Renovated Triplex with Updated
For Sale
$550,000
5144 Pease St 2, Houston, TX 77023
Renovated triplex with an updated 1st floor, stainless appliances, and a new sewage line for rental-ready living.
Property Size3,360 SF
Days on Market52
Property Features for 5144 Pease St 2
General Information
Standard status
Active
Size
3,360 SF
Property subtype
Investment
Occupancy
100%
Additional Details
Business Included
Yes
Multifamily Units
3
Taxes and HOA fees
Annual Taxes
$8,226
Building Details
Building Size
3,360 SF
Year Built
1940
Stories
2
Units
3
Listing Agency:
5th Stream Realty
(281) 650-0598
Listed By:
Tim Tran
(281) 650-0598
Source:
Elliman
Added: Jul 4
Changed: Aug 23
Last Checked: Aug 24 at 6:43AM
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 5th Stream Realty
Investment Insights
Based on property information with market context.
This triplex at 5144 Pease St (Unit 2), Houston, TX 77023 features a remodeled 1st floor and updated interior finishes. The updated level includes 3 bedrooms and 2.5 bathrooms, along with new windows and doors. Flooring includes porcelain in the kitchen and bathrooms, with ceramic and laminate flooring throughout the remainder. The kitchen is fitted with stainless steel appliances, custom cabinets, and granite countertops. Additional improvements noted include a new sewage line, ceiling fans, and a private fenced area.
The property is positioned for tenants looking to be near Downtown, the University of Houston, and Texas Southern University. Walk and bike connectivity scores are listed as 65 (Somewhat Walkable) and 66 (Bikeable), with a transit score of 60 (Good Transit), supporting convenient day-to-day access.
All units are currently rented, offering an occupied setup for an investor or a buyer interested in house-hacking. The updated 1st-floor finishes and recent site improvement to the sewage line provide practical appeal for tenants seeking move-in-ready interiors while maintaining a straightforward triplex configuration.
The property is positioned for tenants looking to be near Downtown, the University of Houston, and Texas Southern University. Walk and bike connectivity scores are listed as 65 (Somewhat Walkable) and 66 (Bikeable), with a transit score of 60 (Good Transit), supporting convenient day-to-day access.
All units are currently rented, offering an occupied setup for an investor or a buyer interested in house-hacking. The updated 1st-floor finishes and recent site improvement to the sewage line provide practical appeal for tenants seeking move-in-ready interiors while maintaining a straightforward triplex configuration.
Key Highlights
- Triplex built in 1940 with all units currently rented out
- Updated 1st floor remodeled with 3 beds and 2.5 baths
- Renovations include new windows/doors and a new sewage line
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
$44,008
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
8.00%
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%
$880,160
$880.2K
Cap Rate 7%
$628,686
$628.7K
Cap Rate 9%
$488,978
$489.0K
Market Conditions
NOI Build-Up for 3,360 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
$66.5K $19.80/SF
− Vacancy
−$3.7K −$1.09/SF
EGI
$62.9K $18.71/SF
− OpEx
−$18.9K −$5.61/SF
NOI
$44.0K $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%
$880,160
Cap Rate 7%
$628,686
Cap Rate 9%
$488,978
Alternative Uses
Best Use
Multifamily LT 5
$628.7K
$550.1K – $733.5K
NOI $44,008 @ 7.0% cap · market cap 8.00%
Second Best
Apartment 5plus
$543.8K
$475.8K – $634.4K
NOI $38,066 @ 7.0% cap · market cap 6.92%
Theoretical Best
Office A
$864.0K
$756.0K – $1.01M
NOI $60,480 @ 7.0% cap · market cap 11.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
100%
Occupancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
757
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
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Triplex - Renovated triplex with an updated 1st floor, stainless appliances, and a new sewage line for rental-ready living.
Where is this triplex located?
The property is located at 5144 Pease St 2 Houston, TX.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: Triplex built in 1940 with all units currently rented out; Updated 1st floor remodeled with 3 beds and 2.5 baths; Renovations include new windows/doors and a new sewage line
