Looking for outside perspective on what to do with my Dallas home.

It’s a fully renovated 2 bed / 1 bath around 1,000 SF in a desirable East Dallas neighborhood near White Rock Lake. I purchased it in 2024 for ~$465K and completed major renovations including new electrical, wood floors, insulation, new kitchen/appliances, finished laundry, and overall interior improvements.

The home has strong lifestyle appeal, walkable/bikeable access to White Rock Lake, near the Arboretum, sits on a larger lot for the area (~8,000 SF), and has a huge backyard that has been great for my dogs.

Current monthly payment is now about $3,800 and could rise to roughly $4,100 due to an escrow shortage unless I can get that restructured, so reducing carrying costs is a priority.

Based on current market research:

• Long-term rent estimate: $2,650–$2,950/month
• Potential STR appeal due to location, large yard, dog-friendly setup, and major event demand (World Cup, etc.)
• Estimated sale value: likely above purchase basis depending on market and buyer pool

Part of my hesitation to sell is that the area has historically benefited from strong long-term demand due to limited inventory, larger lots, redevelopment activity, and White Rock Lake proximity. I’m also seeing some tear-down / lot-value sales nearby around $500K+, which makes me think the land itself supports value.

I’m currently in a career transition and spending more time outside Dallas, so I’m trying to decide the smartest next move.

I’ll also be honest that I love the house and am somewhat emotionally attached to it after the amount of work put into renovating it, so I’m trying to balance that with making the smartest financial decision.

My priorities are:

1. Reduce monthly financial pressure
2. Preserve flexibility if I need to return to Dallas for work
3. Make the most rational decision, not just an emotional one
4. Avoid making a short-sighted move I regret later

Questions:

1. -Would you hold this as a long-term rental even with negative cash flow at these payment levels?
2. -Would STR be worth exploring in this part of Dallas, or too operationally intensive?
3. -Could it make sense to live there part-time and rent it as an STR when I'm away, or is that usually more trouble than it's worth?
4. -With the 2026 FIFA World Cup coming to Dallas, would it make sense to hold and get it ready for that demand (June and July)?
5. -If you were in my shoes, would you sell now and redeploy capital elsewhere?
6. -Any recommendations for furnishing an STR on a tighter budget, or experience with renting furniture short-term to test the model first? I would need to furnish the entire home from scratch, minus kitchen items, a desk+chair, and kitchen table.
7. -How much weight would you give the lot/location value versus monthly cash flow here?

Open to honest feedback — thank you for the insights!