Potential for Airbnb Closer to Lake Travis or Closer to City?
Explore different options for a short term rental in Austin, TX and surrounding areas and am curious what would be the more desirable/success location. An STR that is right nearby Lake Travis or one more geared towards night life in the city of Austin or just outside of it. Also open to other areas within 1-2 hrs of Austin that I may be overlooking.
THANK YOU!
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#1 Short-Term & Vacation Rental Discussions Contributor
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One that is on the lake. This will attract families instead of party people.
Quote from @John Underwood:
One that is on the lake. This will attract families instead of party people.
If you've got a spare $4M lying around! ;)
Quote from @John Underwood:
One that is on the lake. This will attract families instead of party people.
Very true. Much easier to operate when primarily occupied by families.
Quote from @Ryan Moyer:
Quote from @John Underwood:
One that is on the lake. This will attract families instead of party people.
If you've got a spare $4M lying around! ;)
At first glance Im finding some options below 500k right next to the lake that look pretty good. But "ON" the lake, yes you've got that right haha
@Eric Babcock unless you owner occupy there are regulations that will prohibit you from running an STR in most areas of Austin. @Conner Olsen and I have the formula figured out if you're interested.
@Jordan Moorhead exactly, that is what I have been running into, which is why I am looking into the Village at Point Venture since they allow for STRs and seems to be a great location. And awesome, would love your insight as well, but what exactly does your formula figure out?
Lake Travis is a very fun spot, especially for boat owners. There is also Canyon Lake, another popular lake within 1 hour of Austin and San Antonio. The night life scene is very popular in downtown Austin, and the crowds have begun moving away from 6th street and towards Rainey Street. Finding an STR that can accommodate a bachelor or bachelorette party would be a smart move if you have the money. One thing to think about is the peak seasons the lake areas go through. I'm sure you could fill the STR nearly everyday during June and July if it's at one of the lakes, but I think downtown would be more ideal for year round consistency.
@Jack Faysash yeah thats the one thing with the lake I will need to figure out in terms of what the 'off-season' looks like. Was also looking at something potentially just outside downtown so I could still appeal to the nightlife/tourists without having to pay a crazy amount for a condo.
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Dripping Springs area is another one I would consider, its pretty close to the city and is jam packed with activities/venues that are perfect for a 2-3 day weekend stay
I also recommend lake! There are great properties outside city limits so you don't have to worry about short-term rental restrictions. We are about a mile from the lake, outside city limits and rent our ADU on Airbnb/VRBO. It's been great. Feel free to message me if you'd like to chat.
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Quote from @Ryan Moyer:
Quote from @John Underwood:
One that is on the lake. This will attract families instead of party people.
If you've got a spare $4M lying around! ;)
The bank has it.
I buy water front. It makes the most money.
I just got under contract on a place in Cedar Park that's 6 minutes to Jonestown and 7 minutes to Trail's End at Lake Travis by car. I like the idea of investing in Lake Travis because it's the closest vacation rental location to Austin, but I am uncomfortable buying log cabins too close to the lake because I want a conventional LTR solution as well, so a house on the border of Cedar Park made sense to me.
@Eric Babcock we have a map of the areas that allow it ported into the MLS on my team here
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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It’s going to be tough to Airbnb closer to the city because of regulations and permitting. You can do it, but it has to be 30 nights +
Ild stick to the outskirts and Austin MSA
I live about a mile from Lake Travis. If you're looking to buy a house on the lake you need to think through two things.
1. The property taxes are really high.
2. Lake Travis is not a constant level lake like Lake Austin and Lake LBJ are. Texas has frequent droughts and when we do the lake levels drop. Sometimes it's low for years.
@Nathan W. completely agree regarding lake levels. I prefer Lake LBJ which is about 1.5 hours west of Austin, but a steady level lake which keeps water activities and views more consistent. Anywhere inside the city or in an HOA I would be particularly weary of due to regulations. Go where the tourists go and you'll have a safer bet.
Quote from @Robin Simon:
Dripping Springs area is another one I would consider, its pretty close to the city and is jam packed with activities/venues that are perfect for a 2-3 day weekend stay
thats a good idea. Ive heard of that area really starting to develop as well, just never considered it to be a hot airbnb spot so I will definitely look into that!
Quote from @Nathan W.:
I live about a mile from Lake Travis. If you're looking to buy a house on the lake you need to think through two things.
1. The property taxes are really high.
2. Lake Travis is not a constant level lake like Lake Austin and Lake LBJ are. Texas has frequent droughts and when we do the lake levels drop. Sometimes it's low for years.
I hadnt even considered the lake levels. Does that drastically affect the occupancy rate? I had just assumed that Lake Travis was the main go-to lake for all the tourist, but if Lake Austin and LBJ on comparable without the variance of lake levels then I'll definitely have to look into that!
Quote from @Ryan Kelly:
@Nathan W. completely agree regarding lake levels. I prefer Lake LBJ which is about 1.5 hours west of Austin, but a steady level lake which keeps water activities and views more consistent. Anywhere inside the city or in an HOA I would be particularly weary of due to regulations. Go where the tourists go and you'll have a safer bet.
Good to know! I'm trying to pinpoint a good area where that tourist traffic is steady, which is why I assumed Lake Travis may provide that and just outside downtown in areas that are permittable in order to get the nightlife traffic. Any other busy tourist spots in that surround austin area?
Everything comes back to numbers and regulations. You want to find an area that has an advantageous risk reward ratio. In our go-to market in PA around the Pocono Lakes, sometimes the lakefront properties have the best cash on cash returns and other times its the lakeviews or even a bit farther out.
The numbers are typically best when the house has X-factor finishes and amenities that will make you want to rent compared to competitors in the same tier (comparing lake front to lakefront etc.). The right lakeview listing can generate more revenue than even a lake front if there are enough differences.
Someone said it earlier, but Austin regulations can be tricky. Personally, I will only purchase in areas where the regulation forecast is not limiting OR if regulatory outlook is bleak, I tend to purchase commercial and resort zoned property before the regulation is in stone and prices go up.
If you ever want to chat revenue, cash on cash analysis, or anything STR, DM me
@Eric Babcock we see higher rental rates closer to downtown. Lake Travis is cool but most people come to Austin for conferences and events like SXSW, ACL, F1 and Moto GP. We also just generally have a fair amount of tourism and Bachelor/Bachelorette parties. Those people all want to be closer to downtown and lake travis is about 45 minutes away.
I'd love to help you with your numbers/estimates, if you find a place that you like in your criteria, id be happy to run some numbers for free for you, let me know!
Hope this helps! Don't hesitate to reach out if you ever need anything!
All the best,
Mike Eichler
@Eric Babcock Have you utilized airdna? There are other databased type companies too for in depth research. City of Austin is a gamble imo as the city is very regulation oriented. I would not want to be in a property that only works as a str but not ltr. The city can change and does change regulations.
Lake LBJ would be another place to consider. It is generally cheaper than Lake Travis and it is surrounded by nice golf courses, resorts such as Horshoebay, wineries, etc.