Lake LBJ / Lago Vista Vacation Rental - Should I buy?

[William Brock]

Hi all!

I'm an Austin investor looking to possibly purchase a short-term rental on Lake LBJ and was wondering if anyone else has a vacation home there or in Lago Vista or the neighboring areas. I currently own 2 long-term rentals, one in Round Rock and one in Louisiana, but a business partner and I like the idea of acquiring a short-term rental somewhere around the lake. I've been to Horseshoe Bay on several occasions, but I don't know much else about the area, specifically how the VRBO's perform and the short-term market there. I really like the idea of being able to use it a couple times a year, but am also interested in getting a good ROI for my partner as this would be his first investment property. I would love to get some insights on the market, specifically:

• What are the annual occupancy rates?
• What means to you use to come up with your nightly rates?
• Thoughts on AirDNA?
• Anyone using Evolve Vacation Rental management or other companies?
• What's your ROI?
• Specific areas to watch out for?
• Any better or worse?
• I heard taxes are high, is that so?
• Is a short-term rental a good idea for a first time investor? I don't want to put a sour taste in my partner's mouth on his first purchase.

Thanks and have a great week!