All Forum Posts by: Timothy Church

Originally posted by @Mike Reynolds:

Originally posted by @Account Closed:

What are the estimated prices of the luxury condos you are researching. I think Galveston needs more condos for sure. As a real estate agent, I know so many investors that want to buy more properties in Galveston and they focus on the price, HOA, and views. I'm assuming they would all have a view. I wouldn't say we nessasarily need high end luxury. Nice pools, and a restaurant on site would be nice. Options of 1,2,and 3 bedrooms would be nice and laundry available in each unit would be a huge luxury in my eyes. Would it be like San Luis resort? I would love to see a new complex come to Galveston. There isn't a lot of new complexes and my clients have asked for newer so I think this is a great idea. Galveston is up and coming fast with them extending the beaches and soon adding bathrooms and showers. I know prices are only going up and more and more people are learning what Galveston has to offer. Who knows I might want to buy one of your new condos. Please keep us posted here if you end up doing this.

Thank you,

 Hello again Patty. Do you have any info on cove view condos? I am just wondering if they are too far off the water. What do you usually require when you vet one down there? And do you have someone there that does the cleaning after the guest leaves? 

 The Cove View area condos are nice but don't perform as well as short term rentals. They are primarily long term rental and second homes. With the market for short term rentals increasing through programs like AirBnB, many people are jumping on board (I'm closing on two more this week) With that being said there are certain condos that perform better than others. At the sub $100k range the Victorian out performs Casa del Mar. Above that point The Dawn and Maravilla have been performing really well. It really depends on what exactly you are looking for and your price point. The main benefit is with all of today's technology, remote management has never been easier. I live on the island and still don't have to visit my units since I have enough systems set up. The key is good cleaners. I'd be more than happy to recommend some if you'd like.

I agree with Patty! Galveston is a wonderful market. We do have the issue that most of our beach side condos were built decades ago. Since these are dependent on the individual owner for renovations some of these are stuck in the era they were built. The seawall itself is built out to an extent that it would be hard to place any new construction on the east end of the island. Also Tillman Fertitta has push legislation through the city to restrict new hotels and condos along the seawall. Since he owns San Luis it is an smart business move but it does limit you to the west end. There are several water front lots available that could make wonderful complexes. As the east end has been filling, the city is slowing extending to the west. This could put you in a wonderful position to build before the city expands to that point. I believe if you get a decent lot right passed the point that seawall ends, you'd be in a good position. You'd be close enough to town for events and dining but far enough west that you practically have a private beach for your condos. I love discussing the Galveston market so feel free to message me any time. The more I talk about it with investors the less I bother my wife discussing it! 

Good morning,

Just curious what exactly you are looking for. I have a few 2/1 homes that are listed and am continually working with investors to find properties. PM with details and I'd be happy to find something for you here on the island. 

Good afternoon, I'm a realtor and real estate investor in Galveston. Would love to network with more people in my area.

@Bob Gillar

I work as a realtor in Galveston which is a primarily tourism based town. We have many vacation rentals that are used throughout the year. I personally would lean toward the larger near the more family activities. This would help to support a more family based clientele which is preferred. There are also ways that you can help to mitigate risks of vacant properties. One of the big things down here are the roller storm blinds. These are wonderful because they can cut down vacant utilities, protect from storms, and help to prevent break ins. I also use a system on vacation rentals called August Locks. These locks use your phone as a key but also have a keypad that can be purchased. This give you a secure way to give renters access only during their allowed time without worrying about a key being copied. In fact the system is a partner with AirBnB to allow for it to be automatically set up if it is booked through there. After that you simply need to set up a cleaner to use the same system to clean between guests. With all that in place you have mitigated the primary reasons for using a property manager. You will also need a few contacts for handymen in case something does break.

I hope that helps a bit to answer some questions. If you have any more I'll answer to the best of my ability. I obvious can't tell you how often it will be rented or for how much because that is market to market. You can use www.airdna.com to get AirBnB data for the area. That is always helpful!

@Bob Gillar

I was considering it since my first showings aren't till 3 in Kemah. I've never been to one before but figure I need to start. Have you been?

I've always had an interest in investing in resort destinations. Using the property as an excuse to write off a vacation is always nice! Are you doing all of the remotely?

Yes the depreciation is wonderful! Also it is a lot easier to hold within an LLC for liability reasons versus flipping. The only flipping I do is for the BRRR strategy or for cash add deals on commercial properties.

Personally I have stuck to the buy and hold method so far. It's more of a long term strategy but the risk is slightly mitigated through experience versus flipping. The issue I have with flipping is though you can set up and plan for a set return, rarely is that the return you get. Between price negotiations and holding cost you typically wind up with less than the initial plan. The debt down payment, slow appreciation, and cash flow allow for me to plan out my next purchase. Buy two 4-plexs and let them work!

Personally I have always done a straight line depreciation. I always assumed the the double declining was more for assets like computers or vehicles which lose a large amount of their value instantly and more so in the first few years. In my mind real estate should be straight line but that's just my opinion.