Income-Generating Short-Term Rental
For Sale
$1,100,000
931 Sycamore Creek Dr, Dripping Springs, TX 78620
Eight rental units on four acres, including cabins, tiny homes, and a front-positioned manufactured home.
Property Size3,980 SF
Lot Size4.00 Acres
Days on Market132
Property Features for 931 Sycamore Creek Dr
General Information
Standard status
Active
Size
3,980 SF
Lot size
4.00 Acres
Property subtype
Commercial
Additional Details
Furnished
Yes
Business Included
Yes
Multifamily Units
8
Building Details
Building Size
3,980 SF
Year Built
2000
Tenancy
Multi
Listed By:
Terry Swets
(512) 909-4009
Source:
Elliman
Added: Apr 28
Changed: Sep 2
Last Checked: Sep 5 at 11:19AM
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 Terry Swets
Investment Insights
Based on property information with market context.
This property is an eight-unit income-producing short-term rental compound on approximately four acres. The setup includes four cabins and three tiny homes, along with a three-bedroom, two-bath manufactured home positioned at the front of the property.
The compound is presented as fully operational and designed to support guest stays with separate outdoor spaces tied to a Hill Country setting. The layout is described as offering privacy and flexibility for a range of short-term uses, and the listing notes that weddings and special events would require buyer verification.
For day-to-day oversight, the front manufactured home is positioned as a fit for an on-site owner or property manager, or as additional rental income.
The compound is presented as fully operational and designed to support guest stays with separate outdoor spaces tied to a Hill Country setting. The layout is described as offering privacy and flexibility for a range of short-term uses, and the listing notes that weddings and special events would require buyer verification.
For day-to-day oversight, the front manufactured home is positioned as a fit for an on-site owner or property manager, or as additional rental income.
Key Highlights
- 8 rental units on 4 acres, built in 2000
- Unit mix includes four cabins and three tiny homes
- Front‑positioned 3‑bedroom, 2‑bath manufactured home on site
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
$61,010
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
5.55%
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%
$1,220,200
$1.2M
Cap Rate 7%
$871,571
$871.6K
Cap Rate 9%
$677,889
$677.9K
Market Conditions
NOI Build-Up for 3,980 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
$117.0K $29.40/SF
− Vacancy
−$6.1K −$1.53/SF
EGI
$110.9K $27.87/SF
− OpEx
−$49.9K −$12.54/SF
NOI
$61.0K $15.33/SF
Area
Hays County, TX
Vacancy
5.20%
Lease Rate
$29.40 /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%
$1,220,200
Cap Rate 7%
$871,571
Cap Rate 9%
$677,889
Alternative Uses
Best Use
Apartment 5plus
$871.6K
$762.6K – $1.02M
NOI $61,010 @ 7.0% cap · market cap 5.55%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.66M
$1.46M – $1.94M
NOI $116,462 @ 7.0% cap · market cap 10.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
8
Residential units
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
7
Businesses Nearby
Explore this area
Business Placement
Demographics for 78620, TX
20,493
Population
7,929
Households
2.6
Avg Household Size
43
Median Age
62%
College-Educated
97%
High-School Grad
175.6 sq mi
ZIP Area
117
Density / Sq Mi
$146,551
Median Household Income
$58,583
Median Earnings
$1,674
Median Rent
$624,800
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 - Eight rental units on four acres, including cabins, tiny homes, and a front-positioned manufactured home.
Where is this short term rental property located?
The property is located at 931 Sycamore Creek Dr Dripping Springs, TX.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: 8 rental units on 4 acres, built in 2000; Unit mix includes four cabins and three tiny homes; Front‑positioned 3‑bedroom, 2‑bath manufactured home on site
