Hey @Eric Andersen, so there are a lot of regs in the DFW area.https://www.fortworthtexas.gov/short-term-rentalsRentals are not allowed in residential districts: A-#, AR, B, R1, R2, CR, C, D, UR.Dallas recently banned STRs in single family homes but there was an injunction that blocked it.

@Ella Marie the Pro's are you can build long term wealth, the Cons are you can lose money if you cannot properly quantify risk.

The combination of Germany's stable economy, well-regulated property market, relatively low interest rates, and the opportunity for long-term capital appreciation make it a compelling choice for U.S.

Sometimes a 5-10 unit DSCR loan is solid terms, but I'm quoting 7.4% ish for 5+ unit, DSCR.

Once you do this conversion you can't change it back to a traditional long-term rental. 

As we have all seen, Californians are leaving in droves over the past couple of years, and fleeing to Florida, Texas and yep...Arizona.As long as we continue to stay under LAs housing market for affordability, we are going to continue to net those homeowners wanting an upgrade to a bigger house or lot. 

But I see people turning long term or highly appreciated primaries in to rentals.

Outline a clear exit strategy to meet your long-term goal of retaining the property for cash flow.Work with a CPA to ensure tax efficiency, particularly around depreciation, capital gains, and partnership income.

You will both incur long term capital gains. 

I personally like the buy-and-hold strategy and we help clients who share this long-term, wealth building mindset.