STR in Galveston -is now a good time?

Question

Hi Guys, I’ve been soaking up all things STR. I really like the higher cash on cash returns. I have great credit and cash to invest into a downpayment. Is galveston still profitable or should I consider other markets?medical center? If anyone can provide me resources(cleaners/handyman/design) or I can get advice from boots on the ground on current market conditions that would be very helpful. I am a professional so I can’t do all of the work myself and would use the automation tools(hospitable/IGMS/turnoverairbnb) to manage along with maid service/handyman.

Sean Bramble · Answer

Hmm ... hard to say bc it's obviously deal dependent, but if you're focused solely on Texas beach markets and prioritizing cash-on-cash returns check out Aransas (near Corpus Christi), Surfside, Gilchrist and Bolivar (all near Galveston), and Port Isabel (near South Padre). That said, if you're willing to venture a bit outside of Texas you should check out Gulfport/ Biloxi, MS which is one of the best beach markets in the US for cashflow today. I also think there is a lot upside in these markets for design-centric listings - these are mom and pop beach communities desperately in need of new investors breathing life into the area. Caveat: check local regulations on all of these places by calling town halls directly. Assuming you're good regulation-wise, I'd recommend setting up searches in all of these areas, underwriting properties as they hit your inbox, and eventually pulling the trigger on whatever seems like the best deal. Good luck!

Luyen Nguyen · Answer

I agree with the cash flow in the area. Appreciation is lagging a bit behind though. I would also like to add that Biloxi will be bit tough to get into for STR (a lot of politics involved). Gulfport, D'iberville, and St. Martin not so much. Ocean Springs regulates their Airbnb to 40 active Airbnb minimum (around there) so you'll have to be on the waiting list.

I purchased a property a SFH in Gulfport recently used for LTR and cash flow about $400/mo.

Karl McGarvey · Answer

Both are good options. The thing I still LOVE about Galveston is value add opportunities in a place with year round tourism. There is also a MTR market in Galveston, but I don't think its nearly as strong as Med Center like you brought up. Each have its advantages and I think diversifying between the two would be a good long term play. Hopefully we can chat this week, I can easily share my resources and how we run our STR/MTR/LTR island business.

STR in Galveston -is now a good time?

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