Active Listing  ·  220 days on market

402 Island Dr #B

Horseshoe Bay, TX 78657
$1,890,000
4 Bed 3 Bath 2,442 sqft $774/sqft Built 1977 0.08 acres 2-Car Garage Pool Waterfront Harbortown Twnhms

Luxurious Waterfront Townhome on Lake LBJ – 402 Island Drive #B, Horseshoe Bay, TX

Discover lakeside luxury at this stunning waterfront townhome, completely remodeled in 2024 to blend modern elegance with the serene beauty of Lake LBJ. Nestled in the heart of the prestigious Horseshoe Bay community, this 4-bedroom, 3-bathroom retreat offers approximately 2,442 square feet of living space, comfortably accommodating up to 10. Imagine waking up to breathtaking lake views, stepping out to your private boat slip, and embarking on a day of boating, fishing, or simply soaking in the sun – all from your own backyard paradise.

The thoughtful two-story layout maximizes comfort and convenience.

What truly sets this property apart is its prime waterfront location on constant-level Lake LBJ. Launch your boat from your dedicated slip for exhilarating water sports, leisurely cruises, or sunset gatherings with friends. The fun of lake living is endless here.

At $774/sqft, this home is priced 68% above the Horseshoe Bay active market average of $462/sqft, reflecting premium positioning, typically tied to finishes, lot, location, or view. View Austin market report →

Location

402 Island Dr #B, Horseshoe Bay, TX 78657

Property Details

Price $1,890,000
Status Active Listing
Beds 4
Full Baths 3
Half Baths ,
Living Area 2,442 sqft
Lot Size 0.08 acres (3,332.34 sqft)
Year Built 1977
Garage 2 spaces
Stories ,
Type Residential · Townhouse
Subdivision Harbortown Twnhms
County Llano
Zip Code 78657
$/sqft $774/sqft
Days on Market ,
HOA $925/Quarterly
Annual Tax Est. $8,900.06
Pool Yes
Waterfront Yes
New Construction ,
MLS # ACT219504102
List Date February 15, 2026
Elementary School Llano
Middle School Llano
High School Llano
School District ,

Luke Allen (TREC #788149) has deep knowledge of Horseshoe Bay and surrounding markets. Whether you're buying, selling, or just researching comparable sales, reach out for a no-pressure conversation.

Schedule a Call →

Similar Homes on the Market in Horseshoe Bay

Comparable Listings Right Now

Homes currently for sale in Horseshoe Bay with similar bedroom count, size, and price range, giving you real-time context for how this property's asking price compares to the active market.

AddressList Price$/sqftBeds/BathsSqftDOMListed
701 Hi Dr None N #A
The Cottages at High Circle North
$1,950,000 $640 4 bd / 5 ba 3,045 sqft , 2026-06-08
528 Lighthouse Dr #6
Lighthouse
$1,749,000 $809 3 bd / 3 ba 2,162 sqft , 2025-10-15
103 Island Dr #8
Portofina
$1,350,000 $622 3 bd / 3 ba 2,170 sqft , 2026-03-24
101 Third Sid None W
Horseshoe Bay Proper
$1,250,000 $512 4 bd / 4 ba 2,442 sqft , 2026-07-10

Source: ACTRIS MLS, live listings. Similar by ±1 bed, ±35% price, ±35% sqft. Contact Luke for a formal comparative market analysis.

Investment Analysis

Rental Income Potential

The numbers below use conservative Austin-market assumptions. They are estimates, not a guarantee. Actual rents vary by condition, timing, and management. Read our full Austin rental property guide →

Est. Monthly Rent
$9,072/mo
0.48% rule · conservative Austin est.
Gross Yield
5.76%
Annual rent ÷ purchase price
Cap Rate (est.)
3.46%
NOI after 40% vacancy + expenses
Down Payment
$378,000
20% conventional investment loan

Monthly Cash Flow Breakdown (20% down · 7.25% rate)

Estimated Gross Rent+$9,072
Principal + Interest−$10,315
Property Tax (~2.1% TX avg)−$3,308
Insurance (~0.5%)−$788
Est. Monthly Cash Flow $-5,339

At current rates and prices, many Austin luxury properties run neutral or slightly negative on pure cash flow, appreciation and equity paydown are the primary return drivers. BRRRR and off-market acquisitions can improve day-one cash flow. Learn about the BRRRR method in Austin →

Commute & Employment

Major Employers Near Horseshoe Bay, TX

Horseshoe Bay sits within commuting range of Austin's major tech, manufacturing, and corporate campuses. Approximate drive times from this area:

Tesla Gigafactory 15-25 min E
Apple Campus (Domain) 20-30 min N
Google / Meta / Indeed 10-15 min downtown
Dell Medical School / UT Austin 10-20 min
Samsung Austin Semiconductor 25 min N

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About the Author
Luke Allen, Austin TX Realtor, TREC #788149
Luke Allen
Licensed Austin TX Realtor · TREC #788149 · Full-time since 2019
★★★★★ 5.0 on Google · 30 Reviews

Luke Allen is a full-time Austin TX Realtor with the Austin Marketing + Development Group brokerage. He works with buyers, sellers, and investors across every Austin ISD and the surrounding neighborhoods, from Downtown and East Austin to Round Rock, Cedar Park, and the Hill Country. Every page on this site is written and maintained by Luke. This page was last updated on February 17, 2026.

📞 (254) 718-2567 [email protected] More about Luke →