Austin and surrounding areas for mid-term rental

[Heather Rummel]

Hello Everyone!  My sister and I plan to buy our first property together in the Austin, Tx area in the $400/500k range.  We are leaning towards doing a medium term rental (30+ days but not a regular 12 month lease).  We plan to do this so we can utilize a vacation home loan for our first property (we will stay there occasionally).  Curious if anyone has any thoughts on a good location for this.  I don't know the area well and will be leaning on our property manager and realtor for help but I'd love to hear from this group as well.  Thanks so much for any advice!

[Conner Olsen]

@Heather Rummel Like Jordan said I have a monthly rental by the Domain. I have seen that you can make this strategy work in Austin and the immediate suburbs. I'd make sure the property manager is familiar with monthly rentals. Many property managers charge 20%+ for anything short-term rental related and at that point you probably wouldn't cashflow. 

For 400k-500k you can expect $3,000-$4,500 in gross revenue depending on the area. Airbnb will take 3% of revenue as a platform fee. For a 3/2 you might have $400-$550/month for utilities and $10k-$15k in furnishings. Hope that helps!