Midterm Rentals in Dallas-Fort Worth

Dallas, Texas
Medium-Term Rentals
3yFollow

Midterm Rentals in Dallas-Fort Worth

Mo Karim
Real Estate Agent 路 Dallas, TX 路 Member since 2020 路 164 posts 路 80 votes

With every increasing regulations on short term rentals, midterm rentals is becoming more popular with investors. 

What has been your experience with midterm rentals in DFW?

Do you manage it yourself or hire a PM?

0Reply
258 views

Most Popular Reply

Denver McClurePro Member
Financial Advisor 路 Flower Mound, TX 路 Member since 2018 路 661 posts 路 480 votes
3y

Hey @Mo Karim, I've had a very positive experience operating a MTR in Dallas. I converted my STR back in December to avoid the newly increased Hotel Occupancy Tax (9% monthly) and to cut out my STR PM (10%/monthly). I used furnished finder and keycheck to find tenants, screen them, and collect rent/security deposits.

I now have a 6-month lease signed with a tenant, am avoiding higher vacancy during this recessionary period, cut out 19% of expenses, and have far less headaches. I strongly recommend flexing into the MTR strategy, especially if you already have a furnished STR ready to go.
 

[email protected]
6Reply
See this reply in the discussion

22 Replies

Jump to latestLatest
  • Denver McClurePro Member
    Financial Advisor 路 Flower Mound, TX 路 Member since 2018 路 661 posts 路 480 votes
    3y

    Hey @Mo Karim, I've had a very positive experience operating a MTR in Dallas. I converted my STR back in December to avoid the newly increased Hotel Occupancy Tax (9% monthly) and to cut out my STR PM (10%/monthly). I used furnished finder and keycheck to find tenants, screen them, and collect rent/security deposits.

    I now have a 6-month lease signed with a tenant, am avoiding higher vacancy during this recessionary period, cut out 19% of expenses, and have far less headaches. I strongly recommend flexing into the MTR strategy, especially if you already have a furnished STR ready to go.
     

    [email protected]
    6Reply
    • NA A Hovey
      Member since 2025 路 1 post 路 0 votes
      1y
      Quote from @Denver McClure:

      Hey @Mo Karim, I've had a very positive experience operating a MTR in Dallas. I converted my STR back in December to avoid the newly increased Hotel Occupancy Tax (9% monthly) and to cut out my STR PM (10%/monthly). I used furnished finder and keycheck to find tenants, screen them, and collect rent/security deposits.

      I now have a 6-month lease signed with a tenant, am avoiding higher vacancy during this recessionary period, cut out 19% of expenses, and have far less headaches. I strongly recommend flexing into the MTR strategy, especially if you already have a furnished STR ready to go.
       

      How many bedrooms do you have and what has your vacancy rate been like? 

      Did you only post on FurnishedFinder or did you use other platforms?

      0Reply
    • Denver McClurePro Member
      Financial Advisor 路 Flower Mound, TX 路 Member since 2018 路 661 posts 路 480 votes
      1y
      Quote from @NA A Hovey:
      Quote from @Denver McClure:

      Hey @Mo Karim, I've had a very positive experience operating a MTR in Dallas. I converted my STR back in December to avoid the newly increased Hotel Occupancy Tax (9% monthly) and to cut out my STR PM (10%/monthly). I used furnished finder and keycheck to find tenants, screen them, and collect rent/security deposits.

      I now have a 6-month lease signed with a tenant, am avoiding higher vacancy during this recessionary period, cut out 19% of expenses, and have far less headaches. I strongly recommend flexing into the MTR strategy, especially if you already have a furnished STR ready to go.
       

      How many bedrooms do you have and what has your vacancy rate been like? 

      Did you only post on FurnishedFinder or did you use other platforms?

       Hey @NA A Hovey, my MTRs in Dallas 1 and 2 bedrooms. Vacancy rate is actually less than 2% in 2025, and 3% in 2024. That's because I actively list the unit on FF while a tenant is already in there. So, that vacancy time comes during the 1 week gap I schedule after a move out to do make ready cleaning and repairs. I also run my 4 bed lakehouse on FF and have done VERY will with that strategy during the offseason. Only listing on FF as I don't have to worry about fees on my side or the guest's side with Airbnb or other platforms. Just use a quality lease and set them up in Baselane or something similar for rent collection and tenant screening.

      [email protected]
      1Reply
  • Mo Karim
    OP
    Real Estate Agent 路 Dallas, TX 路 Member since 2020 路 164 posts 路 80 votes
    3y

    Good for you @Denver McClure! I think the trend will continue towards MTRs in the future around DFW.

    0Reply
  • James Carlson
    Real Estate Agent 路 Colorado | stan.store/JamesCarlson 路 Member since 2014 路 2k+ posts 路 2k+ votes
    3y

    We're not in Dallas, but we converted our STRs into midterm rentals years ago in Denver and Colorado Springs. Not as much money as Airbnb or STRs but less work than STRs and more money than LTRs, and as someone said, if you've already got it furnished, it's an easy transition.

    Also, anyone interested, might check out "Erin's Guide to Midterm Rentals." It's got a bunch of tips and checklists on how to get an MTR up and running. 

    2Reply
  • Amy Van Slambrook
    Investor 路 Dallas, TX 路 Member since 2023 路 2 posts 路 3 votes
    3y

    @Denver McClure congratulations!  would love to connect more about your MTR experience.  I'm looking at a couple of potential properties in Frisco and want to dive into the areas of Dallas near where I am (Preston Hollow).  Finding information on regulations and community stipulations seems to be sporadic.  

    1Reply
  • Jennifer Volek
    Real Estate Agent 路 Arlington, TX 路 Member since 2016 路 151 posts 路 54 votes
    3y

    Hey! I did MTR in Arlington and I manage them myself. I also manage my LTR. Let me know if you need any help!

    3Reply
  • Jennipher Jess
    Investor 路 Dallas, TX 路 Member since 2023 路 10 posts 路 5 votes
    3y
    Quote from @Jennifer Volek:

    Hey! I did MTR in Arlington and I manage them myself. I also manage my LTR. Let me know if you need any help!

    Hello Jennifer,

    I saw your post and had some questions if you're willing to guide a newbie :)

    We just closed on our first investment property and the numbers for rental rates dropped in the Mesquite area since we put our deposit down. It is a new construction townhome in Iron Horse Village. That said, I am unsure how to even get started in doing this and any tips would be massively appreciated.
    1Reply
  • Zach Edelman
    Lender 路 New York, NY 路 Member since 2022 路 1k+ posts 路 1k+ votes
    3y

    This aged well. STRs are now banned in DTX. @Mo Karim did you end up making an MTR play?

    0Reply
  • Mo Karim
    OP
    Real Estate Agent 路 Dallas, TX 路 Member since 2020 路 164 posts 路 80 votes
    3y

    @Zach Edelman - No. I'm sticking to what I know during this economy, which is LTRs.

    0Reply
  • Mo Karim
    OP
    Real Estate Agent 路 Dallas, TX 路 Member since 2020 路 164 posts 路 80 votes
    3y

    NYC just banned STRs almost completely

    0Reply
  • S. E. Daniels
    Member since 2023 路 1 post 路 0 votes
    3y
    Quote from @Jennifer Volek:

    Hey! I did MTR in Arlington and I manage them myself. I also manage my LTR. Let me know if you need any help!


     Hello, I'm considering turning my property into a MTR in Arlington. What are some proposed rental rates 1.5x or 2x the rent rates?

    0Reply
  • Jennifer Volek
    Real Estate Agent 路 Arlington, TX 路 Member since 2016 路 151 posts 路 54 votes
    3y

    yes the MTR rates are 1.5-2x rent. Check out Airbnb for the most accurate rates

    3Reply
  • Adrian Vann
    Investor 路 Dallas, TX 路 Member since 2016 路 9 posts 路 5 votes
    3y

    Picking this one back up: Dallas has restricted most short term rentals except for in certain areas as of this past summer. City of Dallas Short-Term Rentals code How is that impacting MTR in Dallas? Are you finding MTR to be increasingly competitive? 

    I have a 3/2.5 in Old Lake Highlands near White Rock Lake (~1 mile) that my family and I are living in as a primary residence, but I have been thinking about house hacking into another house and then doing a MTR on this 3/2.5. The house is valued at $745k or so, and we have about $300K equity in the home.  I'm trying to figure out if I can get the consistency in MTR for the price I need to cover the mortgage.  Doing a LTR would likely be a negative cash flow.  I'd like to keep the house for long-term appreciation since it's in a good school district and has low crime. Would welcome anyone's thoughts!

    1Reply
  • Aaron BreckenridgePro Member
    Technology 路 Dallas, TX 路 Member since 2022 路 496 posts 路 314 votes
    3y
    Quote from @Adrian Vann:

    Picking this one back up: Dallas has restricted most short term rentals except for in certain areas as of this past summer. City of Dallas Short-Term Rentals code How is that impacting MTR in Dallas? Are you finding MTR to be increasingly competitive? 

    I have a 3/2.5 in Old Lake Highlands near White Rock Lake (~1 mile) that my family and I are living in as a primary residence, but I have been thinking about house hacking into another house and then doing a MTR on this 3/2.5. The house is valued at $745k or so, and we have about $300K equity in the home.  I'm trying to figure out if I can get the consistency in MTR for the price I need to cover the mortgage.  Doing a LTR would likely be a negative cash flow.  I'd like to keep the house for long-term appreciation since it's in a good school district and has low crime. Would welcome anyone's thoughts!

    @Adrian Vann why do you think the cashflow would be negative for an LTR in that neighborhood? I'm just north of the lake, thinking of doing the same, have about the same equity, and my estimates ($3500/mo) seem to cashflow a couple hundred a month. Only 2.14% CoC return though 馃槥

    BiggerPockets
    1Reply
  • Mo Karim
    OP
    Real Estate Agent 路 Dallas, TX 路 Member since 2020 路 164 posts 路 80 votes
    3y
    Quote from @Adrian Vann:

    Picking this one back up: Dallas has restricted most short term rentals except for in certain areas as of this past summer. City of Dallas Short-Term Rentals code How is that impacting MTR in Dallas? Are you finding MTR to be increasingly competitive? 

    I have a 3/2.5 in Old Lake Highlands near White Rock Lake (~1 mile) that my family and I are living in as a primary residence, but I have been thinking about house hacking into another house and then doing a MTR on this 3/2.5. The house is valued at $745k or so, and we have about $300K equity in the home.  I'm trying to figure out if I can get the consistency in MTR for the price I need to cover the mortgage.  Doing a LTR would likely be a negative cash flow.  I'd like to keep the house for long-term appreciation since it's in a good school district and has low crime. Would welcome anyone's thoughts!

     @Adrian Vann I used to live in OLH and sold a property on the next street over to an investor (on Peninsula). It鈥檚 a great neighborhood! Will be the new Lakewood. I鈥檇 buy there as much as I can comfortably afford regardless of MTR strategy. I still look there for tear downs for new builds. 

    1Reply
  • Adrian Vann
    Investor 路 Dallas, TX 路 Member since 2016 路 9 posts 路 5 votes
    3y
    Quote from @Aaron Breckenridge:
    Quote from @Adrian Vann:

    Picking this one back up: Dallas has restricted most short term rentals except for in certain areas as of this past summer. City of Dallas Short-Term Rentals code How is that impacting MTR in Dallas? Are you finding MTR to be increasingly competitive? 

    I have a 3/2.5 in Old Lake Highlands near White Rock Lake (~1 mile) that my family and I are living in as a primary residence, but I have been thinking about house hacking into another house and then doing a MTR on this 3/2.5. The house is valued at $745k or so, and we have about $300K equity in the home.  I'm trying to figure out if I can get the consistency in MTR for the price I need to cover the mortgage.  Doing a LTR would likely be a negative cash flow.  I'd like to keep the house for long-term appreciation since it's in a good school district and has low crime. Would welcome anyone's thoughts!

    @Adrian Vann why do you think the cashflow would be negative for an LTR in that neighborhood? I'm just north of the lake, thinking of doing the same, have about the same equity, and my estimates ($3500/mo) seem to cashflow a couple hundred a month. Only 2.14% CoC return though 馃槥


    My all in is about $4,100 which includes $180 required flood insurance. If it became a rental, this would go up due to losing the homestead. It鈥檚 possible I could get closer to $4,000 in LTR rent but a real estate agent ran comps and reported it might be a stretch / bring higher DOM.

    That being said, if I can truly get 1.5-2x on average with on MTR, I鈥檓 sold in a heart beat. My wife is an artist /interior decorator too and makes beautiful spaces on a budget, so would kill it with MTR, I think. 

    2Reply
  • Adrian Vann
    Investor 路 Dallas, TX 路 Member since 2016 路 9 posts 路 5 votes
    3y
    Quote from @Mo Karim:
    Quote from @Adrian Vann:

    Picking this one back up: Dallas has restricted most short term rentals except for in certain areas as of this past summer. City of Dallas Short-Term Rentals code How is that impacting MTR in Dallas? Are you finding MTR to be increasingly competitive? 

    I have a 3/2.5 in Old Lake Highlands near White Rock Lake (~1 mile) that my family and I are living in as a primary residence, but I have been thinking about house hacking into another house and then doing a MTR on this 3/2.5. The house is valued at $745k or so, and we have about $300K equity in the home.  I'm trying to figure out if I can get the consistency in MTR for the price I need to cover the mortgage.  Doing a LTR would likely be a negative cash flow.  I'd like to keep the house for long-term appreciation since it's in a good school district and has low crime. Would welcome anyone's thoughts!

     @Adrian Vann I used to live in OLH and sold a property on the next street over to an investor (on Peninsula). It鈥檚 a great neighborhood! Will be the new Lakewood. I鈥檇 buy there as much as I can comfortably afford regardless of MTR strategy. I still look there for tear downs for new builds. 

    Thanks for the encouragement. I'm just trying to figure out how to buy the NEXT one. :)

    As I comp my 3/2.5 primary residence on FurnishedFinder and Airbnb, I saw a lot of availability around White Rock Lake, which does concern me somewhat as I would need to cover the first mortgage with rental income.  Most are in less desirable neighborhoods / are less updated, but some are on par if not better. Any thoughts there?

    0Reply
  • Mo Karim
    OP
    Real Estate Agent 路 Dallas, TX 路 Member since 2020 路 164 posts 路 80 votes
    3y

    @Adrian Vann yes the market is flooded with MTRs. This is a result of STRs being regulated in Dallas. You may want to look at sober living facility as another option and dive into those numbers. LTRs always an option too if you can get a good deal. I'd go walk any homes in that neighborhood priced under 500K with at least room for 3bdrms.

    2Reply
  • Sylvia Santelli
    Property Manager 路 Dallas, TX 路 Member since 2015 路 61 posts 路 35 votes
    1y
    Quote from @Mo Karim:

    With every increasing regulations on short term rentals, midterm rentals is becoming more popular with investors. 

    What has been your experience with midterm rentals in DFW?

    Do you manage it yourself or hire a PM?


     I manage MTRs in Dallas and it's a GREAT market for MTR. It always comes down to neighborhood, but Dallas is still a major metro with lots of companies moving here. There is a lot of expansion still. I co-host properties in DFW and could help answer any questions. Send me a message if you still do.

    0Reply
  • Zachary DealPro Member
    Lender 路 Member since 2023 路 465 posts 路 425 votes
    1y

    I think it's a mixed bag. A lot of MTR investors use PMs but a lot also self manage as it is not nearly as time consuming as an STR. I could be wrong but I think that is reflected in PM pricing (middle ground rate between an LTR management fee and STR management fee).

    [email protected]
    1Reply
  • Account Closed
    Investor 路 Toledo-MetroDetroit-Dallas 路 Member since 2022 路 122 posts 路 71 votes
    1y
    Quote from @Mo Karim:

    With every increasing regulations on short term rentals, midterm rentals is becoming more popular with investors. 

    What has been your experience with midterm rentals in DFW?

    Do you manage it yourself or hire a PM?

    Late to the party I know, but I have considered converting a 1 bed condo into a MTR on Furnished Finder. I looked at comps to see what similiar units were going for and honestly the numbers weren't too enticing. Given I'd have to pay for electricity, WiFi, HOA, taxes, furniture, repairs , etc. the upside didn't seem worth it. I'm thinking the MTR/STR market is saturated here? Maybe if it was scaled to more units it would make more sense financially.

    Happy to hear others' thoughts and open to collaborating on MTRs if anyone is interested in Dallas.

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free