Deciding on TX market to invest in for first STR property

Member since 2022 · 2 posts · 3 votes

I am setting up here to purchase my first investment property in Texas! My wife and I have built up a nice bit our first property and are trying to decide what market we want to invest in. We have been looking at San Antonio, Waco, New Braunfels, and Mckinney. Any advice or thoughts on these location for looking for a STR property? Thanks!

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Lucia Rushton

Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes

@Austin Gross with the ever changing city requirements, i would always suggest you have a back-up strategy.

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Lucia Rushton
Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
3y
@Austin Gross with the ever changing city requirements, i would always suggest you have a back-up strategy.
3 Reply
Kenneth McKeown
Real Estate Agent · Dallas, TX · Member since 2016 · 432 posts · 341 votes
3y
McKinney will be the most expensive of the bunch here. Lol. They're all kinda all over Texas.
0 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Why specifically are you targeting STR? It is a job running an airbnb, not an investment. The only ones making money are the ones who go above and beyond to make the property a destination.
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Hamp Lee IIIPro Member
Real Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes
3y
There are three "STR locations" in San Antonio:

Around the three military bases (one has the largest military medical facility in the Department of Defense)

Downtown - which is also close to the military medical facility

One of the military bases is the basic training for the Air Force, so there’s a weekly rotation of visitors.

Let me know if you want to research this market further.
I wish you all the best.
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Tatum Littleton
Real Estate Agent · Austin, TX · Member since 2022 · 121 posts · 67 votes
3y
Hey Austin, good on you for starting your REI journey!
Depending on the amount you can invest into the property to make your STR "pop" I believe those are all strong markets. Deciding how you want to manage it (on your own or with a prop. management company) should be a large factor, obviously staying in San Antonio would be easiest if you manage it yourself, what does your and your wife's lifestyle allow? Of course, it is not a one-size-fits-all, it's about figuring out what aligns most with your goals. What are your financial goals for this property? Having someone else manage it will obviously cut into your profit but that's for you to decide its importance.
Of those four markets, my tops would be San Antonio and New Braunfels. Currently, I believe those have the most potential for a quick return on your investment.
I hope this helps and good luck!
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Account Closed
Rental Property Investor · New Braunfels, TX · Member since 2022 · 409 posts · 408 votes
3y
@Austin Gross
Check out this map https://newbraunfels.maps.arcg... before you buy in New Braunfels. There are a lot of str restrictions here.
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Account Closed
Real Estate Agent · San Antonio, TX · Member since 2016 · 67 posts · 58 votes
3y
Great advice by @Lucia Rushton

San Antonio will allow for that STR permit (for now) as long as it falls under the % of permits for that blockface. Highly recommend checking out the city's one stop map to access key information about locations you're looking into: https://gis.sanantonio.gov/DSD...

Best of luck @Austin Gross
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Devin Dang
Real Estate Consultant · Austin, TX · Member since 2020 · 95 posts · 88 votes
3y
Hey @Austin Gross! Wasn't exactly one of your areas but nearby, Im a big fan of the hill country for STR properties. Two key variables to successful airbnbs are: (1) Rules/regulations, does the city even allow it? (2) Unique product that can differentiate yourself from a saturated airbnb market, long gone are the days that your basic 3/2 single family home does well if buying today
New Braunfels has very strict airbnb regulations so while not impossible, will be difficult. Other cities Im not familiar with when to comes to STR but happy to chat Austin area/hill country (canyon lake, dripping springs, fredricksburg, ect)
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Jeremy Rosen
Property Manager · San Antonio, TX · Member since 2021 · 54 posts · 29 votes
3y
Hin@Austin Gross! San Antonio has already gone through the regulation process, so there's less of a risk of anything changing and losing your permit. I'd recommend San Antonio for the right type of property. If you can do a bigger 4+ bedroom home and have the budget to do a fantastic job decorating, you'll do quite well. Let me know if I can help analyze any deals or areas in San Antonio for you. I'm a local STR manager/cohost and would love to help you make San Antonio your city!

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Melanie ThomasBusiness Member
Real Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 491 votes
3y
In the SA/Austin markets here and passionate about the up and coming areas! In SA we have:

Southtown/Lavaca- Located just south of downtown San Antonio, Southtown and Lavaca are trendy neighborhoods experiencing revitalization. They offer a mix of historic homes, new developments, art galleries, restaurants, and a vibrant arts scene.

Government Hill- Situated near downtown, Government Hill is undergoing a transformation with new residential and commercial projects. The area's proximity to major employment centers and attractions, such as Fort Sam Houston and The Pearl, make it an attractive investment opportunity.

Dignowity Hill- MY FAVORITE! historic neighborhood east of downtown has been experiencing revitalization in recent years. It offers charming historic homes,
proximity to downtown amenities, and a community-focused atmosphere.

Five Points- Located north of downtown, Five Points has seen increasing interest from investors and developers. It offers a mix of residential and commercial properties and has potential for growth and redevelopment.

Brooks City Base- Former Air Force base on the southeast side of San Antonio has been transformed into a mixed-use development. It
includes residential, retail, and commercial spaces, as well as educational institutions and medical facilities, making it an appealing investment area.

Happy to chat offline if you have any questions about homes or property management in SA. Good luck & happy investing!

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