Charles Schwab says the stock market returns are expected to be 6.3% annually for the next 10 years, so 7% is e-z money for them. 

The new law puts a 7% + inflation cap for three years on annual rental increases.

We own in a NC mountain community (Wolf Laurel if you want to google it) and it has higher HOA as well, but we love it and our STR has done great! 

If I incur capex down the road, the rent would be higher too.....Then you are talking about quality tenant, some Google employee making $220K annually....He set up ACH from day 1 and I have yet to hear from him since then.....Again, this is all to say why need to go OOS?

Plus, new rental registration laws with lead based paint abatement requirements could eat up your annual profit. 

Debt free except primary mortgage and a rec property ( i am renting it, 50% of annual debt covered at this time).

From what I understand DFW market is super competitive, but that means that your average time from start to finish will be lot less then your annualized return might be pretty good.For example, you might find deals where you are able to make $18k in 3 months vs $30k in 6 months.

Annual MIP will be collected until the end of the loan term, or 11 years, whichever occurs first

I'd be giving up about $300 in interest to make an additional $34k/year.If its relevant, I'm 29, have about 1.5x my annual income in my 401k and want to build my real estate portfolio to supplement retirement since I plan to retire well before I'm able to draw on my 401k. 

Why would the developer want to incur the &36,000.00 annual cost ?