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Airbnb Property Investment: Profitable Homes for Sale in Galveston Texas

Last updated on August 16th, 2023

Discover profitable Airbnb investment properties for sale in Galveston, TX this 2023 – from studio to property of 1,2,3, and 4+ bedrooms!

Airbnb Property Investment: Profitable Homes for Sale in Galveston Texas

airbnb property investment Galveston

Airbnb Property Investment: Profitable Homes for Sale in Galveston Texas

Discover profitable Airbnb investment properties for sale in Galveston, TX this 2023 – from studio to property of 1,2,3, and 4+ bedrooms!

Owning a beachfront property is a dream for the majority of people. If you are eager to make this come true by earning a passive income at the same time, then purchasing a property with a beautiful view of the sea is ideal in Galveston!

Airbnb rental arbitrage is preferred by investors who have a limited budget to purchase a property, which means you can do Airbnb by just renting it! However, the main question is: will Airbnb properties be profitable in that area?

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”With a booming real estate market and an increasing number of annual visitors, the city of Galveston is not only a growing hub for tourism, but also an incredible opportunity for a vacation rental investment.

Evolve on Galveston Real Estate

Let’s not get carried away by a property’s design or its proximity to major tourist areas because the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment, specifically when buying a property investment in Galveston.

This includes the best website recommendations for property investment, the prices and properties for sale in Galveston, along with each property type’s gross rental yield, cash-on-cash return, and annual revenue.

Pros of buying an Airbnb Property in Galveston

It’s a fact that Galveston is one of the most fascinating and exciting destinations in Texas, in fact, there’s no shortage of things to do around the city. It doesn’t matter if you want to walk through beautiful beaches or visit cultural attractions, Galveston will always have something to offer you. However, there’s more to learn as to why we recommend purchasing a property in this city. Here are some of the major reasons why you should consider buying a property for Airbnb in Galveston:

1. Real estate market in Galveston: many housing options!

Galveston offers many different housing options, but that’s not everything, because the median property values are also quite affordable! Currently, the average price is $383K with a 1-year value change of 15.9%.

2. The tourist sector is steadily growing

Tourism plays an important role in Galveston’s economy as it brings a lot of tax revenue! Around 7M travelers visit this city annually to experience its great weather conditions and fun recreational activities. This surely will catch investors’ attention who want to cater to tourist accommodations.

3. Great location

Living or investing in Galveston means that you will be close to all types of amenities, but not only that because you will also also be close to major cities such as Houston, Corpus Christi and Austin. In addition to this, it’s just 40 minutes away by car from William P. Hobby Airport.

Cons of purchasing a property in Galveston

Now that we know the pros of investing in Galveston, let’s take a quick look at some of the cons. It’s always better to look at the two sides of each coin in order to properly set your expectations!

1. High property tax

In Texas overall, homeowners face some of the highest property taxes in the US. Galveston’s average effective property tax rate of 1.92%, which is above the national average of 0.99%.

2. Is Galveston a safe city? 

The crime rate in Galveston is something that will highly concern you if you’re thinking of investing in this city. Should you look for a reliable home security system? The answer is yes because Galveston’s crime and property crime rates are 70% higher than the national average. In this city, there’s a 1 in 26 chance of becoming a victim of crime and this has increased by 7% year-over-year.

Best Neighborhoods for Airbnb in Galveston

Let’s take a closer look at the important Airbnb key metrics to discover which is the most profitable neighborhood in Galveston. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods:

1. Pirates Beach
  • Annual Revenue: $48,282
  • Occupancy Rate: 70%
  • Average Daily Rate: $211
2. Lasker Park
  • Annual Revenue: $25,930
  • Occupancy Rate: 63%
  • Average Daily Rate: $131
3. East End Historic District
  • Annual Revenue: $33,863
  • Occupancy Rate: 67%
  • Average Daily Rate: $135

Is Property Investment Profitable in Galveston, TX?

Using a short-term rental calculator, it was discovered that a 2-bedroom apartment in Galveston can generate an annual revenue of $53,057 with a steady occupancy rate of 50% and a nightly rate of $212.

airbnb property investment Galveston

Beachfront Properties for Sale in Galveston, TX

Buying a beach house property will not only let you 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! 

Here are some of the profitable properties in Galveston, along with the calculated gross rental yield, cash-on-cash return, and annual revenue.

airbnb property investment Galveston
airbnb property investment Galveston

5198 SW 32nd St #10-01, Fort Lauderdale, FL 33314

1. Studio-type Property for Sale Galveston
  • 2.1 miles to Oppe Elementary School
  • Asking Price: $74,000
GROSS RENTAL YIELD 26.62%
ANNUAL REVENUE $19,699
CASH ON CASH RETURN 54.09%
airbnb property investment Galveston
airbnb property investment Galveston

1828 Oleander Dr, La Marque, TX 77568

2. 1-Bedroom Type Property for Sale Galveston
  • 1.5 miles to La Marque Elementary School
  • Asking Price: $110,000
GROSS RENTAL YIELD 20.62%
ANNUAL REVENUE $22,678
CASH ON CASH RETURN 36.08%
airbnb property investment Galveston
airbnb property investment Galveston

215 Post Office St APT 604, Galveston, TX 77550

3. 2-Bedroom Type Property for Sale Galveston
  • 5.8 miles to Oppe Elementary School
  • Asking Price: $139,900
GROSS RENTAL YIELD 21.24%
ANNUAL REVENUE $29,708
CASH ON CASH RETURN 37.94%
3-bedroom Galveston
3-bedroom Galveston

1311 37th St, Galveston, TX 77550

4. 3-Bedroom Type Property for Sale Galveston
  • 11.2 miles Crenshaw El And Middle
  • Asking Price: $199,000
GROSS RENTAL YIELD 22.36%
ANNUAL REVENUE $44,496
CASH ON CASH RETURN 41.31%
4-bedroom Galveston
4-bedroom Galveston

5326 Avenue L, Galveston, TX 77551

5. 4-Bedroom Type Property for Sale Galveston
  • 1 mile to Ball High School
  • Asking Price: $245,000
GROSS RENTAL YIELD 26.82%
ANNUAL REVENUE $65,700
CASH ON CASH RETURN 54.68%

Conclusion

In summary, Galveston is a good place to live and invest in Airbnb property thanks to its affordable real estate market, privileged location and recreational activities. However, it’s always best to speak to a real estate agent or expert to reassure you about any further questions you may have regarding your preferred property type. To make sure that a property can generate a nice cash flow, the right neighborhood should be studied and potential revenue should be calculated using an Airbnb calculator.

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Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

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Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

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