Galveston 3 Bedroom Rental Properties - Do they give you income?

Question

Mike Reynolds · Answer

I think the key is finding the right property. They pretty much all stay booked year 'round there if they are in the right location. Galveston always has stuff going on year round for rentals and the city is very  STR friendly. @Timothy Church knows the area very well and I know a little  since I have been going there and renting STR for 40 years myself. I know what areas I like and stay rented because I have to call months in advance to get it. I have been looking for rentals in the area also. That and Crystal Beach too.

Thomas Weidner · Answer

@Dennis Solari have you looked at that market? I have looked into Galveston myself and just on Airb&b there are over 2000 properties. Might be to saturated to make anything after expenses.

Timothy Church · Answer

It really depends on the property and the location. I have a handful of vacation rentals on the island and also manage some for some other investors. At that price point, hopefully yours is either a west end property or in the historic district. They can definitely provide a decent income if run properly. If you'd be interested on the AirDNA data for it, I have a subscription covering Galveston and would be happy to share it with you. Just PM me!

Paul Sandhu · Answer

I'd buy something that costs less, even if it's a 2 BR.  Make it an STR for refinery contractors and charge the prevailing weekly rate of local motels.

It's what I do in Coffeyville Kansas with 23 STRs.  The main things they need are a place to go after work to drink beer, a washer/dryer to do laundry, a kitchen to make dinner, and a bed to sleep in.

Notice I made no mention of a dining room to eat in.  Convert any dining room to a bedroom, and you can charge more.

Timothy Church · Answer

@Thomas Weidner The competition has definitely risen quite a bit! However, there are about 7 million tourists to Galveston every year. We actually have beaten the Grand Canyon for the last 6 years! Another thing that shows our growth is there are current 3 new hotels being built. That being said my numbers were abour 5% down in 2018 as compared to 2017. It is definitely getting tighter and you are having to run them properly to out perform the market. I'm just excited for those people who don't do that. I'm ready to pick up some turnkey vacation rentals on the island as people stop doing it!!

@Dennis Solari I typically recommend to my investor to self manage. Once you have things running, they are decently self sufficient. Your primary job is being able to respond to occasional messages. As long as you make a point to take all relevant questions and add them to your listing/check in packet, those occurances will diminish. You do by city law have to have someone within an hour of the property as a "contact person". This could even be a local handyman or someone you have an agreement with down here. 9/10 issues can be resolved without you visiting the property. Actually had one leg of a electrical panel go out tonight on a property I manage for another investor. Called the guest and explained what was going to happen, called centerpoint to send out the guy to fix it, and called the owner to aprise them of the situation. Centerpoint texted me when it was fixed, I texted them, and everything was done!! All while taking my family downtown for ice cream at Galveston's ArtWalk!! It is minor inconviences here and there but it isn't too hard.

Michael Roe · Answer

I have had a 3/2 property on 37th Street about a block from the beach. It seems to be doing pretty well but too early to say as we just bought the property in February and started Airbnb and VRBO in March. Pretty well booked through July. As Tim said location is everything in Galveston. My purchase price was 260k for 1920’s style bungalo.

Dennis Solari · Answer

@John Underwood thanks...  I already have that except for the PM expense, just want to know from another investor in Galveston to see if something is left at the end of the year or you have to put extra money. Thanks John... I appreciate your input.

John Underwood · Answer

@Dennis Solari You are going to have to run the numbers on any property you might be interested in.

Then you need to look Vrbo and Airbnb and see what properties are renting for and how often.

Put all this in a spreadsheet and add in utilities, furnishing, consumables, cleaning, PM (unless doing this yourself), yard maintenance, house maintenance, tax and insurance and see how the numbers shake out.

Dennis Solari · Answer

I am thinking to invest about $340K with a mortgage. I want to know if after paying mortgage, escrow, insurance, electricity and Internet do I have something left?

Galveston 3 Bedroom Rental Properties - Do they give you income?

Most Popular Reply