Thus, they are appraised as such - valued based off the sales comp approach - i.e how much have other similar single family homes sold for?

That kind of shoot-from-the-hip approach can be fun for a minute, but it usually ends up like my old buddy Rick’s first deal.. he bought a distressed fourplex in Tucson years back without a real plan, and while he eventually turned it into a solid monthly cash flow, he spent the first six months sleeping with one eye on the tenant ledger, praying the HVAC wouldn’t bail on him after a hot desert day.

For average investors without large amounts of capital to deploy this is a common approach to growing a portfolio.

The November 2024 report from the Austin Board of REALTORS® shows stable housing prices in the Austin metro as we approach end of year.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Please assist me in exploring this approach. 

What are your thoughts on this approach?

What about drive approaches, parking lots, site lights, landscape, irrigation, etc.? 

That kind of restriction just doesn’t work for someone like me.I’m trying to figure out if I might be missing something in how I’m approaching this or if others have insights or examples of towns that not only allow STRs but also have laws that offer enough flexibility to operate in the way I’m aiming for.Many towns technically permit STRs but impose restrictive rules like membership requirements, ownership duration limits, or rental day caps, making operations challenging.

That may not be the best strategy given the cost of getting an MTR set up, so here is another approach.