Mid-term STR by room or whole house? East Austin

Mid-term STR by room or whole house? East Austin

Syndicator · Austin, TX · Member since 2014 · 85 posts · 47 votes

I have a house in far East Austin (just east of 12th and Webberville for those familiar with the area) which I originally intended as a flip, but now I'm in love and can't let it go. Kidding, but the full story is much longer and boring.

I have one property I rent as an STR and I'm considering doing the same thing for this house, though it's much further outside the city center and a 20 minute drive from where I live as opposed to a one-minute walk. One thought I've had is to go with a mid-term rental approach making it a 31 day minimum rental, renting the whole house. Then I talked to another local investor who's renting his out by the room with a 31 day minimum. He's even further out of town but crushing it. Says he gets a lot of traveling nurses.

I can't get my head around strangers being ok sharing a house with another stranger, how to handle the make ready at turnover, and if some potential guests are going to want to meet/vet the roommates.

The upside is the increased revenue potential. The downside - ? Are there potential roommate issues? Do I have to worry about mixing genders? Other hassles? Has anyone done the roommate STR scenario before and able to offer advice? Any guidance on the mid-term plan would also be welcomed.

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  • Cedar Park, TX · Member since 2015 · 377 posts · 200 votes
    10y

    Are you familiar with how the city is treating STRs in the near future?  I believe within the next 2 years, unless it is your primary residence, they will not allow STRs.

    On a side note, it seems 12th Street is a magical dividing line regarding property values.  We just sold a house on Webberville a couple of months ago.  We would have gotten 20-30k more if we were south of 12th Street.

  • Syndicator · Austin, TX · Member since 2014 · 85 posts · 47 votes
    10y

    Thanks @Hugh Ayles. Yes, I keep close tabs on that stuff since I'm in the game. STR rules currently only apply to stays under 30 days, so doing 31+ keeps me out of those rules.

    That's interesting about your property near there. Makes sense. 12th Street seems to be an "entertaining" dividing line.

  • Cedar Park, TX · Member since 2015 · 377 posts · 200 votes
    10y

    @Brad Shepherd

    You will be very close to the new teaching hospital.  This might be a good target market for you.

  • Syndicator · Austin, TX · Member since 2014 · 85 posts · 47 votes
    10y

    Good point. It seems like there are a lot of traveling nurses coming here already. That should only help.

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