Houston Long Term and Short Term Rental Market

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Jimmy Woodard
Walnut Creek, CA · Member since 2020 · 285 posts · 318 votes
4y

@Tammy Nazari if you're looking to research the STR market in Houston, check out sites like Rabbu and Airdna. A good rule of thumb is that if you can find purchase:revenue ratio less than 7:1, it has potential to be a good STR investment depending on some other factors. Good luck and DM me if you have any questions!

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  • Dylan Eldred
    Real Estate Agent · Syracuse, NY · Member since 2020 · 137 posts · 107 votes
    4y

    For short term rental you can use websites like Mashvisor, or look at what other properties are going for on airbnb/ vrbo. For long term I'd recommend talking to other investors to see which areas they've been having success. I'm a realtor and have a STR in Houston.

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  • Tammy Nazari
    OP
    Member since 2022 · 2 posts · 0 votes
    4y

    thank you Dylan ... are you available for a chat around this topic

    0Reply
  • Jimmy Woodard
    Walnut Creek, CA · Member since 2020 · 285 posts · 318 votes
    4y

    @Tammy Nazari if you're looking to research the STR market in Houston, check out sites like Rabbu and Airdna. A good rule of thumb is that if you can find purchase:revenue ratio less than 7:1, it has potential to be a good STR investment depending on some other factors. Good luck and DM me if you have any questions!

    2Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    4y

    @Tammy Nazari@Tammy Nazari, There will be virtual meet-up on January 28th. It will be a way for you to connect with others in the Houston market.

    Message me for more information.

    [email protected]832-776-9582Podcast Guest on Show #469
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  • Zack Berridge
    Houston · Member since 2018 · 55 posts · 24 votes
    4y

    @Jimmy Woodard would you mind explaining the 7:1 ratio rule of thumb?

    0Reply
  • Jimmy Woodard
    Walnut Creek, CA · Member since 2020 · 285 posts · 318 votes
    4y

    Sure thing @Zack Berridge. Before I do a deep dive pro forma on a property, I developed a quick way to see if the numbers work out. If the purchase price is less than 7x the revenue, I know this has the chance to be a good deal.

    For example, let's say purchase is $500k. I need to see potential revenue above $71k (500/7). There are many ways to do this, from Rabbu to Airdna to good ol fashioned Airbnb research.

    If I see the "golden ratio" in effect, then I plug numbers into my pro forma spreadsheet to make sure it all looks good on paper. Once I validate the numbers, I'm ready to make an offer. Hope this helps!

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  • Zack Berridge
    Houston · Member since 2018 · 55 posts · 24 votes
    4y
    Quote from @Jimmy Woodard:

    Sure thing @Zack Berridge. Before I do a deep dive pro forma on a property, I developed a quick way to see if the numbers work out. If the purchase price is less than 7x the revenue, I know this has the chance to be a good deal.

    For example, let's say purchase is $500k. I need to see potential revenue above $71k (500/7). There are many ways to do this, from Rabbu to Airdna to good ol fashioned Airbnb research.

    If I see the "golden ratio" in effect, then I plug numbers into my pro forma spreadsheet to make sure it all looks good on paper. Once I validate the numbers, I'm ready to make an offer. Hope this helps!

    I appreciate the explanation, Jimmy. Thank you!

    1Reply
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