Last updated on June 21st, 2023
Airbnb investment analysis lake conroe
If you’re looking to invest in a property that’s considered an ultimate recreational destination, Lake Conroe will certainly surprise you with its beauty! Although it’s a manmade attraction, Lake Conroe has truly attracted travelers who want to escape city life. Plenty of locals are visiting Lake Conroe from Houston due to its close proximity to the city, as well as communities from Montgomery County to enjoy boating activities and elegant waterfront dining.
For property investors who are considering living in Lake Conroe, expect that there is plenty of waterfront paradise. Not only will you earn money as a passive income, but will certainly enjoy the picturesque views and activities such as fishing & kayaking.
Setting the exciting waterfront activities aside, some of the must-try restaurants when visiting Conroe are GuadalaHARRY’s Bar, Southern Star Brewing Company, and Marble Slab Creamery. It’s also a great balance since there are shows for entertainment at the Crighton Theatre where one can enjoy a night out and shop at Waterpoint Shopping Center.
In this article, we’ll feature Lake Conroe and discover whether it’s profitable for Airbnb investment and set out actual Lakefront homes for sale in Lake Conroe, TX. Stoked yet? Continue reading to learn more!
Pros of Property Investment in Lake Conroe, Texas
Lake Conroe is considered a popular summer adventure destination in Texas, but what else is there to know? Check out some of the perks when investing in a property for Airbnb in Lake Conroe:
1. High Appreciation Rate
In general, Texas has the strongest housing appreciation rates in the country which reassures exceptional real estate investments in the long run according to Norada Real Estate Investment. Particularly in Lake Conroe, the housing markets are expected to rise from $253,698 to $262,841 in a year and a decrease is unlikely to occur.
Source: Wallet Investor on Conroe Real Estate Forecast
2. Good Source of Passive Income
If your intention to purchase a property in Lake Conroe is to have a passive income and have a beautiful home by the lake at the same time, then it’s truly meant to be! Lake Conroe is a popular vacation destination with a 41% seasonality according to Airbtics. An average host in Lake Conroe can expect the highest revenue of $3,888 for the month of July and the lowest with $1,898 during December.
3. Houses are Newly Constructed
Worried about purchasing a house with plenty of maintenance and other unexpected renovation costs? In Lake Conroe, this isn’t the case. Neighborhood Scouts confirms that 50.2% of the homes in the area are newly constructed, so expect that there isn’t much to pay for unexpected costs unless you prefer to renovate the property.
Cons of Property Investment in Lake Conroe, Texas
Now that we’ve discovered the pros of investing in Lake Conroe, let’s discuss some of the cons so you can know what to expect when starting a property investment in this area. It’s always better to look at the two sides of each coin in order to properly set your expectations!
1. Expensive Insurance Than Average
According to The Property Source, Lake Conroe properties have the potential for natural disasters, therefore, insurance is usually higher than non-waterfront properties. To make sure that your hard-earned money isn’t wasted when flood or water damage happens, it’s better to be safe than sorry. Speaking with real estate agents or property experts in Lake Conroe can certainly help make this decision properly.
2. Prepare for Unprecedented Events
Aside from costly insurance fees, natural disasters can’t be prevented in the area and home maintenance costs can also increase when this happens. Similar to the drought incident in 2011 where several businesses and vacation homes have been affected, HAR declares that this is something that all potential property investors in Lake Conroe should consider.
Best Neighborhoods for Airbnb in Lake Conroe, Texas
Filtered for a 1-bedroom apartment, here are some of the important Airbnb key metrics to discover which is the most profitable neighborhood in Lake Conroe. Here is a brief overview of some of the most recommended and profitable neighborhoods in Lake Conroe:
1. Walden
- Annual revenue: $26,902
- Average daily rate: $119
- Occupancy rate: 53%
2. Seven Coves
- Annual revenue: $22,481
- Average daily rate: $136
- Occupancy rate: 42%
3. April Sound
- Annual revenue: $15,899
- Average daily rate: $108
- Occupancy rate: 34%
Is Property Investment Profitable in Lake Conroe?
Using an Airbnb profit estimator, it was discovered that a 2-bedroom apartment in Lake Conroe can generate an annual revenue of $42,791 with a steady occupancy rate of 62% and a nightly rate of $150.
Airbnb investment analysis lake conroe
Airbnb investment analysis lake conroe
Lake Conroe Waterfront Homes for Sale
Purchasing a waterfront property in Lake Conroe will not only reassure you to have access to a delightful vacation spot, but it can also bring an excellent return on investment and become a reliable income stream. It may be difficult to find the best properties that have the potential to produce high yields and capital growth, and this article will certainly help you through.
Check out some of the Lake Conroe homes for sale, along with the calculated gross rental yield, cash-on-cash return, and annual revenue.
9287 Everwood St, Willis, TX 77318
1. Studio-type Property for Sale Lake Conroe
- 3.7 miles to Lynn Lucas Middle School
- Asking Price: $75,000
| GROSS RENTAL YIELD | 13.70% |
| ANNUAL REVENUE | $10,278 |
| CASH ON CASH RETURN | 15.34% |
8890 Water Oak, Willis, TX 77318
2. 1-Bedroom Type Property for Sale Lake Conroe
- 4.1 miles Parmley Elementary School
- Asking Price: $65,000
| GROSS RENTAL YIELD | 25.25% |
| ANNUAL REVENUE | $16,413 |
| CASH ON CASH RETURN | 49.98% |
13711 Lookout Ct, Willis, TX 77318
3. 2-Bedroom Type Property for Sale Lake Conroe
- 4.6 miles to Child Care Hardy Elementary School
- Asking Price: $94,000
| GROSS RENTAL YIELD | 21.84% |
| ANNUAL REVENUE | $20,534 |
| CASH ON CASH RETURN | 39.77% |
10694 Pine St, Willis, TX 77318
4. 3-Bedroom Type Property for Sale Lake Conroe
- 1.5 miles Child Care Hardy Elementary School
- Asking Price: $139,000
| GROSS RENTAL YIELD | 23.91% |
| ANNUAL REVENUE | $33,239 |
| CASH ON CASH RETURN | 45.97% |
905 Crystal River Rd, Montgomery, TX 77316
5. 4-Bedroom Type Property for Sale Lake Conroe
- 3.8 miles to Keenan Elementary School
- Asking Price: $259,900
| GROSS RENTAL YIELD | 21.57% |
| ANNUAL REVENUE | $56,065 |
| CASH ON CASH RETURN | 38.95% |
Conclusion
Lake Conroe certainly offers picturesque views with plenty of waterfront activities that all can enjoy. However, it can’t be recommended for property investors who are looking for a property with stable expenses as natural disasters can occur anytime.
On the other hand, it’s definitely a summer destination and it can generate a nice cash flow for property investors as long as the right neighborhood is targeted. In order to have proper knowledge of one’s potential revenue, using an Airbnb calculator will provide accurate results.
