With Waco's popularity (thanks Magnolia & Baylor), STRs and Airbnbs have surged and the market is becoming very over saturated. Now, the city is quietly tightening enforcement and making noise about new permit requirements and limits. City planners are now requiring new STR permits, even for existing properties, cracking down on non-owner-occupied rentals, and even owners are being asked to provide proof of HOT tax compliance and submit renewals annually. If you're looking to buy, ask the seller for permit history, tax filings, and prior booking records and always have a mid term or long term backup plan.

Just because a property has been on Airbnb doesn’t mean it’s legal or sustainable going forward. Make sure you're not buying someone else's ticking time bomb.