S. Padre Island for STR?

Question

I have a few LTRs but am curious about STRs. Does anyone have experience or info on STRs on S Padre Island? I'm curious as to how ROI compares to LTRs. I used to live in Brownsville (and still own a LTR there) but no longer live in that area. Thanks.

Esteban Flores · Answer

My vacation rentals in SPI are making great ROI and best of all I get to enjoy them when they are not rented. If anyone needs any tips on the area feel free to send me a private message.

Esteban Flores · Answer

I own a duplex. (1200sf/2bed/2bath per unit).

Vacation rentals on the Island are  very seasonal, so you need to adjust your pricing according to season (supply/demand). Summer rates go for about $200/night. Spring break I was able to do $500/night most of march. Off season rates (December) I went as low as $50/night.

They stay rented well over 200 nights out of the year. In my experience you just kind of break even during the off season (oct-feb) and your profit comes during the high peak seasons (march-sept).

I hope this answers your questions.

Eric James · Answer

It didn't look worthwhile to me.  As I recall, condos were renting around $150/night during the peak season.  Especially given that SPI has a lot of down time (summer) when I could probably expect quite a bit of vacancy it didn't seem like a better proposition than long term rentals I'm doing.  I like the area, and will probably go down for a couple weeks this summer with my family (and stay in a camper trailer at Isla Blanca Park), but I don't think I'll be buying a STR there.

CP Chou · Answer

@Eric James I would triangulate your STR performance with your eyeballing on the main platforms like you've done, get a few reports from airdna for (near) actuals on gross rents, ADR and occupancy.

For more occupancy data, you can call up some vacation rental companies and see what they say is "average" occupancy over the year and probably round down to be conservative. For contrast, Galveston is ~40-50% "average" occupancy.

Chase Cline · Answer

We are now selling both of our 1/1 condos on North Padre Island if you're interested.  One generated $28k revenue in 2018 and the other has only been listed since March and did $14k between March-Aug.  Good cash flow and I am willing to let the new owners literally copy/paste my Airbnb listing and use my pictures.

We are selling to consolidate into a single larger property.

Chase Cline · Answer

32k is very realistic for a 2/2. I own a 1/1 beach condo and did 24k last year which included giving my condo away for 3 months to a Hurricane Harvey victim from Sept - Nov. On track to do 28k this year. We just closed on a 2/2 and expect to do closer to 40k/year  with it.

Eric James · Answer

What are you renting (condo, beach house, etc), what rent do you get,  and how many days did you rent it over the last couple years? I'd love to buy there if I could make it work. Thanks.

Myka Artis · Answer

I had a friend, @Steven C. Suarez, trying to buy a condo out there for those purposes exactly but he was getting the run around. I personally stay away from "vacation" type areas such as Padre because you are going to have a down season and I'm not sure Padre has the economy to fit a corporate renter in there during your down season but you can always do a test run on the market.

Olivia Leija · Answer

I am considering purchasing a property in South Padre Island and self-managing as a short term rental.  Any input would be appreciated.

S. Padre Island for STR?

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