Eight-Cabin Short-Term Rental
For Sale
$3,200,000
506 E Ufer St, Fredericksburg, TX 78624
Purpose-built lodging community with detached guest cabins, private outdoor areas, and contactless guest access.
Property Size3,928 SF
Price / SF$814.66
Days on Market13
Property Features for 506 E Ufer St
General Information
Standard status
Active
Size
3,928 SF
Units
Unit Mix
8 x 1BR/1BA
Multifamily Units
8
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$18,734
Amenities
fireplace
covered front porch
private back patio
kitchenette
keypad self check-in
ada accessible cabin
Building Details
Buildings
8
Listing Agency:
eXp Realty
(210) 289-6293
Listed By:
Michael Lugo · License #0657886
(210) 289-6293
Source:
Exprealty
Added: Aug 12
Changed: Aug 24
Last Checked: Aug 24 at 2:00PM
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 eXp Realty
Investment Insights
Based on property information with market context.
The property consists of eight detached guest cabins developed in 2021 as a purpose-built short-term rental community. Each cabin accommodates two guests in a 1BR/1BA layout and includes a kitchenette, fireplace, covered front porch, private back patio, and keypad entry for self check-in. One cabin provides ADA-accessible features, including a roll-in shower, grab bars, and accessible parking.
Located at 506 E Ufer St in Fredericksburg, the compound sits two blocks from Main Street and within walking distance of shopping, tasting rooms, and restaurants. The cabins operate under single ownership with a seven-year operating history and an established guest review base. The multi-cabin format also supports consideration of long-term rental, executive or mid-term stay, event, and small-retreat uses described for the property.
Located at 506 E Ufer St in Fredericksburg, the compound sits two blocks from Main Street and within walking distance of shopping, tasting rooms, and restaurants. The cabins operate under single ownership with a seven-year operating history and an established guest review base. The multi-cabin format also supports consideration of long-term rental, executive or mid-term stay, event, and small-retreat uses described for the property.
Key Highlights
- Eight detached guest cabins, each configured as a 1BR/1BA unit for 2 guests
- Individual cabins include kitchenettes, fireplaces, covered front porches, and private back patios
- One ADA‑accessible cabin includes a roll‑in shower, grab bars, and accessible parking
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
$208,223
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
6.51%
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%
$4,164,460
$4.2M
Cap Rate 7%
$2,974,614
$3.0M
Cap Rate 9%
$2,313,589
$2.3M
Market Conditions
NOI Build-Up for 3,928 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
$471.4K $120.00/SF
− Vacancy
−$33.0K −$8.40/SF
EGI
$438.4K $111.60/SF
− OpEx
−$230.1K −$58.59/SF
NOI
$208.2K $53.01/SF
Area
Gillespie County, TX
Vacancy
7.00%
Lease Rate
$120.00 /SF/Yr
Expense Ratio
52.50%
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%
$4,164,460
Cap Rate 7%
$2,974,614
Cap Rate 9%
$2,313,589
Alternative Uses
Best Use
Hotel Hospitality
$2.97M
$2.60M – $3.47M
NOI $208,223 @ 7.0% cap · market cap 6.51%
Second Best
Apartment 5plus
$394.4K
$345.1K – $460.1K
NOI $27,605 @ 7.0% cap · market cap 0.86%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
8
Residential units
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
1,151
Businesses Nearby
Explore this area
Business Placement
Demographics for 78624, TX
23,080
Population
12,421
Households
1.9
Avg Household Size
52
Median Age
37%
College-Educated
89%
High-School Grad
742.3 sq mi
ZIP Area
31
Density / Sq Mi
$67,987
Median Household Income
$37,047
Median Earnings
$1,347
Median Rent
$439,600
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 - Purpose-built lodging community with detached guest cabins, private outdoor areas, and contactless guest access.
Where is this short term rental property located?
The property is located at 506 E Ufer St Fredericksburg, TX.
What is the asking price?
The asking price for this property is $3,200,000.
What are key features of this property?
This property features: Eight detached guest cabins, each configured as a 1BR/1BA unit for 2 guests; Individual cabins include kitchenettes, fireplaces, covered front porches, and private back patios; One ADA‑accessible cabin includes a roll‑in shower, grab bars, and accessible parking
