Round Rock, Texas

[Joshua26]

I am considering a BnB in Round Rock, Texas. The house I am considering purchasing is a 3 bedroom single family home. Can anyone tell me what kind of vacancy rates I could expect in this area? This is a huge investment and I am trying to research it.

Thanks,

Joshua Bair

[Victoria57]

@Joshua26 sorry but we're just hosts like you will be and we are based all over the world so there is no way we can know what your vacancy rates might be. Hopefully there will be someon in your area who can answer this but I suspect you will have to do the research all on your own.

[Melanie58 · Accepted solution]

I think the things to research are:

1 - Airbnb.  Type in Round Rock Texas.  Observe the types of listings.  Observe the pricing.  Observe the calendars and see how often the listings are booked.  

2-Triangulate a map.  In Texas people drive.  Figure out what is between 5-8 hours from Round Rock.  I live in between Yellowstone and Portland, and Arches and Canada.  Almost everyone that stays here is going from one of those places to another, or headed home to Oregon/Colorado/Canada after being at one of those places.  

3-Rules, Regs, laws.  In Idaho, it is now illegal for a HOA to add in language to ban short-term rentals after the fact.  But a new HOA can write their rules to already exclude short-term rentals and it's fine.  So these things are important.  IS there a HOA?  What is the street parking situation if it is in an urban area - are permits required?  Are there rules about operating home businesses?  All that kind of junk.  

Then you can decide:)

[Joshua26]

Thanks Melanie!

This is very helpful I will start keeping track of some of these items. I do know Austin has regulated short term rentals and they have stopped issuing licenses for Type 2 rentals. Round Rock is considering the same , it has been mentioned in the city council but they have not done so yet.

[Helen3]

Only buy if you can afford the mortgage if the property isn't occupied.

Why have you decided to buy there - is it near tourist attractions? a historic centre? near beautiful open spaces? What type of people tend to stay in the area - tourists, business people, students, couples, families - which market is your property suitable for?

You can speak to your local tourism people they may have tourism reports (paid for or free) showing footfall in your area in terms of visitors and current bed numbers

You need to invest in research before making any decisions. Look at doing a business plan (this is a business) and letting through a variety of providers.

[Joshua26]

The mortgage would be very affordable if it is rented out as a long term rental, which I got vacancy reports on those types of properties and they rent almost immediately. The Round Rock area is quite nice, its within 20 miles of the 11th largest city in the United States, and one of the fastest growing cities in the United States. There is a lot to do in that area. As far as being able to afford the mortgage if it doesn't rent out at all, that could be a different story. It would be for awhile but it could become a burden after a finite period of time, and then I suppose I would have to make a decision as to whether or not to convert to a long term rental.

Thanks for your help

Joshua Bair

[Dawn33]

In some parts of Texas, it is easier to measure distance by miles.

In the Austin/Round Rock area, it would be more realistic to measure by minutes, due to traffic. Haha.

Good luck on your venture.

[Joshua26]

Thanks Dawn,

I'm sure that is true. I lived in Texas for 10 years. Honolulu has some very interesting traffic as well. I am curious are your bookings fairly steady in San Marcos (I love that area as well , although not feasible for a me at this time ) or is it somewhat feast or famine?

Thanks again,

Josh

[Barbara51]

Also check out VRBO, Home Away and others to see what your competion is. 

[Audrey423]

@Joshua26 what did you decide?

[Joshua26]

Audrey - I bought a house in Pflugerville but I didn't do a BNB. We just decided that with the regulations and things in the area and the hassle of it , that it wasn't worth it to us. The house was purchased in 2016 and it seems to be accruing value, so we are happy with our decision.