Real Estate Investing Performance In Galveston
| Avg Purchase Price | Avg Cap Rate | Avg Cash on Cash Return | Avg Cash Needed to close | |
|---|---|---|---|---|
| Commercial 5+ units LTR | $150k per door +/- $50k | 7-8% | 4-5% | $40k per door |
| Short Term Rental (SFH) | $550k | 12% | 10% | 120k |
| STR (2-4 Units) | $200k per door | 14% | 10-11% | $55k per door |
| Long Term Rental (2-4 Units) | 300-400k | 5%-7% | 2% - 4% | 98k |
| Long Term Rental (SFH) | 300k - 350k | 2% - 4% | 2% - 3% | $71,500 |
| Househack (2-4 Units) | 150k - 175k per door | 3-5% | 0% | $12,500 per door |
| Househack (SFH) | 325k - 400k | 2-4% | 0% | $18,750 |
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Galveston Real Estate Investment Tips
Our clients have experienced particular success in several areas of Galveston. Close proximity to the city center or the coastal resort are big factors, as there are plenty of employment opportunities and lots of things to do. And, as part of the Houston metropolitan area, the city is popular for commuters to Houston as well.
Good neighborhoods for Galveston real estate investment include:
- San Jacinto
- Fort Crockett
- Downtown Galveston
Grand Beach is an expensive neighborhood, whilst Central City offers more affordable housing. To attract buyers, look for properties close to basic amenities, schools and shopping malls. This is because the city is attractive for young families, tourists and people seeking the fun, laid-back lifestyle it offers.
Main Activities, Attractions, and Employers in Galveston
Itâs crucial to develop a strong understanding of what drives the economy in a certain location before investing in real estate there. In Galveston, some of the main drivers are the beaches, the fascinating local history and the annual Mardi Gras celebrations.
Top employers in the city include:
- UTMB Health
- Texas A&M University
- American National Insurance Co.
- Schlitterbahn Waterpark
The cityâs main attractions include:
- Mardi Gras
- Galveston Island Historic Pleasure Pier
- Moody Gardens
- Seawall Urban Park
As you can see, there are many tourist elements among both the leading employers and attractions in Galveston, Texas. If you are looking to invest in real estate here, your planning will need to revolve around this. Work with an investor-friendly real estate agent with local expertise to help with this.
Success stories investing in this area
âUsed Victor in finding and purchasing my first investment property. Victor and his team were knowledgeable in providing help along the way especially toward the end while getting everything squared away.â
Logan Hicks
Long Term Rental
Victor was an awesome realtor! We were first time investors in Texas and he was very responsive, experienced, and pleasant. Every question we had he answered promptly and from start to finish Victor guided us thorough the whole process and made the buying transaction as smooth as possible for us! You will not be disappointed by working with Victor Steffen, thank you Victor!
Janeth Quintero
Long Term Rental
Investing Strategies in Galveston
The best strategies for real estate investment in San Antonio are unlikely to work in Galveston, as it is a very different city. Instead, you need to tailor your approach to the specific characteristics of the communities and neighborhoods within the city. With its many tourist attractions, we have found that short-term rentals perform well in Galveston. It also attracts buyers of retirement age, so a fix-and-flip approach could work if you target the right areas.
The key is to work with a real estate agent who understands the local markets and also the needs of property investors. We will do the due diligence into infrastructure development, job growth, and more for local markets to help you tap into Galveston real estate. Every city has its strengths, so let us find where they lie in Galveston so that you can enter the market here with the correct approach.
Is Galveston a Good Real Estate Investment?
With its attractive climate and abundance of tourist attractions, Galveston is a great prospect for real estate investment. Short-term rentals are an extremely viable investment option, and there is a good mix of property types to sink your teeth into. Market trends will be an important consideration, helping you define the neighborhoods with the greatest demand and the best rental prices for your bottom line.
The risk of hurricanes and tropical storms is an important consideration. We can help you research historical trends and find areas where the risks are lower and insurance is cheaper. We will also look into local economies and all the relevant legal and tax considerations. When you work with us, you can make informed decisions with peace of mind.
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