Best advice for your first vacation rental?

[Sarah Hartwell]

Hey BP! We've got 3 Buy & Hold investments in Houston, TX (though I'm definitely still a rookie). My husband and I LOVE the water, so we're strongly considering making our next investment a waterfront vacation rental, so that we can enjoy it when it isn't rented out. We figure that, as long as we make enough to cover P&I, maintenance, and taxes, we're happy. (Obviously cash flowing it entirely would be even better, but at a minimum we'd be willing to go with that.)

I don't know enough about what to look for / avoid, how to run numbers properly, etc. I am running basic numbers in airDNA (the free version), but otherwise I'm kind of clueless.

Thoughts on how to do this properly? Anyone in/around Houston and familiar with local waterfront rentals (Conroe, Livingston, Surfside, San Bernard, etc.)?

Thanks in advance!

[Paul Sandhu]

The first question you have to ask when you've found a suitable property: Is doing an STR legal in the community or HOA? If it is, how likely is it going to be legal for the next 10 years?