Renovated Houston Airbnb: 3BR, 2BA with Pool & 6.7% Cap Rate

2619 Stoney Brook Drive Houston, TX 77063

$695,000 | 3 Bedrooms | 2 Bathrooms | 6.7% Cap Rate

‍I'm Interested in this Property

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Listing: Awning - Redfin - Zillow

Airbnb Estimator: Awning

Market Data: Airbnb Market Data

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Welcome to your next investment opportunity! This stunning, fully furnished, and renovated rental property in the highly sought-after Briarbend neighborhood of Houston is just waiting for you. Boasting 3 bedrooms and 2 bathrooms, this home has been upgraded to perfection with a beautiful kitchen featuring Calacatta gold quartz countertops, stainless appliances, subway tile backsplash, and range with stainless vent hood. The sunroom/flex room off the living room gives you plenty of options to utilize the space.

Enjoy the refreshing pool in the totally private backyard, perfect for easy entertainment and relaxing days. This home is not located in a flood zone and has an HOA fee of only $62.5 per month. We estimate a furnishing expense of $5,000 and an estimated renovation cost of only $5,000 to ensure the property is rent-ready, you can start making a profit right away.

Located just 12 minutes from the Houston Arboretum & Nature Center and 20 minutes from Downtown Aquarium-Houston and Houston Zoo, this property is sure to attract guests looking for the perfect blend of city living and natural surroundings.

With an impressive cap rate of 6.7% and a projected 10-year return of 25.2% per year, this property offers an outstanding short-term rental  investment opportunity.

The Airbnb Investment Financials

How much does the home cost?

$695,000  

‍How much will it earn on Airbnb?

$8,800 per month

‍How much will it cost to furnish it?

According to the listing information, the home is fully furnished, and we estimate the buyer would need to spend up to $5,000 to replace or add additional items.

‍How much will it cost to renovate?

According to our analysis, the estimated renovation cost for this property is $5,000. These repairs are intended to improve the appearance of the house and ensure that it is rent-ready. However, please note that this is just an estimate provided by the listing agent and may not be a comprehensive assessment of all necessary repairs or renovations. It's recommended to conduct a thorough inspection and evaluation before making any renovation plans.

‍How much cash can you take home in the first year?

According to the Awning Analysis provided in the listing, the estimated monthly Airbnb revenue for this property is $8,800. Based on this estimate, the projected monthly cash flow after expenses and mortgage payments in the first year would be $9,604. Therefore, the estimated cash that could be taken home in the first year would be $9,604 per month or $115,248 for the year. However, it is important to note that these projections are based on a proprietary formula and may not take into account all factors that could impact the property's financial performance.

‍What is the cap rate for this property?

The estimated cap rate is 6.7%.

‍All of the cap rates and returns for this property are estimates and are not intended as a guarantee of income or returns. Every investment has risks. It's important to discuss any investment, returns, regulations, laws and projections with a financial advisor, attorney or another fiduciary.

Houston Short-Term Rental Regulations

What are the short-term rental laws and regulations in Houston, Texas?

Houston, Texas has short-term rental regulations in place that hosts must follow. All short-term rental properties must be registered with the city and have a permit. Additionally, hosts must obtain a Hotel Occupancy Tax (HOT) permit and pay the appropriate taxes on any rentals. Hosts are also required to comply with certain safety and health standards, including having smoke detectors and fire extinguishers, and following guidelines for pool and spa maintenance. There are also restrictions on noise levels and occupancy limits, and hosts must provide guests with a copy of the city’s short-term rental regulations. Failure to comply with these regulations can result in fines and penalties. It is important for hosts to stay up-to-date on any changes to the regulations to ensure they are in compliance.

‍Is there a moratorium in short-term rentals in Houston, Texas?

As of April 2023, there is no moratorium on short-term rentals in Houston, Texas. However, short-term rentals are subject to regulations, and hosts are required to obtain a permit from the city. The permit requires hosts to comply with various regulations, such as occupancy limits, noise restrictions, and parking requirements. Additionally, short-term rental hosts must collect and remit a hotel occupancy tax of 17% on all rentals lasting fewer than 30 consecutive days. It is important for hosts to understand and follow these regulations to avoid fines and other penalties. The city of Houston periodically reviews and updates these regulations, so it is important for hosts to stay informed of any changes.

Why Airbnb Guests Stay In Houston, Texas

‍Where is Houston, Texas?

Houston is a city located in the southeastern region of the state of Texas in the United States. It is the largest city in Texas and the fourth-largest city in the United States, with a population of over 2.3 million people. Houston is situated near the Gulf of Mexico and is known for its diverse culture, world-renowned museums, and NASA's Johnson Space Center.

What is there to do in Houston, Texas?

• Visit Space Center Houston: This is the official visitor center for NASA's Johnson Space Center and offers many interactive exhibits and displays.
• Explore the Houston Museum of Natural Science: This museum has many exhibits on science and nature, including a planetarium, a butterfly center, and a dinosaur exhibit.
• Check out the Museum of Fine Arts: This museum has an extensive collection of art from all over the world, including pieces by famous artists like Van Gogh, Picasso, and Monet.
• Take a stroll through Hermann Park: This large park has many walking paths, gardens, and a lake, as well as several museums and the Houston Zoo.
• Catch a game at Minute Maid Park: Home to the Houston Astros, this stadium has a retractable roof and many amenities for fans.
• Visit the Houston Zoo: This zoo has over 6,000 animals, including elephants, giraffes, and big cats.
• Experience the Houston Livestock Show and Rodeo: This annual event takes place in March and features rodeo competitions, concerts, and a carnival.
• Explore the Buffalo Bayou Park: This park has many trails for walking and biking, as well as kayaking and other water activities on the bayou.

What kinds of people travel to Houston, Texas?

• Business travelers: Houston is a hub for many industries, including energy, healthcare, and technology, so business travelers often come to the city for conferences, meetings, and other work-related events.
• Tourists: Houston has many popular tourist attractions, such as Space Center Houston, the Houston Museum of Natural Science, and the Houston Zoo, which attract visitors from around the world.
• Sports fans: Houston has several professional sports teams, including the Houston Texans (football), Houston Rockets (basketball), and Houston Astros (baseball), so sports fans often come to the city to catch a game.
• Foodies: Houston is known for its diverse culinary scene, with many restaurants serving up international cuisine, barbecue, and Tex-Mex dishes.
• Music lovers: Houston has a vibrant music scene, with many live music venues showcasing a range of genres, from country to hip-hop to jazz.
• Art enthusiasts: Houston has many museums and galleries, including the Museum of Fine Arts Houston and the Menil Collection, which feature works by both local and international artists.
• Students: Houston is home to several universities and colleges, such as the University of Houston and Rice University, so students and their families often come to the city for campus visits, graduations, and other academic events.

‍When are the busiest and slowest seasons for tourism in Houston, Texas?

The busiest season for tourism in Houston, Texas, is generally from late fall through early spring. This is when the weather is mild and pleasant, making it a popular destination for travelers looking to escape colder climates. The holiday season, including Thanksgiving and Christmas, can also be a busy time in Houston.

The slowest season for tourism in Houston, Texas, is typically during the hot and humid summer months from June through August. Many locals leave the city during this time, and the heat can be a deterrent for visitors. However, some tourists do still visit during the summer months to take advantage of lower hotel rates and summer events like concerts and festivals.

‍How far is Houston, Texas from the nearest airport?

Houston, Texas has two major airports: George Bush Intercontinental Airport (IAH) and William P. Hobby Airport (HOU). The distance between downtown Houston and each airport is:

• George Bush Intercontinental Airport (IAH): approximately 20 miles (32 km) north of downtown Houston
• William P. Hobby Airport (HOU): approximately 11 miles (18 km) southeast of downtown Houston.

‍Are there any major events in Houston, Texas?

• Houston Livestock Show and Rodeo: One of the largest rodeos in the world, featuring a month-long lineup of concerts, rodeo events, livestock shows, and more.
• Houston International Festival: A multicultural event that celebrates diversity with live music, food, dance, and art from around the world.
• Houston Pride Parade: An annual event celebrating the LGBTQ+ community with a parade, festival, and various activities throughout the city.
• Houston Art Car Parade: A parade featuring cars transformed into works of art, attracting over 250,000 spectators.
• Bayou City Art Festival: A juried art show featuring works from over 300 artists, held twice a year in downtown Houston.
• Texas Renaissance Festival: One of the largest Renaissance fairs in the United States, featuring medieval-themed activities, performances, and food.

What Airbnb amenities do guests expect and pay a premium for in Houston, Texas?

• Pool: With Houston's warm climate, having a pool can be a major selling point for an Airbnb listing.
• Outdoor space: A private outdoor area such as a patio or garden is another popular amenity that can make an Airbnb listing more attractive.
• Full kitchen: Many Airbnb guests prefer the option to cook meals in-house, and having a full kitchen with all the necessary appliances and cookware can be a major advantage.
• Free parking: In a city like Houston where driving is often necessary, offering free parking can be a valuable amenity for guests.
• High-speed Wi-Fi: With more people working remotely, having fast and reliable Wi-Fi is becoming increasingly important for Airbnb guests.
• Washer and dryer: Offering a washer and dryer can be a convenient amenity for guests who want to pack light or do laundry during their stay.
• Air conditioning: Houston's hot and humid climate makes air conditioning a must-have amenity for many Airbnb guests.
• Flexible check-in and check-out: Guests appreciate flexibility with check-in and check-out times, and hosts who can accommodate their schedules may be able to charge a premium.
• Cable TV: While many guests may use streaming services like Netflix or Hulu, having cable TV can be a nice perk for guests who want to watch live TV or sports.
• Gym or fitness center: Guests who prioritize fitness may appreciate access to a gym or fitness center, either within the Airbnb building or nearby.

From Listing to Airbnb

1. Place an offer on this property: If you have a local real estate agent forward them this email and let them know you are interested in the property. If you want help finding the best representation, simply reply to this email and request an agent. Awning will get in touch with it’s network of agents. It’s best to be qualified for a mortgage, here is a list of lenders that work with Airbnb investors.
2. Close on the property: Closing on this property should be simple. An agent will help you review the contract and confirm that everything in the inspection report makes this a good deal.
3. Renovate and furnish the property: This property is easy to renovate and furnish. Then you’ll need some items, which you can find in this Airbnb Host Checklist.
4. Gather necessary documents and permission: You’ll want to consult Texas Short Term Rental Laws. In most cases, you won’t require an attorney as the paperwork process is straightforward.
5. List the property on Airbnb: To list your property on Airbnb you’ll need a description, title and professional photography.
6. Manage the Airbnb: If you choose to self-manage the Airbnb you should not have much trouble finding reliable cleaners in the area.
7. Awning Management: If you choose to use Awning Property Management we can take care of gathering documents and list the property for you. You can learn more about Awning Property Management or reach our team by responding to this email.