3405 Drew St #4 · Houston, TX 77004

$430,000

2 bd · 1.0 ba · 3,120 sqft · MultiFamily public records · 252 Days on market

Built 1964 5,000 sqft lot $138/sqft · 24% below area Est $565k · 24% under ↓ 4% since listing

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Why this score? — see what drove the C+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +24.3/30.0
• ARV discount +15.0/15.0
• DSCR +7.8/10.0
• 1% rule +6.4/10.0
• Livability +3.7/5.0
• Schools +2.7/10.0
• Condition / age +2.5/5.0
• Rent growth +2.4/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 1 unit. estimate disagrees with records

Listing remarks MLS

Investment Opportunity in Houston’s Booming 3rd Ward! Located just 5 minutes from Texas Southern University and only 3 minutes from the University of Houston, this 4-unit multifamily property is perfectly positioned in one of Houston’s fastest-growing neighborhoods. Each unit offers 2 bedrooms and 1 bathroom, making it highly attractive to students, young professionals, and families seeking affordable housing close to major universities, Downtown Houston, and the Medical Center. Each unit is currently rented as there is a high demand for rental property in this area. The 3rd Ward is undergoing an exciting transformation, with new construction breaking ground daily and a surge of development reshaping the community. Investors will appreciate the strong rental demand, excellent proximity to higher education, and long-term growth potential in this transitioning area.

Key facts

• Strong rental demand
• Multifamily property
• 5,000 sq ft lot

Tags

• MULTIFAMILY PROPERTY
• STRONG RENTAL DEMAND
• LONG-TERM GROWTH POTENTIAL

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath multifamily listed at $430k.

Deal economics

• At list price, monthly cash flow is $798 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $430k).
• Recommended offer: $378k (12.0% below list) — sets the bar for market timing.
• Cap rate 8.7% vs local median 3.1% in Houston — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 74/100 on livability (#184 in TX, #4,771 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, cost of living A+, housing A+; Watch: schools D, crime F.
• Houston ISD (urban): math 27% / reading 35% proficiency, ranked #593 of 826 in TX (top 72%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 71% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents soft (-0.3%/yr); 581 active listings in the ZIP; 21 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); 43% of comp listings sitting > 30 days — soft ceiling on asking rent; 29,883 units permitted in Harris County in 2024 (8,621 in 5+ unit buildings).
• At $4,908/mo this rent would consume 83% of the median local household income ($71k/yr) (locally 3072% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Harris County population projected at +47% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 252 days — a 12% lower offer ($378k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 3y ago; this cycle's ask has dropped $40k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Watch-outs: flood insurance adds $66/mo.
• Climate carrying-cost: severe flood risk; severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $378,400 (12.0% below list)

Questions for the listing agent

1. It's been on market 252 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Built in 1964 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
7. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
8. What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
9. What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
10. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.14% ✓
• Cap rate: 8.71%
• Cash-on-cash: 8.62%
• DSCR: 1.38
• GRM: 7.3

CMA / ARV

• ARV (median comp): $564,511
• List price: $430,000
• Delta: -23.83%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 4 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
3115 Webster St	0.42mi	3/2.0 (+1)	2,947 (-6%)	2mo	$460,000	$156	60
3330 Francis St Unit AB	0.34mi	3/2.0 (+1)	3,400 (+9%)	3mo	$575,000	$169	58
3334 Francis St	0.32mi	3/2.0 (+1)	3,274 (+5%)	12mo	$649,999	$199	58
2804 Delano St #4	0.54mi	2/1.0	3,500 (+12%)	7mo	$555,000	$159	49

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 0.0% rent growth · sell at horizon

5-year hold

• IRR: -7.7%
• Equity multiple: 0.73×
• Total profit: $-33,084
• Equity at exit: $64,114

10-year hold

• IRR: -2.6%
• Equity multiple: 0.85×
• Total profit: $-18,363
• Equity at exit: $37,179

Cash invested: $120,400 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 87 Strongly Landlord-Friendly
• State Texas: 87 Strongly Landlord-Friendly · R+5
• County: — inherits STATE
• City: — inherits STATE

3-day notice; statewide preemption; one of the fastest eviction climates; Travis County (Austin) slightly slower.

Methodology + full state rankings →

ZIP-level market 77004

• Rents YoY: -0.3%
• Active inventory: 581
• Price-to-rent: 29.2×

Monthly cashflow live

• Estimated rent: $4,908 high
• Mortgage (P&I): −$2,255
• Tax from tax record: −$579 /mo · $6,942/yr
• Insurance: −$179
• Flood insurance flood zone: −$66 /mo · $798/yr
• HOA: −$0
• Vacancy / Maint / Mgmt: −$1,031
• Net cashflow: $798

Break-even live

Break-even rent $3,898

Max offer price $430,000

Occupancy floor 79%

Sensitivity live

Price	-10% $1,042	-5% $920	+0% $798	+5% $676	+10% $555
Rent	-10% $410	-5% $604	+0% $798	+5% $992	+10% $1,186
Rate	-1.0pp $1,015	-0.5pp $908	base $798	+0.5pp $687	+1.0pp $573

4-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 4× units	2	1	$4,908
Total (4 units)			$4,908

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $107,500
• Closing costs: $12,900
• Reserves months: —
• Total cash needed: —

Rent comps 21 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
3335 Tuam St Houston, TX	2.0	1.0	2300	$995	$0.43	44d	1	0.03mi
3507 Canfield St Houston, TX	3.0	2.5	2200	$2,350	$1.07	25d	1	0.47mi
2105 McGowen St Unit 1244936P Houston, TX	3.0	3.5	2497	$4,836	$1.94	6d	1	0.89mi
2109 McGowen St Unit 1244934P Houston, TX	3.0	3.5	2497	$4,734	$1.90	6d	1	0.90mi
2107 McGowen St Unit 1244935P Houston, TX	3.0	3.5	2497	$4,711	$1.89	3d	1	0.90mi
2103 McGowen St Unit 1244937P Houston, TX	3.0	3.5	2292	$4,871	$2.13	0d	1	0.90mi
2519 Saint Emanuel St Unit 1241246P Houston, TX	3.0	3.0	2389	$2,639	$1.10	0d	1	0.91mi
2521 Saint Emanuel St Unit 1047945P Houston, TX	3.0	3.0	2292	$2,790	$1.22	0d	1	0.91mi
2326 St Emanuel St Houston, TX	3.0	3.5	2642	$2,601	$0.98	8d	1	0.95mi
3226 McKinney St Houston, TX	3.0	3.0	2274	$2,500	$1.10	44d	1	0.97mi
4001 Dallas St Unit 1029264P Houston, TX	3.0	3.0	2174	$5,077	$2.34	6d	1	0.99mi
3010 Chenevert St Unit 3010 Houston, TX	3.0	3.5	3203	$8,000	$2.50	44d	1	1.16mi
3010 Chenevert St Unit 1019638P Houston, TX	3.0	3.5	3196	$7,988	$2.50	8d	1	1.16mi
2816 Rusk St Houston, TX	3.0	3.5	2107	$2,800	$1.33	44d	1	1.17mi
2703 Blodgett St Unit 1047952P Houston, TX	1.0–5.0	1.5–5.5	2497	$10,654	$4.27	2d	2	1.21mi
1915 Cleburne St Houston, TX	2.0	1.0	2766	$1,800	$0.65	44d	1	1.28mi
2416 La Branch St Houston, TX	3.0	4.0	2540	$2,900	$1.14	44d	1	1.32mi
2721 Austin St Houston, TX	3.0	4.0	2607	$3,000	$1.15	25d	1	1.35mi
2802 Palm St Houston, TX	2.0	1.0	3990	$1,650	$0.41	44d	1	1.40mi
2403 Arbor St Houston, TX	3.0	2.5	2344	$2,800	$1.19	44d	1	1.40mi
1552 Lombardy St Houston, TX	1.0	1.0	2528	$1,150	$0.45	44d	1	1.49mi

Listing history 23 events

1. 2026-06-18
   days on market $430,000 Active 252 DOM
2. 2026-06-17
   days on market $430,000 Active 251 DOM
3. 2026-06-16
   days on market $430,000 Active 250 DOM
4. 2026-06-15
   days on market $430,000 Active 249 DOM
5. 2026-06-13
   days on market $430,000 Active 247 DOM
6. 2026-06-10
   days on market $430,000 Active 243 DOM
7. 2026-06-08
   days on market $430,000 Active 242 DOM
8. 2026-06-07
   days on market $430,000 Active 241 DOM
9. 2026-06-04
   days on market $430,000 Active 238 DOM
10. 2026-06-01
    days on market $430,000 Active 235 DOM
11. 2026-05-31
    days on market $430,000 Active 234 DOM
12. 2026-02-19
    price $430,000 891-char remark

    Show marketing remark (891 chars)

    Investment Opportunity in Houston’s Booming 3rd Ward! Located just 5 minutes from Texas Southern University and only 3 minutes from the University of Houston, this 4-unit multifamily property is perfectly positioned in one of Houston’s fastest-growing neighborhoods. Each unit offers 2 bedrooms and 1 bathroom, making it highly attractive to students, young professionals, and families seeking affordable housing close to major universities, Downtown Houston, and the Medical Center. Each unit is currently rented as there is a high demand for rental property in this area. The 3rd Ward is undergoing an exciting transformation, with new construction breaking ground daily and a surge of development reshaping the community. Investors will appreciate the strong rental demand, excellent proximity to higher education, and long-term growth potential in this transitioning area.

13. 2025-11-21
    price $455,000 891-char remark

    Show marketing remark (891 chars)

    Investment Opportunity in Houston’s Booming 3rd Ward! Located just 5 minutes from Texas Southern University and only 3 minutes from the University of Houston, this 4-unit multifamily property is perfectly positioned in one of Houston’s fastest-growing neighborhoods. Each unit offers 2 bedrooms and 1 bathroom, making it highly attractive to students, young professionals, and families seeking affordable housing close to major universities, Downtown Houston, and the Medical Center. Each unit is currently rented as there is a high demand for rental property in this area. The 3rd Ward is undergoing an exciting transformation, with new construction breaking ground daily and a surge of development reshaping the community. Investors will appreciate the strong rental demand, excellent proximity to higher education, and long-term growth potential in this transitioning area.

14. 2025-10-09
    listed $470,000 Active 891-char remark

    Show marketing remark (891 chars)

    Investment Opportunity in Houston’s Booming 3rd Ward! Located just 5 minutes from Texas Southern University and only 3 minutes from the University of Houston, this 4-unit multifamily property is perfectly positioned in one of Houston’s fastest-growing neighborhoods. Each unit offers 2 bedrooms and 1 bathroom, making it highly attractive to students, young professionals, and families seeking affordable housing close to major universities, Downtown Houston, and the Medical Center. Each unit is currently rented as there is a high demand for rental property in this area. The 3rd Ward is undergoing an exciting transformation, with new construction breaking ground daily and a surge of development reshaping the community. Investors will appreciate the strong rental demand, excellent proximity to higher education, and long-term growth potential in this transitioning area.

15. 2025-07-11
    historical
16. 2025-04-29
    price $490,000
17. 2025-02-11
    listed $501,000 Active
18. 2023-03-26
    historical
19. 2023-03-06
    soldstatus
20. 2023-03-02
    soldstatus Sold
21. 2023-01-22
    listed $449,000 Active
22. 2022-05-27
    soldstatus
23. 1988-01-02
    soldstatus

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast TX · Resets to sale price

• Current annual tax: $6,942 · $579/mo
• Projected year-2 tax: $7,869 · $656/mo
• Expected delta: +$927/yr (+$77/mo · 13.3%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 8/10 Severe FEMA zone X (unshaded) · 99% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 9/10 Extreme 7 d/yr ≥109°F today · 24 d/yr by 30 yrs out
• 💨 Wind 9/10 Extreme 99% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $58,896
• − Mortgage interest: −$24,087
• − Property taxes: −$6,942
• − Insurance: −$2,948
• − Repairs & maintenance: −$4,712
• − Management: −$4,712
• − Depreciation: −$12,509
• Taxable income: $2,987
• Est. tax owed @ 24.0%: −$717
• After-tax cash flow: $8,862/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Houston ISD
• NCES district ID: 4823640
• Math proficiency: 27% ▼ -18.00%
• Reading proficiency: 35% ▼ -6.00%
• Median HH income: $46,054
• Composite: 26.63/100
• National rank: #7173
• State rank: #593 of 826 in TX

Livability — Houston

• Score: 74/100
• State rank: #184
• US rank: #4771

Category grades

Amenities A+ Commute A Cost of living A+ Crime F Employment C Housing A+ Health & safety A- User ratings F

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Houston, TX
• County: Harris County · 4,702,590 people
• City population: 3,226,434
• Metro: Houston-The Woodlands-Sugar Land, TX
• Population (ZIP): 35,997
• Household income: $71,199
• Rent vs Own: 61.8% rent · 38.2% own
• Severe rent burden: 3072.0

Population outlook (Harris County) Hauer SSP2

• Today (2025): 5,571,493 people
• By 2030: 6,089,821 · +9.3%
• By 2040: 7,142,806 · +28.2%
• By 2050: 8,185,864 · +46.9%
• By 2075: 10,574,329 · +89.8%
• By 2100: 12,109,958 · +117.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.68)
• Race & ethnicity: Black 48% White 27% Hispanic / Latino 13% Two or more races 11% Asian 8%
• Hispanic origin (detail): Mexican 9%
• Common ancestry: Lithuanian 1% Romanian 1% Italian 1%
• Foreign-born: 14% · Canada, China, South Korea
• Languages at home: 82% English-only · Spanish 10% Chinese 2% Other Indo-European 2%

Political lean MEDSL · Harris

• 2024 margin: Lean D (+5.5) · D 52.0% · R 46.4% · Other 1.6%
• 2008→2024 swing: +3.9pp toward D · 2008: 1.6pp · 2024: 5.5pp
• All cycles: 2024: D+5.5 2020: D+13.3 2016: D+12.4 2012: D+0.1 2008: D+1.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -139.34%
• Current HPI: 199.6066
• Rent YoY: ▼ -0.32%
• Metro: Houston-The Woodlands-Sugar Land, TX
• State GDP YoY: ▲ 3.95%
• F500 in state: 110

Industry mix (Fortune 500 HQ in TX)

Industry	F500 HQs	Revenue
▸Energy	16	$1,198B
▸Technology	5	$198B
▸Engineering / Construction	4	$72B
▸Energy Services	3	$60B
▸Utilities	3	$41B
▸Healthcare	2	$330B

Price history

-4.2% since first listed

12 events — show timeline

• 2026-02-19 Price Changed $430,000 HARMLS
• 2025-11-21 Price Changed $455,000 HARMLS
• 2025-10-09 Listed $470,000 HARMLS
• 2025-07-11 Listing Removed — HARMLS
• 2025-04-29 Price Changed $490,000 HARMLS
• 2025-02-11 Listed $501,000 HARMLS
• 2023-03-26 Listing Removed — HARMLS
• 2023-03-06 Sold (Public Records) — Public Records
• 2023-03-02 Sold (MLS) — HARMLS
• 2023-01-22 Listed $449,000 HARMLS
• 2022-05-27 Sold (Public Records) — Public Records
• 1988-01-02 Sold (Public Records) — Public Records

Property tax history

+5.0%/yr

Latest (2025): $6,942 · +3.7% YoY. Source: county tax records.