I am looking to buy my first short term rental property. I'm considering South Padre Island, TX or Port Aransas, TX. I have a realtor friend who owns in South Padre and does very well with her property. She advises South Padre. My friend network mainly goes to Port Aransas. Where can I do the research to find out which area is better for short term rental investment?
Real Estate Agent · Texas Tennessee · Member since 2019 · 93 posts · 83 votes
5y
@Shannon Green I’m from TX and ran the numbers on all the coastal towns as well as Fredericksburg and a couple lake rentals. Nothing compared to what I could make in the Smoky Mountains. I recently sold my first cabin I bought in 2019 for a six figure profit and am under contract on a new build in Gatlinburg that should be completed this spring. Even with higher current prices there, homes in TX are of similar cost, but don’t have the occupancy and average nightly rate. Just something to consider...
South Padre Island, TX · Member since 2018 · 81 posts · 69 votes
5y
@Shannon Green We have a single family STR on South Padre and is has performed really well. We are booked year round even in the "off season". I can't speak to Port Aransas though.
On SPI I would recommend getting a single family. They are much more expensive and harder to find, but that will make you stand out on the rental market. Only 15% of the Island consists of single family, and a portion of those are owner occupied. But when you are sifting through Airbnb every condo looks exactly the same, with the same finishes, layout, and amenities. You also don't have much control over your pricing when there are 200 identical units in the same property up for rent as well.
@Jake F. thank you for your feedback. A single-family home is exactly what I am looking for. My realtor friend that has a home there is a single family with a pool. They swear by that model and they swear by South Padre Island over Port Aransas, but they’ve never invested in Port Aransas. Maybe it’s because I live in Austin and I hear so many people going to Port Aransas and South Padre Island is so far to me. Just want to make sure whichever I choose will have the best rental potential. Thank you for sharing your insight!
Property Manager · Atlanta, GA · Member since 2016 · 127 posts · 48 votes
5y
@Shannon Green reach out to me and I can run a few addresses and provide you with an analysis that breaks down historical revenue and overall market trends based on real booking data from the last 12 months. This may help you decide exactly which area you would like to focus on.
Real Estate Agent · Texas Tennessee · Member since 2019 · 93 posts · 83 votes
5y
@Shannon Green I’m from TX and ran the numbers on all the coastal towns as well as Fredericksburg and a couple lake rentals. Nothing compared to what I could make in the Smoky Mountains. I recently sold my first cabin I bought in 2019 for a six figure profit and am under contract on a new build in Gatlinburg that should be completed this spring. Even with higher current prices there, homes in TX are of similar cost, but don’t have the occupancy and average nightly rate. Just something to consider...
@Reagen Nathothanks for the information! My goal is to own three within the next five years. I will definitely look into the location you speak of while doing my research! Thanks so much for the tip!