Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Short-Term & Vacation Rental Discussions
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 1 year ago, 04/29/2023

User Stats

1
Posts
0
Votes
Anthony Martinez
  • Real Estate Agent
  • Dallas, TX
0
Votes |
1
Posts

Rental Arbitrage – Dallas TX

Anthony Martinez
  • Real Estate Agent
  • Dallas, TX
Posted

Good evening!

I have been a realtor in Florida for about four years, but I am moving to Dallas, Texas, in about a month – thus, I am new to the Texas real estate market. 

I wanted to jump on BiggerPockets to see if anyone in the Dallas area is in the Airbnb field of Real Estate. If so, which areas generally allow for short-term rentals, and most importantly, which areas in and around Dallas do you find most rewarding? 


I appreciate any feedback, as it would be beneficial! I appreciate any help you can provide. 

User Stats

1,266
Posts
746
Votes
Brooklyn McCarty
Pro Member
  • Investor
746
Votes |
1,266
Posts
Brooklyn McCarty
Pro Member
  • Investor
Replied

No experience with this area. 

However, typically a quick Google search can help. And also searching the OTA’s can give you an idea for the number of homes, how they perform, key amenities, etc 

  • Brooklyn McCarty
  • User Stats

    4,891
    Posts
    4,263
    Votes
    Bruce Lynn#2 Real Estate Agent Contributor
    • Real Estate Broker
    • Coppell, TX
    4,263
    Votes |
    4,891
    Posts
    Bruce Lynn#2 Real Estate Agent Contributor
    • Real Estate Broker
    • Coppell, TX
    Replied

    Welcome to Texas.

    Lots of the bigger cities have either pretty strict regulations or are considering implementing regulations, depending on what you have. Arlington for example allows STR in a very small designated area near the stadiums. Fort Worth stand alone STR only in commercial areas. Dallas is still debating regulations as they have for several years, but seem to be getting closer to implementing regulations which they say would eliminate 95% of the STRs. Plano is trying to crack down. Probably almost any city like Frisco where almost every home is in an HOA likely prohibits STR. https://www.fox4news.com/news/...

    I would say arbitrage is pretty tough as most apartments will not allow subleases and will figure out pretty quickly what you are doing and shut you down is my guess. There may be some arbitrage here, but I don't think it is extensive. Maybe on smaller self managed properties might be better where the owner knows and agrees with what you want to do. Not sure if they would want to talk to you or not, but maybe if there is new construction apts in lease up, so if you hit them with the right proposal, maybe sharing the profits, they might be more open to it. We're syndicator central here, so you might go to some of the meetings or conferences and make your elevator pitch. One trick today might be knowing about commercial multi-family loan covenants and if they allow STR or what % in the building. No good operator or PM company wants to violate those in today's lending environment.

    With all that said, I'd probably look at the smaller cities around DFW if you think there is a good demand driver for the business.   Maybe Sherman or Denison.  Maybe Van Alstyne, Denton, Howe, Princeton, Waxahatchie.  Not sure those are good markets, but less regulation potentially.

    CLOSED Title logo
    CLOSED Title
    |
    Sponsored
    CLOSED Title is the Investor Friendly Title Company CLOSED Title, founded by real estate investors. Double closings, assignments, we do it all.

    User Stats

    164
    Posts
    80
    Votes
    Mo Karim
    • Real Estate Agent
    • Dallas, TX
    80
    Votes |
    164
    Posts
    Mo Karim
    • Real Estate Agent
    • Dallas, TX
    Replied

    @Anthony Martinez I'd look at midterm rentals as an alternate option. Like Bruce said, STRs are becoming highly regulated.

    User Stats

    7,661
    Posts
    6,191
    Votes
    Michael Baum
    Pro Member
    #1 Short-Term & Vacation Rental Discussions Contributor
    • Olympia, WA
    6,191
    Votes |
    7,661
    Posts
    Michael Baum
    Pro Member
    #1 Short-Term & Vacation Rental Discussions Contributor
    • Olympia, WA
    Replied

    Hey @Anthony Martinez, you might want to take some time and do a search on arbitrage to get the low down.