedroom studio can be useful for tenants with different space needs, while still keeping the overall property easy to manage as one building. This configuration may appeal to buyers looking for a residential income property with clear unit separation and well-defined interior layouts.
The home is situated in a vibrant neighborhood. A park is located across the street, and nearby restaurants are within the surrounding area. A bus stop is also noted in front of the home, providing convenient public transit access.
The mix of two full 2-bedroom units and one smaller 1-bedroom studio can be useful for tenants with different space needs, while still keeping the overall property easy to manage as one building. This configuration may appeal to buyers looking for a residential income property with clear unit separation and well-defined interior layouts.
Key Highlights
- Year built 1930 three‑unit residence with two 2‑bedroom units and one 1‑bedroom studio (garage apartment).
- Two 2‑bedroom, 1‑bath units with spacious living areas, dining, and kitchens.
- Hardwood floors in the home and studio unit.
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
$42,266
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
8.54%
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%
$845,320
$845.3K
Cap Rate 7%
$603,800
$603.8K
Cap Rate 9%
$469,622
$469.6K
Market Conditions
NOI Build-Up for 3,227 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
$63.9K $19.80/SF
− Vacancy
−$3.5K −$1.09/SF
EGI
$60.4K $18.71/SF
− OpEx
−$18.1K −$5.61/SF
NOI
$42.3K $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%
$845,320
Cap Rate 7%
$603,800
Cap Rate 9%
$469,622
Alternative Uses
Best Use
Multifamily LT 5
$603.8K
$528.3K – $704.4K
NOI $42,266 @ 7.0% cap · market cap 8.54%
Second Best
Apartment 5plus
$522.3K
$457.0K – $609.3K
NOI $36,559 @ 7.0% cap · market cap 7.39%
Theoretical Best
Office A
$829.8K
$726.1K – $968.1K
NOI $58,086 @ 7.0% cap · market cap 11.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
3
Residential units
Location Intelligence
Trade Area within ½ mile
814
Businesses Nearby
Explore this area
Business Placement
Demographics for 77023, TX
26,780
Population
11,850
Households
2.3
Avg Household Size
36
Median Age
24%
College-Educated
75%
High-School Grad
5.5 sq mi
ZIP Area
4,869
Density / Sq Mi
$50,018
Median Household Income
$35,730
Median Earnings
$1,079
Median Rent
$279,300
Median Home Value
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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?
Triplex - Three-unit residence offers two 2-bedroom layouts plus a 1-bedroom studio with hardwood floors.
Where is this triplex located?
The property is located at 5121 Polk Street Houston, TX.
What is the asking price?
The asking price for this property is $495,000.
What are key features of this property?
This property features: Year built 1930 three‑unit residence with two 2‑bedroom units and one 1‑bedroom studio (garage apartment).; Two 2‑bedroom, 1‑bath units with spacious living areas, dining, and kitchens.; Hardwood floors in the home and studio unit.
