Looking to invest in Dallas and suburbs for STR or LTR.

[Mora Clark]

Hi guys, I'm thinking of relocating to Dallas and buy a primary residence and do an Airbnb during the first year and maybe turn in into a full time STR or LTR when I move out. Whichever one is cash flowing. Will be financing up to $450k. Any recommendations where to start? Investor friend agents? Thanks :)

[Ryan Blake]

@Garrett Gruss and @Mora Clark Most cities in N Texas are implementing regulations, especially the larger ones. Like @Bruce Lynn said, you will need to do your homework. Some mid to small sized cities are not currently strict in their regulations because they don't want to foot the bill of litigation. Both AirBnB and VRBO are funding legal battles every time a city tries to enforce STR regulations. Some cities just don't have the funds to compete. This is what happened in the suburb of Grapevine and why STRs are regulated but are allowed in the city.

But more importantly, both of you are looking at a House Hacking situation. If you live the in the property as your primary residence, MOST of the cities' regulations don't apply. This has been upheld in courts across the country. If you were not to be able to do an STR in a home in which you live in, then that would leave some issues for people who have friends come to spend the weekend and buy them dinner or help pay for some utilities. Would that then constitute an STR because they stayed with you and you recieved payment in one form or another? This is why courts have had to allow STRs in residences where the owner resides in the home. Most regulation is for whole home STRs where the owner does not live in that house.