Historic Fredericksburg B&B Investment
For Sale
Contact for pricing
514 W Austin St, Fredericksburg, TX 78624
Turnkey B&B complex in Fredericksburg's Historic District.
Property Size2,279 SF
Price / SF$614.30
Days on Market996
Property Features for 514 W Austin St
General Information
Standard status
Active
Size
2,279 SF
Class
A
Property subtype
Multifamily
Zoning
R-2
Building Details
Year Built
1904
Year Renovated
2020
Buildings
3
Units
3
Listing Agency:
Fore Premier Properties
Listed By:
Adam Carroll · License #TX748612
(830) 307-8679
Source:
Crexi
Added: Dec 11, 2023
Changed: Aug 17
Last Checked: Sep 1 at 12:16PM
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 Fore Premier Properties
Investment Insights
Based on property information with market context.
The Historic Durst Haus presents an investment opportunity in Fredericksburg, TX. This maintained B&B complex features 3 fully permitted STR units within the city’s Historic District, located blocks from Main Street. The property includes the Main Haus, dating back to 1904, a restored 2-bedroom, 2-bath home that retains its historic character while boasting modern updates. It features a living room, a kitchen, and front and back screened porches. The Durst Log Cabin offers a 1-bedroom, 1-bath retreat with a kitchenette. The Durst Studio Suite is a 1-bedroom, 1-bath space with a kitchenette. Each unit features its own private outdoor space. The property size is 2279 square feet. This is a turnkey property ready to welcome guests year-round.
Key Highlights
- Turnkey B&B complex with 3 fully permitted STR units in Fredericksburg's Historic District.
- Prime location:** Just blocks from Main Street, offering walkable convenience to shops and restaurants.
- Historic charm with modern updates: Main Haus dates back to 1904 and is lovingly restored.
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
$120,810
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
8.63%
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%
$2,416,200
$2.4M
Cap Rate 7%
$1,725,857
$1.7M
Cap Rate 9%
$1,342,333
$1.3M
Market Conditions
NOI Build-Up for 2,279 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
$273.5K $120.00/SF
− Vacancy
−$19.1K −$8.40/SF
EGI
$254.3K $111.60/SF
− OpEx
−$133.5K −$58.59/SF
NOI
$120.8K $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%
$2,416,200
Cap Rate 7%
$1,725,857
Cap Rate 9%
$1,342,333
Alternative Uses
Best Use
Hotel Hospitality
$1.73M
$1.51M – $2.01M
NOI $120,810 @ 7.0% cap · market cap 8.63%
Second Best
Apartment 5plus
$228.8K
$200.2K – $266.9K
NOI $16,016 @ 7.0% cap · market cap 1.14%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
941
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 - Turnkey B&B complex in Fredericksburg's Historic District.
Where is this short term rental property located?
The property is located at 514 W Austin St Fredericksburg, TX.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: Turnkey B&B complex with **3 fully permitted STR units** in Fredericksburg's Historic District.; Prime location:** Just blocks from Main Street, offering walkable convenience to shops and restaurants.; Historic charm with modern updates: Main Haus dates back to 1904 and is lovingly restored.
