Are there any investors or Realtors on this forum that either own or help investors buy properties to use as short term rentals? I have family in Dallas and Frisco and would like to purchase a "2nd home" to use when visiting family, but then rent out as a short term rental when we aren't using it. I'd love to connect and get some thoughts and advice! Here are a few questions and topics:
1) What is best location for short term rentals in Dallas? I'd most interested in Addison/Plano/Frisco since most of my family is in Frisco.
2) Is it seasonal? Or can you get renters all year long?
3) Are there any good short term prop management companies?
4) Are there any rules from the city and/or certain HOAs that won't allow it, or restrict it? EXAMPLE: do most condos around Dallas not allow short term rentals? Do they allow 30-day rentals for executives? I've heard rumors of Dallas possibly putting in some rules to shut down STRs (kinda like Denver). Is that true?
5) I'm torn between buying a condo/townhome that may be less expensive price point, but has HOA, verse a single family that wil be more expensive, but have extra maintenance and upkeep costs. Would love some thoughts/opinions on this one.
Thanks in advance!
Most of the communities with HOAs in the DFW metroplex do not allow short term rentals. Prime locations for short term rentals would be those areas with restaurants and entertainment within walking distance. North of Dallas you might consider something in the Shops at Legacy area. In Dallas, Uptown and the SMU community are very popular. DFW draws a lot of business travelers in need of short term rentals. We have seen the rates for short term rentals go up across the metroplex.
Best of Luck,
Most condos and townhomes do not allow short term rentals....and you have to have a backup plan for the ones that don't prohibit, that once you start, then they act to implement. I know of a couple of places that might work. One is TH community that is pretty laid back, and one condo in Oaklawn that has 30 day minimum rentals.
You have to look at both city restrictions and HOA restrictions. Probably most of your HOA type neighborhoods (think Frisco) will prohibit. Might work better outside of the city limits. Think weekend resort.
You also have to think about loan restrictions for the 2nd home idea. It really needs to be a second home, and not a rental property or you have the potential for loan fraud.....and you definitely don't want to be involved in that.
@Stuart Grazier I am about to complete, in 2-3 months a property that might be ideal for the short term rentals. Already spoken to a potential buyer that was thinking same thing. A 4 bed with 2 masters in old town frisco. It has a large yard with a fire pit and wrap around deck. House was built in 1902 and is one of the oldest in the town. One street back from the Main Street so super close to things short term renters would want, restaurants cafes etc. No HOA. Historical marker as it was the first mayor of Frisco house.
It will be completely rehabbed with high end finishes.
If your interested let me know.
@Nick Brown Sounds awesome! Would love to learn more about it. Can you PM me details?
@Rob Lee Thanks for the info!
@Bruce Lynn Thank you.
@Nick Brown I have always wondered why investors who want to remodel wait to buy a property until after they get an investor commitment for a STVR. That way you as a remodeler/flipper have a guaranteed profit as you negotiate a sales price before you buy.
@Stuart Grazier I would love to connect with you over a quick phone call. I currently have 4 short-term rentals and 5 in rehab phase all around DFW and Frisco/Plano is on my radar. Shoot me a PM and we can schedule a quick Zoom call.