Historic Home with Commercial
For Sale
$750,000
Pending
606 S Key Ave, Lampasas, TX 76550
1904 historic home with income potential and commercial zoning.
Property Size3,382 SF
Days on Market128
Property Features for 606 S Key Ave
General Information
Standard status
Pending
Size
3,382 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$6,885
Building Details
Building Size
3,382 SF
Year Built
1904
Listing Agency:
Carpenter Real Estate
(512) 751-3688
Listed By:
Colleen Eckermann · License #0801462
(512) 751-3688
Source:
Elliman
Added: Apr 24
Changed: Aug 24
Last Checked: Aug 28 at 3:34PM
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 Carpenter Real Estate
Investment Insights
Based on property information with market context.
This 3,382 square-foot historic home, built in 1904, features timeless charm and craftsmanship. Currently operating as a short-term rental, the property offers income potential and versatility. With commercial/retail zoning, the property can be used as boutique retail, professional office space, a bed and breakfast, or continued short-term rental. Soaring ceilings, original woodwork, stained glass accents, and multiple fireplaces create a warm atmosphere. The grand staircase and fireplace mantels showcase exceptional detail. Large windows invite natural light while highlighting the historic character. Features include an expansive covered porch and a garden tub. The property has a bike score of 50, making it bikeable, and a walk score of 73, indicating it is very walkable.
Key Highlights
- Historic 1904 home with 3,382 sq ft of timeless charm and original craftsmanship.
- Commercial/retail zoning allows for diverse uses: residential, retail, office, B&B, or STR.
- Currently operating as a short‑term rental with income potential.
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
$27,044
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
3.61%
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%
$540,880
$540.9K
Cap Rate 7%
$386,343
$386.3K
Cap Rate 9%
$300,489
$300.5K
Market Conditions
NOI Build-Up for 3,382 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
$52.8K $15.60/SF
− Vacancy
−$3.6K −$1.06/SF
EGI
$49.2K $14.54/SF
− OpEx
−$22.1K −$6.54/SF
NOI
$27.0K $8.00/SF
Area
Lampasas County, TX
Vacancy
6.80%
Lease Rate
$15.60 /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%
$540,880
Cap Rate 7%
$386,343
Cap Rate 9%
$300,489
Alternative Uses
Best Use
Apartment 5plus
$386.3K
$338.1K – $450.7K
NOI $27,044 @ 7.0% cap · market cap 3.61%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$812.3K
$710.8K – $947.7K
NOI $56,863 @ 7.0% cap · market cap 7.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
510
Businesses Nearby
Explore this area
Business Placement
Demographics for 76550, TX
12,840
Population
6,129
Households
2.1
Avg Household Size
44
Median Age
22%
College-Educated
90%
High-School Grad
541.5 sq mi
ZIP Area
24
Density / Sq Mi
$73,697
Median Household Income
$34,970
Median Earnings
$902
Median Rent
$237,600
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?
Short term rental property - 1904 historic home with income potential and commercial zoning.
Where is this short term rental property located?
The property is located at 606 S Key Ave Lampasas, TX.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: Historic 1904 home with 3,382 sq ft of timeless charm and original craftsmanship.; Commercial/retail zoning allows for diverse uses: residential, retail, office, B&B, or STR.; Currently operating as a short‑term rental with income potential.
