Real Estate Investor · Austin, TX · Member since 2016 · 6 posts · 3 votes
Hi everyone,
I've had some success Airbnbing a property in my hometown of Austin, Texas. The market for short term rentals here is obviously pretty high and exacerbated by the squeeze in our longer term rental market.
I'm looking to purchase property in either Waco or San Antonio and was interested if anyone had thoughts on areas that might be good for this or people to connect to in those areas, particularly in San Antonio.
From what I can gather from San Antonio a duplex, 4plex, or SFR for the purpose of renting it out on Airbnb could work. The research I've done it seems to point to purchasing within 1.5 miles of the Pearl area. I'd prefer to keep my total costs under 150k but can do more for the right multi-family.
I'm a cash investor and would also appreciate any thoughts on avenues for getting deals off the MLS. Any wholesalers or other REIs who might have access to excellent deals.
Real Estate Broker · San Antonio, TX · Member since 2016 · 234 posts · 85 votes
10y
Your approach of looking around the Pearl is good as far as location goes. Unfortunately the Pearl development has driven prices up all around that area. I would continue to look near the downtown area as the City is dumping lots of money into downtown development. The 1604/IH-10 area is good as well for visitors to stay. Lots to do out there.
Rental Property Investor · San Antonio, TX · Member since 2011 · 512 posts · 290 votes
10y
Saw a guy on Air bnb who was renting houses short term near sea world (San antonio). I messaged him and he was transitioning long terms to short term rentals over there so it must be working. Prices are not too high over that way. Just a thought.
Investor · San Antonio, TX · Member since 2013 · 206 posts · 71 votes
10y
@Shawn Nikah I'd look at Manche Park which is in between the Perl and Alamo Heights. Also South Town is blowing up like crazy and so are areas by the Alamo dome.
Real Estate Investor · Austin, TX · Member since 2016 · 6 posts · 3 votes
10y
Great advice @Will Pritchett. What were the house sizes and rents? I'm convinced that even with the larger expenses, at 50% rental for the month you can cash flow like crazy. I have a 1/1 cottage behind my house here in Austin and it does $1500 a month.
@Rich Ferradino I really like the idea of Manche Park. I also recently saw a commercial property with a duplex on it near the Alamo Dome for under $150k. Have any experience on commercial properties, rental rates, and valuation?
Rental Property Investor · San Antonio, TX · Member since 2011 · 512 posts · 290 votes
10y
@Shawn Nika. Can't get the "tag" function to work for names. Sorry.
The homes were large - over 1500 sqft if I recall. Maybe search air bnb site around sea world. They looked nice. Have you systemitized yours so that it can run without you? I agree that it could cash flow but not sure how it would work when I am away.
Also not sure if HOAs can stop owners from doing short term rentals. I have heard the military bases also have students etc that come to town for certain trainings and need a place to stay. Might level off the "off season" for theme parks??
Investor · San Antonio, TX · Member since 2013 · 206 posts · 71 votes
10y
you actually have to get your house registered with the city in order to have your house a vacation rental, and then you have send a letter to the neighbors telling them it's a vacation rental. You can only have so many vacation rentals in a certain area. I'd check with the city to see how many licenses to operate are available in your area before buying.
This is very interesting @Rich Ferradino just bumping into this now. Do you happen to know how many Airbnb you can have up and operating in San Antonio, TX; perhaps I can place a few under my wife name?