First STR in Bryan/College Station TX - Tips?

Question

Hello or HOWDY as the case may be here in Bryan College Station. I'm very new at investing. I was considering getting a 4 bedroom home for traditional 12 month housing. But the more I research, it seems that STR might be a better way to go. Bryan in particular seems like a better market for it. Does anyone else have experience in Bryan or College Station? What would you suggest to start out with? Any tips? Thanks in advance.

Grant

Gregory Schwartz · Answer

Hey Grant,

STR are a strong move to increase cash flow. Naturally, the logistics of hosting guest is more involved as compared to the more passive long-term rentals. I believe strongly that STR can be a great tool in the a buy and hold investors' tool box.

CS - it can be difficult to operate in CS. They have local laws that prevent you from Airbnb'ing single-family homes unless they are your primary residence. And yes they do enforce these laws.

Bryan - Bryan has little to no regulations so really the only thing to watch out for are HOA rules and possible dead restrictions.

Some things to keep in mind with STR.

- furnishing costs add up quickly. I guestimate 7-9k for my 2-bedroom apartment and 10-12k for a 3 bedroom / 2 bath

- Hospitality taxes are likely your second biggest expense behind cleaning. In both CS and Bryan you'll owe 15% of your gross revenue to Uncle Sam.

My last tip: For quick analysis of potential income, I like to use Rabbu.com

Good luck!

Eliott Elias · Answer

Just make sure you're not overpaying for a property because the potential STR numbers work. If the LTR numbers work as well then move forward. I would get on airbnb and see who your competition is and see how you can be better

Gregory Schwartz · Answer

Hey @Ian Fortney I have made the mistake more than once not being aggressive enough for ring weekends, graduation weekends or home games. From my experience Pricelabs rent is about 20-30% under what the market demands on those weekends.

Gregory Schwartz · Answer

Deed restrictions are rarely enforced but they are 100% enforceable. Just depends on how nosey the neighbors are. In my case, my neighborhood's deed restriction committee dropped the hammer on my little operation. :(

From my experience, HOAs that mention restricting STR will enforce that rule, and yes they have all the authority to do so. Believe it or not, HOAs can actually foreclose on houses in the neighborhood.

David Schmiediche · Answer

Airbnb in College Station and Bryan does really well. It takes more time and isn't as passive although if this is your first investment I would say look into doing Airbnb to help out financially while getting started and like @Eliott Elias mentioned if it ends up not working for STR you can then switch it to LTR.

Ian Fortney · Answer

@Gregory Schwartz as an Aggie and STH, I would really watch out when pricing your Airbnb in BCS. Myself along with a bunch of my friends will book airbnbs the second the college football schedule drops. Even pricelabs can’t beat changing a price that fast. I would just ensure you don’t allow booking that far in advance and/or have a season where those weekends are already super high.

I haven’t fully vetted airbnbs in college station, but I know you can do pretty well if you maximized game days and graduations. Keep in mind thanksgiving 2024 is going to rake in a ton of money with the rivalry game returning

Gregory Schwartz · Answer

Fun update, College Station lifted the airbnb restriction on single family homes.

Grant Bynum · Answer

@Gregory Schwartz wow, very good to know. thank you Gregory! What type of property would you most recommend in this current market in Bryan for a starting investor like me? SFH? or something different?

Grant Bynum · Answer

@Eliott EliasMakes sense, thank you. The market right now in BCS is higher than it should be. This seems to be in a high bubble.

Grant Bynum · Answer

Thank you, this is excellent info. Where would you recommend that is more passive for a first investment?

First STR in Bryan/College Station TX - Tips?

First STR in Bryan/College Station TX - Tips?

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