Newbie Looking For STR in Galveston TX

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Newbie Looking For STR in Galveston TX

Murray Reginald
Investor · Member since 2018 · 75 posts · 15 votes

Hello BP,

My STR strategy:

I just started renting my existing residence and in the process of purchasing a primary property in Galveston Tx (Beach House), I plan to AIRBnB 1 to 2 rooms depending if the property is 2-3 Beds. After my first year I plan to repeat the same process, this property will now be a full time VRBO/STR. I plan on doing this every year for the next 10 yrs. in hopes of having built a wealth of investments with RE. This is will now be my second investment property, and I am looking for some strategies/advice now that I am diving into STR's, I just purchased a book on "How To Start A Successful AIRBNB Business" by Walter Grant & Richard Anderson and listening to a lot podcast as well any other tips?

Questions:

1) Where is the best place to get the most accurate data for STR's? AIRDNA? Should I purchase the AIRDNA City Plan which is $59?

2) What expenses should I calculate for analyzing a STR property? And how much?

Electricity  

Water 

Gas 

Garbage 

Cable 

Security 

PM 

Furniture

3) What is a good Cash Flow, ROI for STRs?

4)   Can AIRDNA or any other system provide the following below information:

  • - Data that is tracked for over 250 days in a calendar year
  • - Reviews every month to ensure they've been hosting for at least an entire year
  • 1. Annual revenue
  • 2. Days available
  • 3. Avg daily rate
  • 4. # of guests the property holds
  • 5. # of bedrooms and bathrooms
  • 6. # of beds
  • 7. Is the property self-managed or run by a PM
  • 8. List of amenities
0Reply
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Most Popular Reply

January Johnson
Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 486 votes
3y
Quote from @Murray Reginald:

Hello BP,

My STR strategy:

I just started renting my existing residence and in the process of purchasing a primary property in Galveston Tx (Beach House), I plan to AIRBnB 1 to 2 rooms depending if the property is 2-3 Beds. After my first year I plan to repeat the same process, this property will now be a full time VRBO/STR. I plan on doing this every year for the next 10 yrs. in hopes of having built a wealth of investments with RE. This is will now be my second investment property, and I am looking for some strategies/advice now that I am diving into STR's, I just purchased a book on "How To Start A Successful AIRBNB Business" by Walter Grant & Richard Anderson and listening to a lot podcast as well any other tips?

Questions:

1) Where is the best place to get the most accurate data for STR's? AIRDNA? Should I purchase the AIRDNA City Plan which is $59?

2) What expenses should I calculate for analyzing a STR property? And how much?

Electricity  

Water 

Gas 

Garbage 

Cable 

Security 

PM 

Furniture

3) What is a good Cash Flow, ROI for STRs?

4)   Can AIRDNA or any other system provide the following below information:

  • - Data that is tracked for over 250 days in a calendar year
  • - Reviews every month to ensure they've been hosting for at least an entire year
  • 1. Annual revenue
  • 2. Days available
  • 3. Avg daily rate
  • 4. # of guests the property holds
  • 5. # of bedrooms and bathrooms
  • 6. # of beds
  • 7. Is the property self-managed or run by a PM
  • 8. List of amenities

If your realtor is worth his/her salt, they will ask the seller on your behalf for a cost to own document that will list all of the current expenses and averages for the month.

If you're not already working with a realtor who is experienced with STRs, check out our agents there in Galveston.  We have several rockstars.

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  • Karl McGarvey
    Real Estate Agent · Houston, TX · Member since 2019 · 763 posts · 500 votes
    3y

    Hey Murray,

    Lovd the House Hack method! I actually have a client fixing up a house hack that will become an STR in Galveston right now.

    I will caution you that renting out just rooms for STR and not whole home on the island is going to limit your visibility and client base. VRBO only accepts whole home listings which is where got the majority of our bookings last year (not the case for everyone). Most families vacationing on the island also want private residence, especially when kids are involved. Even though you'll be moving out after a year, the reason this matters is your first year of reviews will be based on your shared model.

    For your AirDna questions, I much prefer PriceLabs. Way more bang for your buck at only $10/ mo for market and property info.

    If there is anything else I can do to help with your search let me know! I work with a lot of investors on the island and have personal LTR/STR investment in Galveston!

    0Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Hey @Murray Reginald. Start reading the forum front to back. There is a ton of info here that covers all these questions. 

    0Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    3y

    I would definitely recommend AirDNA for the questions on #4 - they have all the info you need on the Galveston market and we have found the info to be highly accurate

    [email protected]
    Harpoon Capital514 Reviews
    WebsiteView Page
    0Reply
  • Murray Reginald
    OP
    Investor · Member since 2018 · 75 posts · 15 votes
    3y
    Quote from @Karl McGarvey:

    Hey Murray,

    Lovd the House Hack method! I actually have a client fixing up a house hack that will become an STR in Galveston right now.

    I will caution you that renting out just rooms for STR and not whole home on the island is going to limit your visibility and client base. VRBO only accepts whole home listings which is where got the majority of our bookings last year (not the case for everyone). Most families vacationing on the island also want private residence, especially when kids are involved. Even though you'll be moving out after a year, the reason this matters is your first year of reviews will be based on your shared model.

    For your AirDna questions, I much prefer PriceLabs. Way more bang for your buck at only $10/ mo for market and property info.

    If there is anything else I can do to help with your search let me know! I work with a lot of investors on the island and have personal LTR/STR investment in Galveston!

    Hi Karl, Thanks for the information I am very excited about the house hack, I do have a few questions for you:

    1) Where is the best place to purchase STR furniture?
    2) Did you hire an interior designer to setup your STR?
    3) Do you think I should manage the property myself? 
    4) Do you use a PM if so what is the cost?
    5) I see the Hotel Occupancy Tax (HOT) is 9 % is this fee paid by the guest fees? 





      
    0Reply
  • Karl McGarvey
    Real Estate Agent · Houston, TX · Member since 2019 · 763 posts · 500 votes
    3y
    Quote from @Murray Reginald:
    Quote from @Karl McGarvey:

    Hey Murray,

    Lovd the House Hack method! I actually have a client fixing up a house hack that will become an STR in Galveston right now.

    I will caution you that renting out just rooms for STR and not whole home on the island is going to limit your visibility and client base. VRBO only accepts whole home listings which is where got the majority of our bookings last year (not the case for everyone). Most families vacationing on the island also want private residence, especially when kids are involved. Even though you'll be moving out after a year, the reason this matters is your first year of reviews will be based on your shared model.

    For your AirDna questions, I much prefer PriceLabs. Way more bang for your buck at only $10/ mo for market and property info.

    If there is anything else I can do to help with your search let me know! I work with a lot of investors on the island and have personal LTR/STR investment in Galveston!

    Hi Karl, Thanks for the information I am very excited about the house hack, I do have a few questions for you:

    1) Where is the best place to purchase STR furniture?
    2) Did you hire an interior designer to setup your STR?
    3) Do you think I should manage the property myself? 
    4) Do you use a PM if so what is the cost?
    5) I see the Hotel Occupancy Tax (HOT) is 9 % is this fee paid by the guest fees? 





      
    Shooting you a message!
    0Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    3y

    Think the answer is unfortunately no to your last question but Air DNA should add these features. I don't know if there is a data source that offers the ability to look at STR comps with all of those specific filters.

    0Reply
  • January Johnson
    Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 486 votes
    3y
    Quote from @Murray Reginald:

    Hello BP,

    My STR strategy:

    I just started renting my existing residence and in the process of purchasing a primary property in Galveston Tx (Beach House), I plan to AIRBnB 1 to 2 rooms depending if the property is 2-3 Beds. After my first year I plan to repeat the same process, this property will now be a full time VRBO/STR. I plan on doing this every year for the next 10 yrs. in hopes of having built a wealth of investments with RE. This is will now be my second investment property, and I am looking for some strategies/advice now that I am diving into STR's, I just purchased a book on "How To Start A Successful AIRBNB Business" by Walter Grant & Richard Anderson and listening to a lot podcast as well any other tips?

    Questions:

    1) Where is the best place to get the most accurate data for STR's? AIRDNA? Should I purchase the AIRDNA City Plan which is $59?

    2) What expenses should I calculate for analyzing a STR property? And how much?

    Electricity  

    Water 

    Gas 

    Garbage 

    Cable 

    Security 

    PM 

    Furniture

    3) What is a good Cash Flow, ROI for STRs?

    4)   Can AIRDNA or any other system provide the following below information:

    • - Data that is tracked for over 250 days in a calendar year
    • - Reviews every month to ensure they've been hosting for at least an entire year
    • 1. Annual revenue
    • 2. Days available
    • 3. Avg daily rate
    • 4. # of guests the property holds
    • 5. # of bedrooms and bathrooms
    • 6. # of beds
    • 7. Is the property self-managed or run by a PM
    • 8. List of amenities

    If your realtor is worth his/her salt, they will ask the seller on your behalf for a cost to own document that will list all of the current expenses and averages for the month.

    If you're not already working with a realtor who is experienced with STRs, check out our agents there in Galveston.  We have several rockstars.

    1Reply
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