Ramsha - most of the regulation for a STR is controlled by the neighborhood HOA.

Also most townhome developments are part of some sort of HOA and if there is an HOA they will definitely not allow you to form a condo within the bounds of their HOAFeel free to reach out if you have more questions!

The income from those two rooms paid the entire mortgage, HOA, and a a tiny bit of utilities. 

Quote from @Tenzing Palmo: Hello I’m looking for my first investment property in Dallas Texas, I live in nyc so I don’t The trick with new construction in many of the growth cities is that don't allow rentals in the HOAs or have super restrictions. 

There are some areas near Gatlinburg I would consider, but cities are just a large HOA which I do not trust over the longterm.

I just got off the phone with the HOA and they've reached their allowed limit for LTRs so it's looking like a flip deal.

There is a lot of push-back coming from HOAs in today's real estate market regarding ADUs.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

The only thing is the HOA fees go up and they can do special assessments and you have no control over it.

Unless its condo, co-op, or HOA you should be fine.