STR Lake Conroe, TX Good cash flow ?

[Art Webb]

Hello all. Looking for some advice from several investors or agents on STR demand at Lake Conroe, TX. Currently looking at a 3 BR/2BA waterfront condo listed at $300K. HOA $409. 1780 sf. No boat docks included. Recent May 22 comp for 3BR same building was $280K. I would be buying as part of a 1031 exchange and probably investing $100k to $150k as DP. Same building has a 2BR/2BA for $230K HOA $315. 1188 sf.

What's your thoughts on pricing and potential rental income for the above ? I'm leaving an OBX North Carolina area where we only due 7 night rentals from May thru Sept each year and stay 100% occupied one block from beach. I'm worried that Lake Conroe may only be 2-3 night weekend rentals and rental income may fall short of PITI. Thanks for your comments !

[Melissa Garcia]

You’re correct that Lake Conroe is more 2-3 night weekend stays, as well as seasonal. Thats not to say you cant be highly profitable. Dont cheap out when it comes to updates, decor/furniture & pictures. But of course make sure to do your research and see what other places that are realistic in comparison to yours are booking for. Out of curiosity, what neighborhood is it in? Make sure the HOAs allow it as well. Walden has some sections that do and some that don’t so that can be tricky. Make sure you’re working with a good realtor who knows what they are doing. If you need a recommendation I’d be happy to refer you to mine.