There isn't a sustainability problem in Texas, it's a regulation problem.

Does my experience resonate with yours?

Finally, the compact size of tiny homes often results in lower utility costs, further enhancing their affordability and sustainability.

The buyers I resonated with, who I believed in as operators–those were the people I was willing to be flexible with.

I completely agree that luxury rentals need to offer more than just aesthetic appeal; they need to resonate with tenant expectations and justify the premium rents.

I’m exploring a few options and would love to hear your thoughts on each:Airbnb Rentals: Is short-term rental still a profitable and sustainable option given current regulations?

This will be negative cash flow if using sustained maintenance /cap ex.

That is the reality of these properties and why they are rarely sustainable even if they appear to be cash flowing.- It costs me me less to turn over my 1500 SF units that rent for $3k/m then it does the same size section 8 unit because the property is cared for better and experiences less  wear and tear while fixed costs like cleaning and painting are easier to absorb. 

Year 0: ($2,000 - $1,700) x (1 + 2%)^0 / (1 + 5%)^0 ≈ $300 in today’s buying power.Year 5: ($2,000 - $1,700) x (1 + 2%)^5 / (1 + 5%)^5 ≈ $260 in today’s buying power.Year 10: ($2,000 - $1,700) x (1 + 2%)^10 / (1 + 5%)^10 ≈ $225 in today’s buying power.Year 15: ($2,000 - $1,700) x (1 + 2%)^15 / (1 + 5%)^15 ≈ $194 in today’s buying power.So, if you purchase property in a city where rent increases at a slower pace than inflation, the amount of goods and services you can buy will decrease over time due to inflation.Here is what I recommend:Purchase in a city that possesses the following characteristics.Significant and sustained population growth.Rapid and sustained appreciationBalance negative cash flow, interest rate buydown, and increased down payment to create an acceptable cash flow situation today.Refinance when rates fall to increase cash flow.

Policymakers, government officials, and business leaders can leverage this analysis to craft targeted strategies for fostering sustainable growth in the metros that drive America’s economy.Read the FULL STORY HERE