You can see much better cashflow especially in peak season with STRs, but location is very important if you want year round traffic, as our tourism market is pretty seasonal.

FOMO will work against impatient, fee driven companies who need deal churn to generate fees and make a living.

I'm looking for advice on what kind of carpet to replace with (high traffic / stain guard etc) and also where to buy it from.

I bet its the former...the impatience is there.  

I also looked at north Dallas, but decided that the area was inconvenient and not practical, as getting across there for issues would be difficult during work hours (and then there is the infamous traffic)@Sam ShuehSam, Property tripling in value is the very reason rental return is so bad.

Even though the owner may get upside down, as long as there's no red ink, he can just sit awaiting yet another RE cycle.If the owner becomes impatient or sick of RE and bails before the recovery, then MFs may be more affordable but will be scooped up just as they are today.

I think there used to be a bank on the bottom floor of that building. the traffic on that road can be heavy during rush hour. 

Putting some type of hardscaping in the high traffic areas can help. 

He still isn't getting traffic or offers. 

Hours are getting fewer and fewer every week and I make commission but as we all know you need traffic in a retail store to get commission.