Areas for good Short Term Rentals (Dallas, Arlington: real estate market, leasing, HOA)

[WhyAmI]

What are good areas in Dallas for short term rentals? As a first time investor, is it wise to go for STR or LTR single family? The 1% rule doesn't hold in Dallas metro these days with high inflated house pricing. Looking to get the wisdom of crowds on this forum for guidance

[numbersguy100]

Originally Posted by WhyAmI

What are good areas in Dallas for short term rentals? As a first time investor, is it wise to go for STR or LTR single family? The 1% rule doesn't hold in Dallas metro these days with high inflated house pricing. Looking to get the wisdom of crowds on this forum for guidance

Please don’t do this. Buy an index fund or something if you want to invest.

[WorldKlas]

As a long time residential property investor, I advise you this is not a good time to obtain a property. Just. Wait. Also, please consider that many municipalities are moving toward limiting the amounts of short term non-commercial rentals allowed and many, many, many HOA’s forbid them.

[WorldKlas]

https://www.2ndaddress.com/research/...m-rental-laws/

this link notes some of the cities with short term rental laws in 2020. I know since that time many more cities have imposed regulations. Example: not noted in the article above, Las Vegas neighbor Henderson requires licenses and limits amount of licenses they sell. The practice of cities issuing limited numbers of licenses leads to corruption and under the table dealings to get them, which puts a dent in profitability.

Not to mention HOA’s. Three HOA’s where I own properties in the DFW area strictly forbid leasing short term rentals (one min 12-month lease, others min 6-month lease) and my HOA in Las Vegas area min 12-month lease. More and more HOA’s are moving in that direction. So if you decide to move forward you’ll need to find a place that either has no HOA or allows short term rentals.

[ChristieP]

Not Arlington and not Grapevine. Cities here are really starting to crack down on short-term rentals, and many have prohibited them or made them heavily regulated. I agree that this real estate market is too hot to logically buy an investment property.

[fleaflicker]

Simply "buy low, sell high" concept. Stocks have been recently hammered. Property values are currently all time high.

I agree this is not good time property, especially for first time investor.
I also agree to buy an index fund instead.

[WhyAmI]

Got it. That seems to be the general recommendation from what I can tell.
What about long term rental areas once the market corrects.
Little Elm, Anna, mckinney, Melissa? Any thoughts on those or any other areas that your recommend that I haven't considered?

[WhyAmI]

Am concerned about keeping cash in an inflationary environment
Was thinking of real estate but like you pointed out, wait for correction.
During that time, any other asset classes that you recommend?

[numbersguy100]

Real estate isn't necessarily a bad investment, but you need to be far more serious about it than asking strangers on the internet what they recommend. That was my point. If you want something that is likely to earn a return with little to no real effort on your part, buy an index fund that exposes you to the market. It is as likely as anything else to protect you from inflation (although there's no perfect inflation hedge) over the longer term. You can even buy financial assets with leverage like you can real estate, although I also don't recommend doing so without research/learning.

[ChristieP]

Originally Posted by WhyAmI

Got it. That seems to be the general recommendation from what I can tell.
What about long term rental areas once the market corrects.
Little Elm, Anna, mckinney, Melissa? Any thoughts on those or any other areas that your recommend that I haven't considered?

All of those areas are on the outer edge of the DFW metro and of zero interest to tourists. I doubt you’d have much internet in a short-term rental in those areas.