1502 39th St · Galveston, TX 77550

$1,175,000

11 bd · None ba · 13,000 sqft · MultiFamily · 147 Days on market

Built 1924 Good condition 7,740 sqft lot $90/sqft · 27% below area Est $1618k · 27% under

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Why this score? — see what drove the B 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 +28.3/30.0
• ARV discount +15.0/15.0
• DSCR +10.0/10.0
• 1% rule +7.8/10.0
• Condition / age +4.0/5.0
• Livability +3.8/5.0
• Schools +3.0/10.0
• Rent growth +2.2/5.0
• 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

Large two story prominent corner historic brick building, circa 1924, with 9 first floor rental areas: 7 facing 39th Street and two facing Avenue N. The upstairs has two large condo-type areas with one having 7 bedrooms surrounding two common areas, a kitchen and 1 1/2 baths and the other having 4 bedrooms and a kitchen and bath. A large private roof patio area, with covered bar area, separates the two upstairs living areas. Hot tub area, with patio and private staircase downstairs. The property is among the many up and coming 39th Street establishments.

Key facts

• Private staircase
• Covered bar area
• Hot tub area

Tags

• LARGE PRIVATE ROOF PATIO
• COVERED BAR AREA
• HOT TUB AREA
• PRIVATE STAIRCASE

What this means for you Summary

Snapshot

• This is a 11-bed/?-bath multifamily listed at $1.18M. Condition is rated good.

Deal economics

• At list price, monthly cash flow is $4k ($45k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($15k rent vs $1.18M).
• Recommended offer: $1.03M (12.0% below list) — sets the bar for market timing.
• Cap rate 10.2% vs local median 0.1% in Galveston — 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 76/100 on livability (#108 in TX, #3,559 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: amenities D+, employment D, crime F.
• Galveston ISD (town): math 33% / reading 39% proficiency, ranked #514 of 826 in TX (top 62%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents soft (-1.1%/yr); 622 active listings in the ZIP; 3,258 units permitted in Galveston County in 2024 (0 in 5+ unit buildings).
• At $15,063/mo this rent would consume 401% of the median local household income ($45k/yr) (locally 2193% 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 $8k of loan paydown is wiped out by about $35k of value loss. Plan a longer hold.
• Galveston County population projected at +43% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 147 days — a 12% lower offer ($1.03M) is reasonable based on typical stale-listing flexibility.
• 6 sale attempts since 5y ago; this cycle's ask has dropped $75k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Watch-outs: built in 1924 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $1,034,000 (12.0% below list)

Questions for the listing agent

1. It's been on market 147 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 1924 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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.
7. 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.
8. 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: 1.28% ✓
• Cap rate: 10.15%
• Cash-on-cash: 13.79%
• DSCR: 1.61
• GRM: 6.5

CMA / ARV

• ARV (median comp): $1,617,657
• List price: $1,175,000
• Delta: -27.36%
• Verdict: UNDERPRICED
• Comps: 4 within 2.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: 0.5%
• Equity multiple: 1.02×
• Total profit: $6,408
• Equity at exit: $175,196

10-year hold

• IRR: 6.8%
• Equity multiple: 1.44×
• Total profit: $145,878
• Equity at exit: $101,593

Cash invested: $329,000 (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 77550

• Home prices YoY: -32.9%
• Rents YoY: -1.1%
• Active inventory: 622
• Price-to-rent: 47.1×

Monthly cashflow live

• Estimated rent: $15,063 medium
• Mortgage (P&I): −$6,162
• Tax est. 1.5%: −$1,469 /mo · $17,625/yr
• Insurance: −$490
• HOA: −$0
• Vacancy / Maint / Mgmt: −$3,163
• Net cashflow: $3,780

Break-even live

Break-even rent $10,279

Max offer price $1,175,000

Occupancy floor 70%

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

Units	Beds	Baths	Est. rent
1× unit	7	1.5	$2,080
1× unit	4	1	$1,990
▸ 7× units	0	0	$10,990
Total (9 units)			$15,063

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: $293,750
• Closing costs: $35,250
• Reserves months: —
• Total cash needed: —

Listing history 33 events

1. 2026-06-18
   days on market $1,175,000 Active 147 DOM
2. 2026-06-17
   days on market $1,175,000 Active 146 DOM
3. 2026-06-16
   days on market $1,175,000 Active 145 DOM
4. 2026-06-15
   days on market $1,175,000 Active 144 DOM
5. 2026-06-13
   days on market $1,175,000 Active 142 DOM
6. 2026-06-09
   days on market $1,175,000 Active 138 DOM
7. 2026-06-08
   days on market $1,175,000 Active 137 DOM
8. 2026-06-07
   days on market $1,175,000 Active 136 DOM
9. 2026-06-04
   days on market $1,175,000 Active 133 DOM
10. 2026-06-03
    days on market $1,175,000 Active 132 DOM
11. 2026-06-02
    days on market $1,175,000 Active 131 DOM
12. 2026-06-01
    days on market $1,175,000 Active 130 DOM
13. 2026-05-31
    days on market $1,175,000 Active 129 DOM
14. 2026-03-13
    price $1,175,000 560-char remark

    Show marketing remark (560 chars)

    Large two story prominent corner historic brick building, circa 1924, with 9 first floor rental areas: 7 facing 39th Street and two facing Avenue N. The upstairs has two large condo-type areas with one having 7 bedrooms surrounding two common areas, a kitchen and 1 1/2 baths and the other having 4 bedrooms and a kitchen and bath. A large private roof patio area, with covered bar area, separates the two upstairs living areas. Hot tub area, with patio and private staircase downstairs. The property is among the many up and coming 39th Street establishments.

15. 2026-01-20
    listed $1,250,000 Active 560-char remark

    Show marketing remark (560 chars)

    Large two story prominent corner historic brick building, circa 1924, with 9 first floor rental areas: 7 facing 39th Street and two facing Avenue N. The upstairs has two large condo-type areas with one having 7 bedrooms surrounding two common areas, a kitchen and 1 1/2 baths and the other having 4 bedrooms and a kitchen and bath. A large private roof patio area, with covered bar area, separates the two upstairs living areas. Hot tub area, with patio and private staircase downstairs. The property is among the many up and coming 39th Street establishments.

16. 2026-01-02
    historical
17. 2025-08-11
    price $1,250,000
18. 2025-06-11
    price $1,399,000
19. 2025-04-04
    listed $1,499,000 Active
20. 2025-04-04
    historical
21. 2025-04-01
    price $1,499,000
22. 2024-11-13
    listed $1,599,900 Active
23. 2024-11-12
    historical
24. 2022-08-08
    soldstatus Sold
25. 2022-06-16
    status Pending
26. 2022-06-06
    status Option Pending
27. 2022-05-18
    listed $825,000 Active
28. 2022-05-16
    historical
29. 2022-05-04
    status Active
30. 2022-04-26
    status Pending, Continue to Show
31. 2022-01-11
    price $825,000
32. 2021-09-07
    price $875,000
33. 2021-07-27
    listed $950,000 Active

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

Taxation est. · year 1

• Rental income: $180,756
• − Mortgage interest: −$65,818
• − Property taxes: −$17,625
• − Insurance: −$5,875
• − Repairs & maintenance: −$14,460
• − Management: −$14,460
• − Depreciation: −$34,182
• Taxable income: $28,335
• Est. tax owed @ 24.0%: −$6,800
• After-tax cash flow: $38,555/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.

Condition & rehab AI · 13 photos

Good 80/100 Cosmetic rehab

This multi-family property is in good condition with a good condition score of 80. It has a cosmetic rehab level and requires minor maintenance. The property has a good resale and rental value with high ROI updates such as updating landscaping and installing smart home technology.

Value-add opportunities

• Both Update landscaping and add curb appeal — Enhances curb appeal and can attract more tenants
• Both Install smart home technology — Improves convenience and can be marketed as a modern feature

Renovation cost estimate screening

Value-add ROI direction

• Both Update landscaping and add curb appeal — Enhances curb appeal and can attract more tenants ↑
• Both Install smart home technology — Improves convenience and can be marketed as a modern feature ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Galveston ISD
• NCES district ID: 4820280
• Math proficiency: 33% ▼ -14.00%
• Reading proficiency: 39% ▼ -4.00%
• Median HH income: $40,162
• Composite: 30.22/100
• National rank: #6299
• State rank: #514 of 826 in TX

Livability — Galveston

• Score: 76/100
• State rank: #108
• US rank: #3559

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Galveston, TX
• County: Galveston County · 357,330 people
• City population: 55,599
• Metro: Houston-The Woodlands-Sugar Land, TX
• Population (ZIP): 23,489
• Household income: $45,047
• Rent vs Own: 60.0% rent · 40.0% own
• Severe rent burden: 2193.0

Population outlook (Galveston County) Hauer SSP2

• Today (2025): 390,640 people
• By 2030: 425,226 · +8.9%
• By 2040: 493,765 · +26.4%
• By 2050: 559,698 · +43.3%
• By 2075: 719,260 · +84.1%
• By 2100: 819,628 · +109.8%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.66)
• Race & ethnicity: White 46% Hispanic / Latino 30% Two or more races 19% Black 19% Asian 3%
• Hispanic origin (detail): Mexican 21% Puerto Rican 1%
• Common ancestry: Lithuanian 2% Italian 2% Romanian 1%
• Foreign-born: 11% · Canada, Jamaica
• Languages at home: 75% English-only · Spanish 18% Other Asian/Pacific 2% Russian/Polish/Slavic 1%

Political lean MEDSL · Galveston

• 2024 margin: Strong R (+27.4) · D 35.7% · R 63.1% · Other 1.2%
• 2008→2024 swing: -7.9pp toward R · 2008: -19.5pp · 2024: -27.4pp
• All cycles: 2024: R+27.4 2020: R+22.6 2016: R+22.6 2012: R+26.9 2008: R+19.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -158.96%
• Current HPI: 324.2159
• Rent YoY: ▼ -1.12%
• 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

+23.7% since first listed

20 events — show timeline

• 2026-03-13 Price Changed $1,175,000 HARMLS
• 2026-01-20 Listed $1,250,000 HARMLS
• 2026-01-02 Listing Removed — HARMLS
• 2025-08-11 Price Changed $1,250,000 HARMLS
• 2025-06-11 Price Changed $1,399,000 HARMLS
• 2025-04-04 Listing Removed — HARMLS
• 2025-04-04 Listed $1,499,000 HARMLS
• 2025-04-01 Price Changed $1,499,000 HARMLS
• 2024-11-13 Listed $1,599,900 HARMLS
• 2024-11-12 Coming Soon — HARMLS
• 2022-08-08 Sold (MLS) — HARMLS
• 2022-06-16 Pending — HARMLS
• 2022-06-06 Pending — HARMLS
• 2022-05-18 Listed $825,000 HARMLS
• 2022-05-16 Listing Removed — HARMLS
• 2022-05-04 Relisted — HARMLS
• 2022-04-26 Pending — HARMLS
• 2022-01-11 Price Changed $825,000 HARMLS
• 2021-09-07 Price Changed $875,000 HARMLS
• 2021-07-27 Listed $950,000 HARMLS