Good morning. I will try to keep this to the point as much as possible and not blabber away like a teenager. My name is Michael and I currently live in Rockwall TX. It is time for my family and I to seek out new career and income, and owning a / or a few rental properties had always been at the back of my mind (be your own boss mentality). So, with that in mind, I am here seeking advice / comments / suggestions on owning and renting out properties in this location. I am aware that this will take a couple of years to flourish and become a main income maker, so keep the day job at the mean time.
I had not seen any new discussion about Galveston, so I figure I will start one.
How are the prices right now as far as a house or a condo?
What are the pro / con when looking at a house and a condo?
Is it possible to pay a company to manage the house if I do not live close to Galveston? How does that cut into the income?
East or west Galveston?
I know there are so many other questions like insurance, location, type of dwelling, turn key or build from scratch, that i personally need to go down there and sit down with you guys, but for now, lets get that ball rolling.
I appreciate all input.
I'm glad to hear you're looking down here on the island! It can be a great place to invest if done right. Since Ike many investors and residents have come down here to restore damaged properties. What has resulted is an island that's in better condition than it was before the hurricane. The city has done a great job riding the waves of these improvements and doing their part to make this city better. This has cause an increased demand down here which in turn has raised prices. Condos are slower to rise than SFH but show signs of doing so.
There are many pros and cons of condos versus houses. I'd say the main ones are condos are easier to maintain but you have little control of building management and HOA fees. Houses have more general maintenance and 3 different required insurance policies but have a great opportunity for equity increase.
There are plenty of management companies and individuals for both STR and LTR and each vary in fees and services. It really depends on what you are looking for. Honestly once you have a few systems in place, self management isn't bad for a few units.
There are tons of areas, strategies, and aspects that we could discuss. If you have any particular questions or things you’d like to know more about I’d be happy to answer them to the best of my knowledge.
Have a great day!
Thanks Timothy for your info. Sorry but can you tell me what is SFH, STR, LTR?
I do see that the prices are going up and up. Recouping the initial investment will take a few years before it starts to bring in positive cash flow. From your experience, which part of town is best to look into right now? I was at the East side by the State park and saw so so much construction for new homes.
So if I do get a home to use as a rental, what are the licence / insurance / city requirements that I need? Do I need to tell the city that hey, this house is my own house but I am using it also for rental? I looked at the city, and seems overwhelming and confusing. I figure I can get a house, get a "caretaker / handyman", rent it out. Or is it not as simple as that?
@Michael Yeo Curious where this goes for you. I’ve looked at a few Gulf markets and haven’t found much that pencils. When it does, it’s “just barely”. The PM fees (18%-30%) and the wind/hail insurance can be just plain brutal. Not to mention you get to be on the hook for 100% of utilities, internet, cable, etc. Build your pro-forma carefully :)
STR - short term rental, SFH - single family home, LTR - long term rental
The part of town you look in will depend on your price range and plans for the property. I typically stay est end but do evaluate properties out until Jamaica beach.
With any property that has a mortgage, you will be required to have flood, windstorm, and liability insurance. These rates are difficult to estimate so it is worth asking the owner or listing agent for the dec pages of their insurance. If it is used as a vacation rental you will have to register the property with the city and pay your required HOT taxes.
It can be as simple or as complicated as you make it. Outline what you’re exactly looking for and I’d be happy to give input.
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