Northwest Arkansas · Member since 2019 · 43 posts · 23 votes
I've been looking for a location in the Northern Texas and Oklahoma area not too far off route 66 we can purchase an affordable home to use as a second home and a STR while we are not there. So far my research has landed me on Wichita Falls, TX. The area has a surprisingly high occupancy rate per AirDNA and that appears to be fairly accurate after confirming directly on AirBnB. Since this is a new location for me I am trying to understand what the primary driver is for that. The college, air force base, location, something else? I haven't been able to pinpoint through reading reviews and other searching if it is something specific. If it is indeed the college or air force base I'd assume buying closer to those makes more sense. Anyone have experience with this area OR have a good tip to find out this type of information when investing out of state?
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
7y
@Brady Beshear I have 23 STRs, about as many LTRs that you have. My wife does the turns. Probably 10/month. We make more money renting out houses than she could bring in as the office manager of a law firm.
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
7y
@Brandi Scharrer you'd be an early adopter as far as the STR forum is concerned. Our resident posters are from Coffeeville, KS/ East TN/ Big Bear, CA/ Orlando, FL and wherever @John Underwood has his lake house.
Just study the competition on Airbnb and first and foremost make sure it’s legal! If you can find a way to make cash we will all want to know how you did it :)
It looks like the AFB is by far the largest employer. Add up the next 4 employers and you still don't have as many as the AFB.
It's the same way in my town of 9500. The refinery employs about 800 full time local employees. The next closest is John Deere with about 300. The refinery also employs contractors, which are not included in the 800 local employees. Those contractors are here for a few weeks to as long as 6 months. When the job is over, they go back home or look for another job.
Try to market your STR towards AFB contractors. There might be a FB page for it.
Here's an ad from Wichita Falls CL:
Fully furnished 2 bedroom, all utilities pd. Perfect for traveling nurses, short term rental. Equited with everything from kitchenware, to bathroom towels and sheets, cable and WiFi. One bedroom with queen size bed, #2 bedroom two twins, sofa bed in living room. Good location, close to hospitals, Sheppard Air Force base, shopping and Midwestern State, off st. Parking. $ 400.00 per wk. or 1200.00 per month. Call Mary show contact info .
It seems like the hospitals and AFB are who the ad is targeting.
Real Estate Broker · Columbus, OH · Member since 2016 · 181 posts · 244 votes
7y
Route 66 (and interstate 40 are main routs for travelers. Likely people stopping to sleep while traveling long distances may be a factor in high occupancy. Did you know there are over 7,500 hotel room in Amarillo Texas?
Rental Property Investor · Valley View, TX · Member since 2018 · 174 posts · 87 votes
7y
@Brandi Sharrer We own 4 SFHs in Wichita Falls, and I can guarantee you that it's the base that's the factor in the occupancy rate. Shepard is a training facility for both US and foreign pilots and mechanics. There is a tremendous amount of short term inflow and outflow among the personnel getting trained there. Since we rent SFHs with one-year leases, those are not our tenants, but there may be good demand for STRs there. Just depends on how much capacity the base has for those folks and how inclined those short term personnel would be to want to live off base.
While there is no primary industry in Running Springs, there are service industries geared to the tourism market, as the San Bernardino National Forest is a highly popular year-round tourist destination.
Coffeyville has a long history as a center of industry and manufacturing.[citation needed] Coffeyville Resources operates a 100,000 barrels per day refinery and a large nitrogen fertilizer plant, using a unique Texaco process of ammonia extraction from coke byproducts produced in the refinery.
@Brandi Sharrer We own 4 SFHs in Wichita Falls, and I can guarantee you that it's the base that's the factor in the occupancy rate. Shepard is a training facility for both US and foreign pilots and mechanics. There is a tremendous amount of short term inflow and outflow among the personnel getting trained there. Since we rent SFHs with one-year leases, those are not our tenants, but there may be good demand for STRs there. Just depends on how much capacity the base has for those folks and how inclined those short term personnel would be to want to live off base.
Are you still actively buying there for LTR or did you buy years ago? I know a realtor there who mentioned SFH and apartments are priced well, but haven't really looked into buying anything.
Northwest Arkansas · Member since 2019 · 43 posts · 23 votes
7y
@Benjamin Vail Agreed, Route 66 is definitely a draw! We travel it ourselves every year and actually stay in Amarillo in a STR every time. I've never fallen in love with that city though. One of my reasons for Wichita Falls is the fact it is closer-ish to the highway too.
Northwest Arkansas · Member since 2019 · 43 posts · 23 votes
7y
@Alfred Litton This is wonderful info! Appreciate you sharing! I'm going to look more into them possible being a target audience. I've looked at the crime maps and a few other things to help determine areas but if you have any insider info on the area, good or bad locations or anything else about the city I'm all ears!
Real Estate Broker · Columbus, OH · Member since 2016 · 181 posts · 244 votes
7y
@Brandi Scharrer Last time I was on the 66, I stayed in Amarillo. I saw a bilboard that said there are 7,500 Hotel rooms in Amarillo, and it seemed true (Hotels everywhere!).
So we searched Airbnb, and booked one. It sucked. Then I got on Airdna.co. and looked at Amarillo. There were only like 200 STR's in the whole town... As you know, it is the only town to stay in for about a 15 hour stretch on 66 (I/40). I said, yes, let's move the STR business to Texas. My wife pointed out that the whole town smelled like cow ****, and she was right.
So.... We recently moved to Ausitn, TX, and am loving the live music, BBQ, and STR here! I am considering Amarillo. Let us know how it goes in WF!
Northwest Arkansas · Member since 2019 · 43 posts · 23 votes
7y
@Benjamin Vail Hmm, that is a drastic difference in hotels vs STRs. One of our challenges is we also plan to stay in it about 3-4 mos out of the year, so we want to like it and have it be a good STR market. We lived in the Austin area and loved it there! We would go back but it's the distance off the highway that kills it for us. We are already driving 30 hours and that adds another 8-10. Enjoy Austin!
Rental Property Investor · Amarillo, TX · Member since 2019 · 9 posts · 0 votes
7y
@Brandi Scharrer @Benjamin Vail have y’all looked into Canyon, TX just a few miles south of Amarillo? There’s also Palo Duro Canyon State Park a few miles to east of Canyon.
Rental Property Investor · Valley View, TX · Member since 2018 · 174 posts · 87 votes
7y
@John Blackrock We're always interested in buying, particularly there. The 4 we purchased were purchased over the past 2 years, the most recent in April. If we saw another good deal there, we'd continue buying, but we're also looking to diversify into other mid-sized Texas cities like Tyler, Abilene, etc. We find that the value is better in those cities, and if they are large enough to have at least a couple of good PMs in town along with good trades people, we prefer those towns.
Rental Property Investor · Wichita Falls, TX · Member since 2017 · 51 posts · 11 votes
7y
@Brandi Scharrer I live in Wichita Falls and would be glad to help. I own 16 LTRs in this area - all are SFHs. I have yet to do a STR, but have considered branching out into the hospitality world!
Rental Property Investor · Wichita Falls, TX · Member since 2017 · 51 posts · 11 votes
7y
@Paul Sandhu - yes, the increased workload gives me pause. Using airdna.co, it seems like I could net about 1K per mo. per house, but that's with ten or so turns per month.
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
7y
@Brady Beshear I have 23 STRs, about as many LTRs that you have. My wife does the turns. Probably 10/month. We make more money renting out houses than she could bring in as the office manager of a law firm.
@Brandi Scharrer I live in Wichita Falls and would be glad to help. I own 16 LTRs in this area - all are SFHs. I have yet to do a STR, but have considered branching out into the hospitality world!
Rental Property Investor · Valley View, TX · Member since 2018 · 174 posts · 87 votes
6y
@Brandi Sharrer. In terms of areas, I stay mostly in the 76310 zip code. Low crime, best schools, usually easier to rent to higher quality tenants. That's on the south and southwest side of WF. I steer clear of anything downtown or east of I-44 unless it's up by Shepard AFB, and even then, I prefer to stay north of Missle Rd. You get a lot of homes directly east and south of the base that have been pretty beaten up, so the maintenance on them is a headache. Also, I'm no fan of the City View area due to floodzones (high insurance premiums). In WF, "West is Best."
@Brandi Sharrer. In terms of areas, I stay mostly in the 76310 zip code. Low crime, best schools, usually easier to rent to higher quality tenants. That's on the south and southwest side of WF. I steer clear of anything downtown or east of I-44 unless it's up by Shepard AFB, and even then, I prefer to stay north of Missle Rd. You get a lot of homes directly east and south of the base that have been pretty beaten up, so the maintenance on them is a headache. Also, I'm no fan of the City View area due to floodzones (high insurance premiums). In WF, "West is Best."
@alfredlitton More great location feedback, thank you! I've been looking south and southwest so it is nice to hear others recommend those areas too. Still haven't pulled the trigger yet but hoping to soon.
Rental Property Investor · Valley View, TX · Member since 2018 · 174 posts · 87 votes
6y
@Brandi Scharrer One thing to think about. A couple of years ago, students in the school district could choose to go to any school they wanted. Now, they are zoned to particular schools, and Rider HS is the more desirable school. We try to stay over near that high school. We get better rents there, but then again, we almost always exceed the 1% rule in WF. Bought one on Lindale for $95K that currently rents for $1200, one on Cypress for $93K that rents for $1050, and one on Cascades for $86K that rents for $950. Our other on Gloria was acquired for $84 and rents for $975. Two other things. First, our PM is Sandra Wortham, and we like her much better than some others in WF. We've had good results overall with her group. So you can find at least one good PM in WF. But contractors and handymen? Well, the good ones are harder to come by. Make sure your PM has a good list of them to call on. I've not had great luck looking on my own.
Also, I was tempted to invest in Iowa Park or Burkburnett, but don't bother. The prices are inflated and property taxes are higher. I also think they don't rent as quickly as homes in WF proper. Be careful with some of the housing near the base. It's in the Burkburnett school district, and the taxes are high and the schools are farther for people to get to. Good luck!
Northwest Arkansas · Member since 2019 · 43 posts · 23 votes
6y
@Alfred Litton more great info! Did you do any renovations on those homes? My plan with this property and location would be for us to live in it 3-4 mos out of the year, most likely the winter months. Then we would STR it the remainder of the time. My alternative plan would be to LTR it.