Austin's Newest Super Property... How one STR Deal Checked EVERY box

[Blake Anthony Carter]

Photos just dropped on one of the most insane short term rental properties I’ve seen in downtown Austin, and easily one of my favorite deals we put together this year.

I wanted to share the story behind it because it highlights what I think matters most in today's STR market: identifying properties that visually work as short term rentals, impeccable location, high level design & amenities, structuring creative finance correctly, and matching the deal with the right operator who can actually execute.

This one checked all three.

Seeing the STR Before the Numbers

When I first walked this property, before underwriting, before spreadsheets, it immediately felt like a short term rental that would outperform. The scale, the layout, the way guests would experience it. Those things are hard to quantify, but after doing this long enough you know when something has "the look." We have helped over 400 STR investors and manage or own over 100 STR's in the city. This one blew most deals I have put together out of the water from the moment I saw it.

This is a massive, multi level, brand new construction project in the heart of east downtown Austin. Six bedrooms, five and a half baths, and it had room to build out amenities that guests actually care about. Not gimmicks, but actual features that drive higher ADR and more profit.

We know that Austin STRs live and die by experience. This one had it baked in from day one.

The Deal Behind the Deal

The structure is what made this especially interesting.

The original builder is a friend of mine in the industry. Long story short, the property ended up with a private lender who was motivated to get it off their books. Price mattered, but terms mattered more.

In a different market, this would have been listed around $2.5M and sold conventionally. Instead, we were able to negotiate highly favorable seller finance terms with low money down (10%) and a low (Sub 6%) interest rate at a sub 2m purchase price, which completely changed the risk profile of the deal.

That’s something I’m seeing more of right now especially with new builds. Motivated sellers right now are accepting price or terms they wouldn’t have touched two years ago. If you know how to identify motivation and structure around it, opportunities open up that you don't even know are there.

Why This One Stood Out

The property, now branded as "The Silo in the City", is projected to be one of the top performing STRs in Austin.

Some highlights:

• Brand new construction in a prime downtown location

• Six bedrooms (permitted), which is extremely rare this close to the city core

• Pool, pickleball court, and wellness focused amenities

• Projected $350K+ in annual revenue based on actual comparable performance

• STRONG cash flow paired with long term appreciation

• Significant tax advantages for the buyer (Wiping out their tax bill)

Robuilt even called it the best Airbnb deal in all of Austin, which felt validating after seeing it from concept to execution.

The Right Buyer Matters

Deals like this only work if they go to the right operator.

Our clients and their team came in with a clear vision and the motivation to push design and amenities to the top of the market. They did not corners or chasing averages. They’re building something that stands out in a crowded city.

That’s the part people don’t talk about enough. A great deal with average execution becomes an average deal. A great deal with great execution becomes something special.

A Note on This Market

What’s been fun about this current cycle is that it rewards creativity and experience. You’re dealing with sellers who are willing to negotiate in ways that just weren’t possible in a “list it and forget it” market.

If you understand STR regulations, underwriting, guest behavior, and creative finance or value add, there are still exceptional opportunities out there, even in competitive cities like Austin.

Happy to answer questions on underwriting, structuring, or Austin STRs in general. We have been doing STR's in this city for several years and can give really good context for how to perform.

P.S. We are doing a launch party at this property this coming Saturday at 12/20. If you are in Austin and want to come through, DM me and I can send you the details!

[Collin Hays]

As I have said over and over, you're only looking for one good deal.