Not real property so they will base it on the land and improvements.

There's no one (theoretically) living on the parcel--no improvements that would allow someone to make the parcel their residence.

I agree with @Brandon Rizzo I think the supply will normalize as the migration to Texas has not slowed down and as builders make correction to a more balanced supply and demand (along with interest rate improvement) housing market will be better.

Trying to improve my knowledge in finding a sweet spots for my investment.

Are there ways to add value through renovations, additions, improved management?

Able to improve vacancy rates.

Most lenders would like to see at least 90 days and improvements made to property since purchase to use new value.

Our market is unlikely to produce outstanding cash flow with the use of a PM and if you are self managing, your cash flow equates to earnings for your efforts.I am hopeful that the high interest rates have had a negative impact on income and that the STR income will improve if rates decrease.  

Look for areas with strong rental demand, low vacancy rates, and proximity to schools, employment centers, and amenities.Future Growth: Check for signs of future development, such as new businesses, infrastructure improvements, or public transportation.

I’ve also included things like tubs, sinks, and other items that might need replacing.I’m focused on improving my ability to assess repairs.