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Mid Term Rentals in Dallas?
Hello,
Looking for some advice please. We currently flip properties and have done 20 over the last couple of years. We are looking to diversify. We already have a short-term rental in the Outer Banks and we are thinking about setting a couple of mid-term rentals/short term rentals in Dallas. Is anyone else doing that here? If so, how's it going?
Also, are there any specific things I should be aware of such as overly tenant favoring laws in Dallas or Texas in general that will cause problems for us, such as if people stay there for 30 days or longer?
Thanks,
Josh
Hi Josh, I just sold 5 MTR's in Fort Worth and still own 3. While Dallas has its own set of rules and regulations, Fort Worth has been a great market for us. 30 night minimum stays are required in Fort Worth, but we haven't had any problem being 90% booked out in a given year.
Happy to provide more info if needed.
Also, I believe BiggerPockets is coming out or just came out with a book on MTRs.
#4 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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- Austin, TX
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#4 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
Obstacles you will have to overcome will be HOA and city permitting rules. Cities like Austin make it impossible to get your airbnb permit to operate
Hey @Josh H.!
Love the aspiration to get into a new asset class! MTRs are one of the best and most secure routes for anyone to go in this market in my opinion. I don't specialize in the Dallas area but I'm sure others do in these forums. My one recommendation even though I'm not from your area is to confirm all of the laws you need to be aware of with the counties/township/HOA's office. Generally, you can find this information online in their code of ordinances but sometimes it's easier just to give them a quick call.
Hope this helps! Don't hesitate to let me know if you need any more help!
-
Josh
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Real Estate Agent Pennsylvania (#RS364365 )
- 484-986-5012
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Hey @Josh H.
I would say that Dallas is very STR friendly. There are a lot of STRs in the Dallas downtown area. Do you have a location in mind that you are looking at in Dallas?
We live in Fort Worth and will start rehabbing a small 2bed 1 bath next year to turn it into a mid-term rental. It is in a great location, close to a major interstate, college, and the medical district.
Hope this helps. If you need more information please let me know.
Quote from @Eric Boshart:
Hi Josh, I just sold 5 MTR's in Fort Worth and still own 3. While Dallas has its own set of rules and regulations, Fort Worth has been a great market for us. 30 night minimum stays are required in Fort Worth, but we haven't had any problem being 90% booked out in a given year.
Happy to provide more info if needed.
Also, I believe BiggerPockets is coming out or just came out with a book on MTRs.
Hi Eric,
Thank you for replying. I'm curious, what made you sell of the five MTR's and keep three?
I already have that book on pre-order :) I ordered it right after listening to that biggerpockets podcast.
Best,
Josh
The market was really hot and we wanted to cash out. We bought them in 2020 and used the BRRRR strategy. The other three are our babies, and we want to hold onto them for as long as we can.
And that's great! It really makes a deal pencil that wouldn't otherwise from a cashflow perspective.
That makes sense, Eric. We also want to do the BRRRR method and have worked with hard money lenders before, so we are excited about doing some MTRs and know we have a good amount to learn. I will PM you tomorrow, if that is OK.
Quote from @Joshua Messinger:
Hey @Josh H.!
Love the aspiration to get into a new asset class! MTRs are one of the best and most secure routes for anyone to go in this market in my opinion. I don't specialize in the Dallas area but I'm sure others do in these forums. My one recommendation even though I'm not from your area is to confirm all of the laws you need to be aware of with the counties/township/HOA's office. Generally, you can find this information online in their code of ordinances but sometimes it's easier just to give them a quick call.
Hope this helps! Don't hesitate to let me know if you need any more help!
-
Josh
Hi Josh,
That is some great advice in you reply, thank you. I will be sure to call them, I'm never afraid to pick up the phone to call someone because you can find out a lot more quickly that way. Thank you for the advice.
Josh
Quote from @Joe Rivera:
Hey @Josh H.
I would say that Dallas is very STR friendly. There are a lot of STRs in the Dallas downtown area. Do you have a location in mind that you are looking at in Dallas?
We live in Fort Worth and will start rehabbing a small 2bed 1 bath next year to turn it into a mid-term rental. It is in a great location, close to a major interstate, college, and the medical district.
Hope this helps. If you need more information please let me know.
Good Afternoon Joe,
We are brand new to exploring the Dallas market, so I am definitely open to suggestions on locations. What you described seems perfect because we want to be close to the medical district. I will PM you.
Best,
Josh
#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
For the most part I have not seen restrictions on MTR....but I would say Dallas seems to be less than friendly to STR. Yes today no city imposed restrictions but Ive been to plenty of city gov type meetings and the officials are doing their best it seems to figure out how they want to restrict-tax- and regulate them...of course like many cities it has been a subject of discussion for a while.
While there is a lot of talk on the success of MTR...think about how much you can charge...what your expenses...and what your vacancy will be. I see a lot of vacancy and super low rates right now on Dallas STR. Is it realistic to have back to back to back occupancy. If you have 3 weeks or a month between tenants I think that can kill your returns. Lots of 1 night Saturday night rentals and rest of the week vacant.
Not sure if you are on the furnished finder group or not . But today say a lady post 1bed 1bath condo for $3000 month which to me is very fair...but the amount of hate she got was amazing.
Not trying to kill your dream....but from what I see numbers are not as great as you might think.
Hotel occupancy is still challenged here...so you have a fair amount of competition.
I've been on Furnished Finder for few years now, renting to traveling nurses. I can tell you in the last year+, tons of properties have come up for FtWorth area so there is much more competition than before. Many are vacant. And, I'm getting more calls from non-nurses. I don't track Dallas, but assume same.
Quote from @Josh H.:
Hello,
Looking for some advice please. We currently flip properties and have done 20 over the last couple of years. We are looking to diversify. We already have a short-term rental in the Outer Banks and we are thinking about setting a couple of mid-term rentals/short term rentals in Dallas. Is anyone else doing that here? If so, how's it going?
Also, are there any specific things I should be aware of such as overly tenant favoring laws in Dallas or Texas in general that will cause problems for us, such as if people stay there for 30 days or longer?
Thanks,
Josh
My MTR in Austin have been performing great! Haven't had any issues with tenant laws because the people that stay at MTR aren't the kind of tenant to stay past their lease. If you pay $4k/month for 4 months, you're going to want to get out of the place as soon as you can so you can stop paying.
Quote from @Eric Boshart:
Hi Josh, I just sold 5 MTR's in Fort Worth and still own 3. While Dallas has its own set of rules and regulations, Fort Worth has been a great market for us. 30 night minimum stays are required in Fort Worth, but we haven't had any problem being 90% booked out in a given year.
Happy to provide more info if needed.
Also, I believe BiggerPockets is coming out or just came out with a book on MTRs.
Hi Eric, would you mind if I contacted you about MTRs in Fort Worth?
Quote from @Leslie Bovaird:
Quote from @Eric Boshart:
Hi Josh, I just sold 5 MTR's in Fort Worth and still own 3. While Dallas has its own set of rules and regulations, Fort Worth has been a great market for us. 30 night minimum stays are required in Fort Worth, but we haven't had any problem being 90% booked out in a given year.
Happy to provide more info if needed.
Also, I believe BiggerPockets is coming out or just came out with a book on MTRs.
Hi Eric, would you mind if I contacted you about MTRs in Fort Worth?
Not at all, please do!