This type of short-term loan can provide the funds needed to renovate the property.

First, Texas is one of the most landlord friendly states in terms of laws.

What are your loan terms?

I have a couple of investments and am about to jump into a Short term rental while still being a w-2 employee.

Out-of-state investing makes the most sense for me—it’s impossible to cash flow anywhere near me, and moving wouldn’t make sense because I wouldn’t be able to earn the same wages or find the same kind of jobs.Before this purchase, I already owned two properties: a long-term rental outside Houston, Texas, and a short-term rental in the Sierras in California.

If it was me, I'd look at it this way:1) Paperwork: I can hire an attorney at an hourly rate to write up a purchase contract, etc. 

If this were my property, I’d run a detailed rental analysis (from what I’ve read in Forbes) to see if the short term route could outpace traditional leasing.

Prior to last year, effectively any SFR was eligible for a short term rental license.

Signing the lease demonstrates they agree to the terms and then you can hold them accountable.If you don't do this, then the person named on the lease and paying the rent could disappear and you would have no legal authority to charge the remaining three for unpaid rent.

I have confirmed that, due to a lack of meeting of the minds which is required for a legal contract, there is in fact no contract.