All Forum Posts by: Timothy Church

I think that there is a market for mid-term guests but I specialize in the STRs so that is what I see. I know we get a decent number of "Winter Texans" who come from up north in the off-season to escape the cold. I think you'd just have to find the right avenue to advertise and find other mid-term guests. Perhaps getting on a list with UTMB for their housing programs for their staff that's on rotation or something to that extent. I think you could do it but I just don't know if the profitability works.

The island is constantly evolving and improving. I think there are things down the line that could work that aren't be best at the moment and this could be one of them. If there is a personal use as well, you might be able to find an acceptable level of performance for this scenario. It really just depends on what you are wanting out of the deal!

@Karl McGarvey

Glad to see y'all got another one!! 

Owner financing can make a world of difference when you find a seller that is actually willing to work with you. Half the owners I've found who advertise it think of themselves as hard money lenders with 8-10% rates! Glad to see you locked this one down closer to the market rate. Plus with the way this market has been, you could probably do a rate & term refi within that 5 year window without having to put in more cash!

There is definitely a strong rental market down here in Galveston but it will depend on what you are meaning with a 30+ day lease. While the STRs here perform well and there is a good long-term rental market, the mid-term market isn't the best. Most of the people we have coming down for those 30-90 day stints are a few workers on larger projects, traveling nurses, and people who are looking to buy on the island but haven't found a house yet. While they are out there, they aren't the most consistent market. 

Since most downtown buildings do not allow for STRs (per their HOA), you are really only left with long-term rental or the occasional mid-term rental if you are set on having a downtown loft. There are a few buildings that allow them but they are typically ones with very few units in the building or those that are privately owned. I have a building downtown with 6 lofts and currently run 2 of them as STRs. Short of buying the building, it kind of makes you stuck with their rules!

While coastal real estate has its risks, the beach and the various attractions of Galveston are what make it a strong short-term rental market. It is all about what you are wanting and if things here are a good fit. I'd be happy to answer any particular questions you have about the Galveston market though. That way you can see if it is a good fit for what you are looking for.

@Bruce C.

If you are planning for a longer hold, it could work out. There have been great strides made to make this area north of Broadway/West of downtown into a better space. Since it was a bit rough prior to Ike, it has seen a lot of improvement. The city and certain developers have put some serious money into this area. The main issue is it still has a long way to go. You might be able to do some basic things and hold them as lower-income long-term rentals for a long period and have it work out. Not one I'd advise putting in a lot of money to make a vacation rental though.

I think things moving into these neighborhoods will begin to increase due to the sales value people are getting on their homes down here! I know I've shown several homes this year where people bought them just over a year ago and are relisting for $50-75k more having done no work. As people need a more reasonably priced home, they will expand into these areas of Galveston and begin to renovate. It is all about how long you want to hold.

For those who wouldn't have simply guessed, we will most definitely be inside! A bit to cold to brave the outdoor weather!

I actually have one set up for this weekend!

https://www.biggerpockets.com/...

I need to get better about posting it everywhere.

A lot of people go for vinyl as it is typically the cheaper option. While it can work fine, if improperly installed or damaged, it can allow for air to get trapped behind it. The high moisture content of Galveston can lead to mold growth and wood rot over time. 

Hardy plank is the go-to solution for it to be longer-lasting. That stuff holds up extremely well down here!

Most of my window work has been replacing panes instead of full windows. I used Galveston Glass Works for those and they did a great job.

This meetup will be just a casual meet up of like-minded people to discuss real estate, investing, strategies, and anything the conversation leads to. It is a come and go event so please don't feel that you have to be there exactly at 6 or stay till the end if you have other things to do. This is at a bar so there are drinks that can be purchased and they allow you to bring in food if you'd like to bring something or buy something from Gypsy Joynt next door. DTO is a craft cocktail bar that has some great drinks. If everyone seems to like it there, we can keep it as the location or discuss other spots.

Please note: This is not a place to sell services or properties. You are more than welcome to share what you do or property you are selling and people can inquire but please don't try to keep driving conversation into a sales pitch. I want to keep this as a discussion where people can ask questions and learn from each other.

I hope to see y'all there. If you have any questions, feel free to reach out!

Location: DTO - 2701 Market St, Galveston, Tx 77550

Time: February 13th - 6:00 to 8-9ish

**To get to the back patio go into the bar and through the back exit to the right. There is a great courtyard area there to relax!**

Just as a reminder to everyone coming. I'm on the back patio. It is through the door to the back right of the bar. See yall tonight!

Congratulations! That looks like it was an awesome project!

My  wife and I actually met your parents as we bought the two whirlpool tubs you had pulled out for the building I was renovating. Truly a small world and even smaller island!

Glad to see everything worked out. Looks like yall did a great job!