Newb to STR in Houston Market

[Ryan Anders]

Hello BiggerPockets Community!

I am reposting something I sent to the general starting-out community because it is specifically about STR. I figured I would get better responses here:

I am deeply appreciative of the wealth of knowledge and experience that this community shares. It truly is a treasure trove of information.

Anyhow, I am posting because I want to connect with people who have successfully done STR for their first investment. We live in the Houston market, so if anyone is in the area, I'd love to take you to lunch and learn from you. The $100 steak is on me :). I'd also be willing to throw some cash into any charity you choose.

I have been trying to pick a lane for the last 6 months and keep going into analysis paralysis. At this point, I realize I just need to pick a lane and take action. I know everyone will be biased toward the strategy they prefer, but I want to hear from those successfully generating income from STR specifically.

What books did you read to help you start? How did you find the right market? How do you know you are going to make money and avoid a trap? What is the time commitment to be successful in this strategy? I have heard it is more active than some of the others.

I am looking for someone willing to come along beside me and talk to me about the basics.

[Lee Hampton]

Short-term rentals (STRs) can be lucrative, though there are headwinds ahead in Houston. The current city administration has telegraphed plans to introduce regulations this year. The initial phase will involve a registration requirement and an as-yet-undetermined annual permit fee per unit. The second phase will introduce modest restrictions, with continued data analysis to inform further regulatory measures. The era of unrestricted, unregistered STR operations in Houston is coming to an end. Based on my observations, there appears to be sufficient support among council members to implement registration and some restrictions. It looks like they are taking cues from recent regulations implemented in Arlington, TX.

That being said, the success of short-term rentals (STRs) boils down to fundamental factors such as location, pricing, and execution. I manage both long-term rentals (LTRs) and STRs, currently operating seven STRs, all of which are profitable. My approach is somewhat unique since I'm a builder; I build my units from the ground up and then decide whether to use them for LTRs, STRs, or sell them outright. Managing STRs involves more effort due to high turnover. I've shifted my focus from weekend stays to targeting guests who need accommodations for 30+ days. However, I still occasionally offer shorter stays.