Vacation rentals make up less than 3% of all rentals, but seem to take all the blame for our housing shortages.

In 2021 there was a major shortage so anything was renting. 

Is there a shortage of housing in the area?

If you’re looking to purchase a home and use it at a long term rental until you retire, this is definitely a good market with the direction of rent $ and shortage of homes available to renters. 

While I have enough capital to complete this initial project, I lack the funds for subsequent developments.As I build equity with this first property, but face a shortage of capital for future endeavors, I'm considering my options with the bank.

We have an overall housing shortage, and it’s in the multi-millions.Issue Spotlight: Available Land is Still Hard to Come ByNot often talked about, but this really matters.

TH here typically appreciated much slower than SFR (even a 2010TH vs 1965SFR) due to the severe land shortage.

@Brian Dickerson As you mentioned, there are other threads here that discuss this topic more thoroughly but the consensus seems to be that landlords will generally be able to take the 20% QBI deduction.Court cases support landlords with as little as one property as operating a "trade or business" (TB), even if they hire a PM.The gist of it is that you have to work at the "business" regularly and continuously - executing deals, finding tenants, maintaining the property, or managing a PM who does certain tasks for you.I'm sure at some point in the (hopefully near) future, we'll receive further guidance with respect to determining if rentals are a TB or not, seeing as the determination has major tax implications for landlords...and there's no shortage of landlords.

If lived all over Dumas, San Angelo, Hondo, Odessa, Houston area (Sugarland area and around Fort Hood.The only part of Texas I haven't been to is down South by the border line McAllen Texas.I think the issue with investing in West Texas is that there is not much of a shortage of land and the population is not very dense so that brings another set of concerns for me.I'm much more aligned with a lot of Texas' economic policies but I'm not as bullish as some others on the next few decades there.Also, it is sooo hot 🔥 the hottest I've ever been in my life has been Texas and I lived in Honduras for two years so I think I have a good point of reference.

There are a ton of helpful people here on BP so you'll have no shortage of opportunities to learn from experienced folks.