Lakes Near Dallas
I am looking into purchasing my first STR. I live in Dallas and I would like it to be within 2 hours from where I live since it is my first STR and I want to be a little more hands on as I learn the business. I am thinking about lake houses as a potential entrance point. Does any one have any thoughts regarding the various lakes in the area (cedar creek reservoir, lake ray hubbard, lake lewisville, ect.)?
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Your best returns on STRs are typically going to be finding the intersection of a place where a lot of people go that does not have a high second home demand. There are too many rich people in TX that can spend $1-2M on a lake house and let it sit empty for 330 days a year. That 2nd home demand is going to drive up prices to the point that it squeezes out the returns that I believe make it worth the stress, hassle, money and time to set up and manage a short term rental.
If you want a lake house that rents a little to subsidize your payments, that's a different story. If, however, you want a proper, full time short term rental investment, lakes in Texas are going to be tough.
If you insist on being within driving distance, I'd recommend a hybrid short term and mid term property in a secondary Texas market (San Marcos, New Braunfels, Waco, Bryan/College Station, Lubbock, etc.). Something like a college town that has small to medium sized med center/hospital...you can toggle back and forth between short and midterm based on seasonal demand. Think a short term rental in Lubbock or Bryan/College Station, for example, during football season that would be a mid term rental in the offseason. I'm spit balling a little there - I'm not familiar with those markets and the economics, but it's a lower price point to enter the market, and a lower risk play for your first short term rental.