Is Richardson TX a good STR, mid term or long term rental?

[Patnaree Conrad]

I have a condo, 1 bedroom and 1.5 bathroom, 809 sqf. 1 floor with good size private back yard. I wonder what this property should be? STR, Mid term or Long term? Pls help

[Bruce Lynn]

Condos normally don't make good investments in Dallas area. The HOA dues just kill the returns. I've only seen about 5 buildings that typically work well as investment properties.

Typically STR is out. If your HOA doesn't prevent it now, then once you start they probably will change the bylaws to prevent it. You also have to look at city regulations for STR and see if they allow. Some do, some don't. Some want registration and taxes.

I haven't really seen MTR numbers work out in my opinion either. Lots of talk about this now, but when I look at the costs vs returns, then it doesn't look all that fun to me. You're paying utilities, HOA, furniture and all that for probably double the normal rent, but you have the huge risk of vacancy, which I would then think kills any bonus returns you're making. What if people rent for 3 months, then 1 month of vacancy? I really don't think you get back to back to back MTR rental with minimal vacancy. When I look at the forums like furnished finder, you see how for example travelling nurses are not interested in paying double the monthly rent, even if on the owner side it is certainly justified. I just tend to see lots of complaints that make them feel like they're getting taken advantage of, even if they are also on the receiving end of 3-4x the normal pay. Run the numbers and see if it works for you.

That leaves LTR probably.

Good luck and best wishes.