Short Term Rentals, or STRs, are a very hot investment space right now. Revenue numbers can dwarf long-term rental units, if your property is in a desirable location with a strong tourism component. Yes, there are higher costs as well (property management, cleaning, etc), but in a market like Austin, the numbers are very compelling. STR is the best way to maximize your revenue.
However, investors who are familiar with Austin know that the city has made it difficult and expensive to own and operate STRs here. Restrictions include that only owner-occupied dwellings are eligible, and one must apply-for and keep current a license to operate a STR. However, by working with an experienced agent (like me) you can identify work-arounds. For example, if you have a minimum rental period of 30 days, you're not considered an STR. These rentals are very sought-after in Austin right now, and people are moving here, but want a couple of months to get the lay of the land before buying... but most apartments and SFH rentals require 12 month leases. A great niche!
Another option would be to look at suburbs or nearby recreational areas like Lake LBJ.
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