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Developmentmixed usedevelopmentmixed-useAustin

East Austin Mixed-Use — 23 Units + Retail

$4,722,710Austin, TXShared Mar 1, 2026by DealForge

Investment Score

78/ 100

Good Deal

Solid fundamentals, Cash-on-Cash could be stronger.

Score Breakdown

Yield on Cost
78
Dev Spread
89
DSCR
85
IRR
57
Cash-on-Cash
45
Equity Multiple
100

Reasonable

The development economics work but with limited margin. 2.7% spread and 1.60x DSCR. Tighten your cost estimates and build in adequate contingency. A disciplined execution can make this work.

What Does the Project Actually Cost?

Land: $850,000 + Closing: $25,000 + Entitlement: $120,000 Hard Costs: $2,800,000 + Soft Costs: $392,000 (14%) + Contingency: $280,000 (10%) Carry Costs: $119,000 (14 months × $8,500/mo) Construction Loan Interest: $136,710 **Total Development Cost: $4,722,710** Equity Required: $2,292,310 ✓ Contingency at 10% provides a reasonable buffer.

What Will It Produce at Stabilization?

Gross Potential Income: $564,000 Effective Gross Income: $552,312 (after vacancy) Operating Expenses: $142,920 **Stabilized NOI: $409,392** Development Yield (NOI ÷ Total Cost): 8.7% Exit Cap Rate: 6.0% Development Spread: 2.7% ✓ 2.7% spread is strong compensation for development risk.

Permanent Financing Test

Permanent Loan: $3,150,000 @ 6.5% for 25 years Monthly Mortgage: $21,269 Annual Debt Service: $255,228 Stabilized NOI ($409,392) − Debt ($255,228) = $154,164/yr DSCR: 1.60x ✓ DSCR of 1.60x provides healthy debt coverage.

Key Metrics

Total Dev Cost

$4,722,710

Dev Yield

8.67%

Dev Spread

2.67%

DSCR

1.60

Stabilized NOI

$409,392

Cash-on-Cash

6.73%

IRR

14.17%

Equity Multiple

3.63x

Share This Analysis

East Austin Mixed-Use — 23 Units + Retail
Market: Austin, TX
Purchase price: $4,722,710
Dev Yield: 8.67%
DSCR: 1.60
Stabilized NOI: $409,392
Score: 78/100
Verdict: Reasonable
Full analysis: dealforgehq.com/share/example-austin-mixed-use-development

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Financing Terms

Loan Type

conventional

Down Payment

25%

Interest Rate

6.5%

Loan Term

25 years

Full Analysis

What Does the Project Actually Cost?
Land: $850,000 + Closing: $25,000 + Entitlement: $120,000 Hard Costs: $2,800,000 + Soft Costs: $392,000 (14%) + Contingency: $280,000 (10%) Carry Costs: $119,000 (14 months × $8,500/mo) Construction Loan Interest: $136,710 **Total Development Cost: $4,722,710** Equity Required: $2,292,310 ✓ Contingency at 10% provides a reasonable buffer.
What Will It Produce at Stabilization?
Gross Potential Income: $564,000 Effective Gross Income: $552,312 (after vacancy) Operating Expenses: $142,920 **Stabilized NOI: $409,392** Development Yield (NOI ÷ Total Cost): 8.7% Exit Cap Rate: 6.0% Development Spread: 2.7% ✓ 2.7% spread is strong compensation for development risk.
Permanent Financing Test
Permanent Loan: $3,150,000 @ 6.5% for 25 years Monthly Mortgage: $21,269 Annual Debt Service: $255,228 Stabilized NOI ($409,392) − Debt ($255,228) = $154,164/yr DSCR: 1.60x ✓ DSCR of 1.60x provides healthy debt coverage.
Return Profile
Stabilized Value: $6,823,200 Value Created: $2,100,490 Cash-on-Cash Return: 6.7% ROI (5-Year): 163.0% IRR: 14.2% Equity Multiple: 3.63x
My Straight Answer
The development economics work but with limited margin. 2.7% spread and 1.60x DSCR. Tighten your cost estimates and build in adequate contingency. A disciplined execution can make this work.

Benchmarks used in this analysis (cap rates, SDE multiples, expense ratios) are derived from national averages by asset class and business type, drawing on industry data sources such as CBRE, Marcus & Millichap, BizBuySell, and IBBA market reports. These are broad benchmarks — they are NOT specific to your local market. Actual cap rates, multiples, and pricing in your area may differ significantly based on local supply/demand, population trends, economic conditions, and comparable sales. Always validate with local comps, broker opinion, and an independent appraisal before making an offer.

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Disclaimer: This analysis is for informational purposes only and does not constitute financial, legal, tax, or investment advice. All projections are estimates based on user-provided inputs. Conduct independent due diligence before making financial decisions.

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