Lake Livingston STR Cabin Compound. 6 Units. One Vision.
An owner-occupied, professionally managed short-term rental compound near Lake Livingston, Texas — structured to generate cash flow, demonstrate income stability, and execute a strategic refinance.
“This project is designed to be owner-occupied, professionally operated, and held long-term. The goal is to demonstrate stable income, refinance, and redeploy capital — not to sell off assets.”
Project Summary
A 6-unit cabin compound on a single unified property — built for owner occupancy, income generation, and long-term hold.
Property Details
Owner-Occupied
Owner lives in 1 unit, providing lender comfort and hands-on operational oversight. 5 units operated as short-term rentals.
6-Unit Development
4× Aries Cista (1 Bed/1 Bath) + 2× Aries 96 (2 Bed/1 Bath). Purpose-built for STR market efficiency and guest appeal.
Hold & Refinance
Not a sale or condo model. Demonstrate 12–24 months of stable income, then execute cash-out refinance to redeploy capital.
Professional Management
Property managed professionally or semi-professionally. Consistent guest experience. Optimized for Airbnb performance.
Experienced Sponsor
This is the first of multiple FreedomSync developments. Strategy is repeatable. Proven approach to STR asset creation.
Long-Term Ownership
Retain ownership after refinance. Build equity while generating cash flow. Scale to next project with recycled capital.
Unit Mix & Occupancy Strategy
Development Program (6 Units)
Occupancy Strategy
Cabin Models
Purpose-built prefab cabins optimized for the short-term rental market. Efficient, attractive, and guest-ready.
Aries Cista — 1 Bed / 1 Bath
Efficient Prefab Cabin (Under 400 sq ft)
Target: Couples, solo travelers, weekend getaways
Aries 96 — 2 Bed / 1 Bath
Larger Family Cabin
Target: Families, groups, premium guests
Full Cost Breakdown
Manufacturer-verified costs. Two-phase execution for risk management and capital deployment.
Land + Kits + Heavy Infrastructure
The "risk + setup" phase — land acquisition, ordering all cabin kits, major site prep, utilities backbone, septic, access
Build-Out & Turnkey Finish
ImprovedThe "vertical + income" phase — assembly, mechanical systems, interior finish, furnishings. Phase 2 construction and build-out costs have been reduced based on updated vendor pricing, improving project returns and refinance resilience.
Total Project Cost
~$800,000 all-in (clean, round number for underwriting)
Stabilized Operating Performance
Conservative 60% occupancy assumptions. Strong yield on cost. Clear NOI calculation.
Gross Annual Revenue (5 Rental Units @ 60% Occupancy)
1-Bed / 1-Bath (Aries Cista)
2-Bed / 1-Bath (Aries 96)
Operating Expenses
~29% expense ratio — aggressive but defensible with owner-operated, hands-on oversight
Net Operating Income (NOI) & Yield on Cost
Financing Scenarios
Three pathways to capital. Each scenario stress-tested for DSCR compliance.
Traditional Financing
Owner-occupied STR friendly lender
Hard Money
Bridge to refinance after stabilization
Private Investor
Equity or preferred return structure
36-Month Refinance Exit Strategy
The roadmap to capital recovery, long-term ownership retention, and reinvestment.
Months 0–9
Development & Construction
Site prep, cabin installation, furnishing, listing setup
Months 9–24
Stabilization Period
Ramp up occupancy, build reviews, demonstrate income
Months 18–24
Income Documentation
12–24 months of verified STR income history
Months 24–36
Cash-Out Refinance
Appraisal based on income approach, capital recovery
Risk Mitigation
- Owner on-site provides operational oversight and lender confidence
- Conservative 50% occupancy assumptions leave room for variance
- Strong DSCR ratios across all financing scenarios
- Lake Livingston proven STR market with year-round demand
Capital Recovery Strategy
- Appraisal based on income approach (NOI ÷ cap rate)
- Target 70–75% LTV cash-out refinance
- Recycle capital into next FreedomSync project
- Retain long-term ownership with stabilized cash flow
Refinance Analysis
Conservative underwriting across multiple occupancy scenarios. Income-based valuation and refinance sizing.
Revenue by Occupancy Scenario
5 rental units (3× 1-bed @ $150/night + 2× 2-bed @ $190/night) × 365 nights/year
| Occupancy | 1-Bed Revenue | 2-Bed Revenue | Gross Revenue |
|---|---|---|---|
| 45% | $73,913 | $62,415 | $136,328 |
| 50% | $82,125 | $69,350 | $151,475 |
| 55% | $90,338 | $76,285 | $166,623 |
| 60% (Stabilized) | $98,550 | $83,220 | $181,770 |
Net Operating Income (NOI) by Scenario
Operating Expenses: 15% management + 3% platform + $20,000 fixed (utilities/cleaning/maintenance)
| Occupancy | Gross Revenue | Operating Expenses | Annual NOI | Monthly NOI |
|---|---|---|---|---|
| 45% | $136,328 | $44,539 | $91,789 | $7,649 |
| 50% | $151,475 | $47,266 | $104,209 | $8,684 |
| 55% | $166,623 | $49,992 | $116,631 | $9,719 |
| 60% (Stabilized) | $181,770 | $52,718 | $129,052 | $10,754 |
DSCR Analysis
Debt Service Coverage Ratio at stabilized NOI ($129,052/year)
🟢 Very Strong — All scenarios comfortably exceed lender minimum (1.25x)
Income-Based Valuation
Property value = NOI ÷ Cap Rate (Stabilized NOI: $129,052)
Haircut for lender presentation
Income-implied value
Income-Implied Range: $1.84M – $1.98M
$1.6M is conservative, not aggressive
Refi Proceeds @ $1.6M (Conservative Case)
Base refinance valuation reflects a conservative haircut to income-based value
Comfortably supports all payoffs with margin
Additional upside if income-based valuation achieved
Illustrative Refinance Waterfall (70% LTV @ $1.6M)
$10,754/month
3-Year Income Ramp-Up Projection
Conservative stabilization timeline for lender presentation
| Year | Occupancy | Gross Revenue | Operating Expenses | Annual NOI | Yield on Cost |
|---|---|---|---|---|---|
| Year 1 (Ramp-up) | 45% | $136,328 | $44,539 | $91,789 | 11.5% |
| Year 2 (Stabilizing) | 52% | $157,534 | $48,356 | $109,178 | 13.7% |
| Year 3 (Stabilized) | 60% | $181,770 | $52,718 | $129,052 | 16.2% |
Investment Positioning Summary
Lender confidence
Build equity over time
Consistent income
Capital recycling
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10% preferred return • 36-month refinance exit • Sponsors paid last
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