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We did our research and compared short-term rental income for a 3 bedroom coastal home and a 4 bedroom coastal home in Galveston, the results were eye-opening!

In today’s market, you should expect to pay on average $370,000 for a 3 bedroom 2 bath new beach home in Galveston and $592,000 for a 4 bedroom 3 bath coastal home in the same market. That is a big price difference so many buyers only consider the purchase price when making a decision and tend to buy based on a lower price.

So our team took a deeper look and put together an easy quick reference guide to help new buyers in the market understand how much short-term rental income they should expect from each size home. We used AirBNB’s income tool “AirDNA” to pull our rental rate daily numbers for the reference guide. AirDNA, as the name suggests is an analytics platform providing unmatched global Airbnb data and insights with cutting-edge technology to help short-term rental owners make wiser decisions around the world.

The Sapphire Sea Homes reference guide #1

4 bedroom 3 bath, Purchase Price $592,000.00

Monthly Expenses:

Mortgage Expense $2,248.00 30 year / 2.9 interest rate, 20{6a51be1615a1999eb74da11a62d3df2f372bacaf00f5b4884731ce93c5b731cf} down

Insurance/ flood & wind $ 375.00 insurance/ flood & wind $4,500.00 FEMA flood caps @ _- $250,000 coverage
Taxes $ 750.00
HOA dues $ 56.67

Total Monthly Expenses $3,429.67

Short Term Rental Income 4 bedroom

Monthly $8,000.00 based on AIR DNA (AIR BNB tool) $96,000.00
– yearly lease 37{6a51be1615a1999eb74da11a62d3df2f372bacaf00f5b4884731ce93c5b731cf} of the year

Net Monthly Income (income minus expenses) $ 4,570.33
Net Yearly Income (income minus expenses) $54,843.96

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3 bedroom 2 bath priced $370,000.00

Monthly Expenses:

Mortgage expense $1,232.00 30 year / 2.9 interest rate, 20{6a51be1615a1999eb74da11a62d3df2f372bacaf00f5b4884731ce93c5b731cf} down

Insurance/ flood & wind $375.00 insurance/ flood & wind $4,500.00 FEMA flood – – caps @ $250,000 coverage
Taxes $500.00 taxes
HOA $ 56.67 HOA

Total Monthly Expenses $2,163.67

Short Term Rental Income 3 bedroom

Monthly $3,715.50 based on AIR DNA (AIR BNB tool) $44,586.00 yearly – lease 30{6a51be1615a1999eb74da11a62d3df2f372bacaf00f5b4884731ce93c5b731cf} of the year

Net Monthly Income (income minus expenses) $ 1551.83
Net Yearly Income (income minus expenses)
$18,621.96

Final observations:

  1. You will make $ 36,222.00 more per year by opting for a 4 bedroom house vs a 3 bedroom house.
  2. You will realize higher appreciation dollars with a 4 bedroom home as compared to a 3 bedroom.

Call us with questions at 214 451 7579