Houston Long Term and Short Term Rental Market
Hello ... I am looking for some information on Houston short and long term rental market. What are the main resources used by investors around Houston.
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.
thank you Dylan ... are you available for a chat around this topic
@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!
@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.
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@Jimmy Woodard would you mind explaining the 7:1 ratio rule of thumb?
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!
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!