All Forum Posts by: Seth Teel

@Arezou Ed

There are several good cities and towns within 2 hours of Austin to host a short-term rental. You'll need to determine if you want a property in a more rural or urbans setting. If you chose a city/town like San Antonio, New Braunfels, or San Marcos you can the benefits of density, infrastructure, local sights & attractions, etc. If you choose to locate in a more ex-urban or rural setting, like Blanco, Wimberly, Johnson City, Stonewall, or anywhere in the Hill Country, you'll have less access to grocery stores, restaurants, etc, but will have privacy gorgeous views and still easy access to Austin or San Antonio. Keep in mind some cities have STR ordinances (Austin, San Antonio, New Braunfels). Austin and New Braunfels STR ordinances are very restrictive and may be an uphill battle just to get an STR permit. San Antonio's ordinance is much less restrictive than the other two, but it's not without issue. If you have any questions, feel free to shoot me a DM.

Hey Y'all,
We will be hosting our next MeetUp Wednesday 6/14/23, 6pm - 9pm @ Joey's (2417 N St Mary's St, San Antonio, TX 78212).
So, if you're an investor, agent, contractor, lender, or just interested in learning more about real estate investing, please join us.

This will be a casual happy hour style event.
All are welcome.

There is no cost to attend.
We hope to see you there.

FB Event Page Link: https://fb.me/e/2EN0bLemo

See y'all tomorrow Wednesday 5/10, 6pm @ Joey's!

Hey Y'all,
We will be hosting our next MeetUp Wednesday 5/10/23, 6pm-8pm @ Joey's (2417 N St Mary's St, San Antonio, TX 78212).
So, if you're an investor, agent, contractor, lender, or just interested in learning more about real estate investing, please join us.

This will be a casual happy hour style event.
All are welcome.

There is no cost to attend.
We hope to see you there.

FB Event Page Link: https://fb.me/e/Q3gUAZyc

*** REMINDER ***

Our No Pitch REI Meetup is tomorrow
Wednesday 4/12/23, 6pm-8pm @ Joey's (2417 N St Mary's St, San Antonio, TX 78212).

We hope to see you there!

Hey Y'all,
We will be hosting our next MeetUp Wednesday 4/12/23, 6pm-8pm @ Joey's (2417 N St Mary's St, San Antonio, TX 78212).
So, if you're an investor, agent, contractor, lender, or just interested in learning more about real estate investing, please join us.

This will be a casual happy hour style event.
All are welcome.
There is no cost to attend.
We hope to see you there.

FB Event Page Link: https://fb.me/e/2u9rcGZgl

Feel free to send me a DM.  I sat on the Zoning Board of Adjustment for 6 years, and am quite familiar with the city's processes, zoning, and unified development code (UDC). 

This depends on several items, but mainly is predicated by two things: your type of financing and the area you want to live. If you're going to be using a conforming loan (FHA, Conventional, VA, etc) then you will be limited to 1-4 family structures. Most of the true small 2-4 unit buildings are located within the urban core, however there are pockets throughout the inner-ring and suburbs that have small multi-family developments.

Next you will want to look at the base zoning for the area: RM-4, RM-6, & MF-33 are the most common zoning classes that allow for multi-family buildings (including ADUs). There are several IDZ zoning classes that can be applied to properties to allow for increased density, relaxed setbacks, and multiple units.  Assuming you're looking for an existing building and not planning to build new, zoning is extremely important. Purchasing a multi-family building or a property with multiple detached units without the proper zoning may keep you from obtaining your loan due to underwriters taking issue with "non-conforming use."  I have seen this happen both on new purchases and refinances.  Aside from re-zoning the property (which is expensive), the city does allow for a conditional use permit, but you have to apply for it annually and there are other requirements. Usually a conditional use permit is enough to satiate the loan requirements. 

R-4, R-6 and other zoning will allow for an ADU as long as it's owner occupied. Should you move from the property or move your homestead exemption to another property any ADU automatically reverts to an "Accessory Structure;" which does not allow for living quarters. It would seem this would be difficult for the City to enforce this, but I have definitely seen it happen- and keep in mind, jamming up residents is just another way for them to generate revenue.

My suggestion would be to find a good agent that understands the nuances of zoning relative to your desired property/strategy.  It's been my experience that most realtors in San Antonio have no clue about zoning, and/or zoning requirements as they apply to property/ land use; this includes understanding how the Short Term Rental Ordinance applies.

Best of luck with your search. 

@Naz Hossain

This was a test case that went all the way to the Texas Supreme Court. The ruling creates case law which can be applied to other cases regarding any HOA in Texas. Basically, this rolling says in the State Texas HOA restrictions regarding STRs are not applicable as long as the renters and lessor are using the property for a "residential purpose." Which is mentioned in the article and defined in the ruling.

In 2018 the Texas Supreme Court ruled on the side of Short-Term Rentals and their owners stating that HOA deed restrictions banning STRs did not apply as long as it was a "residential purpose" for the the short-term renters:

“So long as the occupants to whom Tarr rents his single-family residence use the home for a ‘residential purpose,’ no matter how short-lived, neither their on-property use nor Tarr’s off- property use violates the restrictive covenants in the Timberwood deeds,”

For more detail on the case and how it applies to HOAs across the state, here's the link:
Texas Supreme Court sides with short-term renters, likely bolstering state's fight against Austin's ordinance.

Keep in mind Cities still have the right to regulate and tax STRs.