East Tawakoni's Prime Airbnb Opportunity: 3-Bedroom Home with 7.2% Cap Rate

Listing: Awning - Redfin - Zillow

Airbnb Estimator: Awning

Market Data: Airbnb Market Data

Airbnb Listing: Airbnb

Welcome to your next investment opportunity! This charming 3 bedroom, 1.5 bath home in the desirable Whispering Oaks neighborhood of East Tawakoni, TX is an absolute gem. Recently renovated in 2022, this property is move-in ready and perfect for anyone looking for a peaceful retreat or a lucrative short-term rental.

You and your guests will love the open floor plan, fully equipped kitchen, and bright, airy atmosphere that lets in plenty of natural sunlight. The large yard is perfect for enjoying the fresh air and the beautiful community park, playground, and dock are just a short walk away. Plus, Lake Tawakoni and Lake Tawakoni State Park are just a 25-minute drive, offering endless outdoor activities for your guests to enjoy.

As an Airbnb investment, this property has incredible potential with projected monthly revenues of $3,500 and an impressive Cap Rate of 7.2%. And with a furnishing estimate of $27,320 and renovation costs estimated at only $5,000, this property is ready to start earning you cash flow from day one.

Don't miss out on this fantastic investment opportunity in one of the most desirable neighborhoods in East Tawakoni. Contact us today to learn more and schedule a viewing.

The Airbnb Investment Financials

How much does the home cost?

$215,000

How much will it earn on Airbnb?

$3,500 per month

How much will it cost to furnish it?

The estimated furnishing cost is $27,320, which includes the cost of designing the space, the cost of the furniture throughout the entire home, outdoor amenities that are shown to increase average daily rates (ADR), and the cost of shipping and assembly of furniture.

How much will it cost to renovate?

The estimated renovation cost for this property is $5,000, which includes additional repairs to improve the house's appearance and ensure the property is rent-ready.

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

According to the Awning Analysis, the estimated monthly Airbnb revenue for this property is $3,500, with an estimated annual gross revenue of $42,000. After subtracting the estimated operating expenses of $24,511 for the first year, the estimated net operating income for the first year is $17,489.

Assuming a mortgage payment of $11,719 per year, the estimated cash flow for the first year would be $5,770. Therefore, you could take home approximately $5,770 in cash in the first year. However, this is just an estimate and actual results may vary based on a number of factors such as occupancy rates, rental rates, and operating expenses.

What is the cap rate for this property?

The estimated cap rate is 7.2%.

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.

Tawakoni Short-Term Rental Regulations

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

To better understand short-term rental regulations, there are two resources that may be helpful. Hostfully.com provides a general overview of short-term rental regulations in the United States and the challenges that may arise for vacation rental owners. Meanwhile, the National League of Cities has created a dashboard that analyzes 60 short-term rental ordinances from cities across the country against 30 indicators and four categories (legal definition, regulation, enforcement, and permit).

It is recommended to contact the City Secretary of East Tawakoni at 903-447-2444 for any inquiries about clarification of specific sections of code or regulations.

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

There is no moratorium on short-term rentals in East Tawakoni, Texas.

More About East Tawakon, Texas

Where is East Tawakoni, Texas?

East Tawakoni is a city located in Rains County, in the state of Texas, United States. It is situated on the eastern shore of Lake Tawakoni, about 60 miles east of Dallas.

What is there to do in East Tawakoni, Texas?

• Fishing: Lake Tawakoni is known for its excellent fishing, with a variety of fish species including catfish, crappie, bass, and more.
• Boating and water sports: With its location on the lake, East Tawakoni is a great place for boating and water sports like water skiing, tubing, and wakeboarding.
• Nature walks and birdwatching: The nearby Lake Tawakoni State Park offers a variety of hiking trails and opportunities for birdwatching.
• Golfing: The city is home to the Links at Land's End, a golf course that offers beautiful views of the lake.
• Local events: East Tawakoni hosts several events throughout the year, including the annual Fourth of July fireworks show and a Christmas parade.
• Dining: There are a few local restaurants in East Tawakoni where visitors can try some Southern-style cuisine.

What kinds of people travel to East Tawakoni, Texas?

• Lake Tawakoni: This large reservoir is the main attraction in the area and is popular among anglers, boaters, and nature enthusiasts. Visitors can fish for catfish, bass, and crappie, and there are several marinas and campgrounds around the lake.
• Fishing Tournaments: East Tawakoni hosts several fishing tournaments throughout the year, which attract anglers from around the region.
• Hiking and Birdwatching: The lake and surrounding parklands offer opportunities for hiking and birdwatching. The area is home to a variety of bird species, including bald eagles, pelicans, and sandhill cranes.
• Hunting: The area around Lake Tawakoni is popular among hunters, with opportunities for deer, hog, and waterfowl hunting.
• Annual Festivals: East Tawakoni hosts several annual festivals, including the Tawakoni BBQ and Chili Cookoff and the Tawakoni Music Festival. These events feature live music, food vendors, and activities for all ages.
• Local Parks: The city maintains several parks, including the East Tawakoni City Park and the Eubanks Creek Park, which offer playgrounds, picnic areas, and other amenities.
• Antique Shops: The area around East Tawakoni is known for its antique shops, which offer a variety of vintage and antique goods.
• RV Parks: With its proximity to Lake Tawakoni, East Tawakoni is home to several RV parks, which offer campers and RV enthusiasts a place to stay while exploring the area.

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

East Tawakoni, Texas is a great place to visit year-round. The summer months are especially popular for outdoor activities and water sports, while the cooler fall and winter months provide a more tranquil and peaceful experience. The town's friendly community and welcoming atmosphere make it a wonderful destination for families, couples, and solo travelers alike. With a variety of attractions, delicious dining options, and natural beauty, East Tawakoni is a hidden gem waiting to be discovered.

How far is East Tawakoni, Texas from the nearest airport?

The nearest major airport to East Tawakoni, Texas is the Dallas/Fort Worth International Airport (DFW), which is located approximately 80 miles west of the city. The journey from the airport to East Tawakoni can take around 1 hour and 30 minutes by car, depending on traffic conditions. Another option is the Tyler Pounds Regional Airport, located about 60 miles to the east of East Tawakoni, which can also be used to access the city.

Are there any major events in East Tawakoni, Texas?

Yes, there are major events happening in East Tawakoni, Texas. One of the upcoming events is the East Tawakoni Spring Fling Festival, which is scheduled on March 25, 2023, from 11:00 a.m. to 4:00 p.m. This event will feature bounce houses, food vendors, snowcones, kite building, kite flying, and a kite contest. Additionally, there will be a Car, Motorcycles, and Boat Show.

Another event happening in May 2023 is the Twinkle Tour at Lake Tawakoni State Park. This annual event will feature Christmas lights and festive activities at the park. It is scheduled on May 13, 2023, and does not have a specific end time.

It is worth noting that East Tawakoni is a small city with a population of 1,043 as of 2020. Therefore, it may not have as many major events compared to larger cities.

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

• Waterfront views: Many guests choose to visit East Tawakoni for its proximity to Lake Tawakoni, so a waterfront view is highly desirable for many. Properties that offer private docks, fishing piers, or lakeside decks are particularly popular.
• Outdoor living spaces: With East Tawakoni's pleasant weather, guests are often drawn to properties with outdoor living spaces, such as covered patios, decks, or balconies. These areas are ideal for relaxing or entertaining, and can often provide stunning views of the surrounding area.
• Recreational amenities: Guests who come to East Tawakoni for outdoor activities often look for properties that provide recreational amenities like kayaks, canoes, paddleboards, or bicycles. Properties with access to boat ramps or marinas are also highly desirable.
• Fully equipped kitchens: As many guests opt to stay in and cook their own meals, a fully equipped kitchen is a must-have amenity. This includes a range of cooking utensils, appliances, and cookware.
• Wi-Fi and entertainment: While guests may come to East Tawakoni to disconnect from the hustle and bustle of city life, they still expect access to basic amenities like Wi-Fi and entertainment options like cable TV, streaming services, or board games.
• Comfortable bedding and linens: Guests want to feel comfortable and at home during their stay, so high-quality bedding and linens are essential. This includes plush towels, soft sheets, and comfortable pillows and blankets.
• Personal touches: Guests appreciate personal touches that make their stay unique and memorable. This could include small gifts, welcome baskets, or local recommendations for things to do and see in the area.

From Listing to Airbnb

To get the property ready:

• 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.
• 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.
• 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.

Hire Awning to manage your property:

• 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.

Or for Self Managing

• 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.
• List the property on Airbnb: To list your property on Airbnb you’ll need a description, title and professional photography.
• Manage the Airbnb: If you choose to self-manage the Airbnb you should not have much trouble finding reliable cleaners in the area.