Last year I started my education on rental income and came across Rent to Retirement.

Just to make sure we’re both on the same page, I’m referring to the annualized total return that is included in the bigger pockets rental calculator — I wasn’t intending to compare RE to stocks, but maybe I’m missing something in your answer.  

Verifying last 2 years of rental history very important!

-------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

McKinney is thriving, but so are other parts of North Texas, and a broader perspective could reveal other great opportunities.Here’s what I’ve observed managing a significant number of rentals in the area:Bedrooms and Layouts:3-bed, 2-bath homes consistently attract the largest pool of tenants and have the highest occupancy rates.4-bedroom homes have grown in demand, especially with the rise of remote work, as tenants look for extra space to use as a home office.Square footage is less critical than number of beds and baths.Supply and Demand:McKinney’s growth is driving demand, but the quality of the location matters greatly.

I am currently living in rental apartment and, I am looking for best strategy for first investment.  

A couple of things I like to tell my newbies-Owning a short-term rental property can offer significant financial benefits.

If the sofa bed issue becomes a recurring theme, you could look into adding extra cushioning or replacing it with a more comfortable option, as some have suggested.For long-term stability and minimizing turnover, I’ve had great success with a hybrid co-hosting model—marketing listings to insurance and corporate partners for mid-term rentals.

Is it a flip or rental?