Vacation Rentals in Sargent, TX

[Jake Dearmon]

During the summer the family loves to spend time down in Sargent, TX. It's got a small town vibe (rightfully so) but can get very busy with the Houston crowd during the summer months. I've done quite a lot of REI strategies throughout the years but vacation rentals is not one of them.

I was looking at potential deals to buy and lease out (BnB) while we are not down there. Doesn't need to cash flow, just something to pay the mortgage. I've run the numbers but can't seem to make it work with the estimates I see from other BnB's in the area. Has anyone else considered this area for the same strategy?

[Barrett Bridgewater]

@Jake Dearmon @David Martin @James Siller Flood Zones can break or make a deal.  We know how they break one... but how do they make a deal?  

Consider: the FEMA Flood Map is highly inaccurate. As an engineering firm (National Flood Experts) we've been able to qualify properties for flood designation removals and we have success petitioning FEMA to get that done. 

So, if the current owner thinks it is in a flood zone they are selling it cheaper and they are paying yearly flood insurance. BUT, if we can tell you it can be removed... then you buy at that lesser amount, we flip it off the FEMA Flood Map, your lender mandate forcing you to buy flood insurance goes away, and now you have built in NOI no one knew was possible.

Because of the Flood Map inaccuracies a Flood Zone property could be an opportunity waiting to be discovered.