Rental Strategy & Investment Analysis
2709 Gaston Ave
Dallas, TX 75226
4-Level Townhome · 2 bd / 2.5 ba · 2,217 sqft · Prepared for Nnamdi · April 2026
Baylor Medical <0.5 mi
Deep Ellum / Old East Dallas / Swiss Ave Historic District
Rooftop Patio · Attached Garage · Large Windows
Already Furnished · HOA Community
Subject Property Layout
Level 1
Entry · bedroom · full bath
Level 2
Main living room · kitchen · open layout · half bath
Level 3
Office / flex space · master bedroom · master bath suite
Level 4 — Rooftop
Private rooftop patio
Key Facts
2,217 sqft · Built 2002 · Attached garage · Already furnished
HOA
Yes — low fees. No shared pool or clubhouse.
Pricing Recommendation
Recommended Listing Prices — 2709 Gaston Ave
Long-Term Lease (unfurnished)
$3,100–$3,300/mo
Mid-range of comps. No furniture investment needed. Existing furniture must be removed or stored.
Mid-Term Furnished (30–90 days)
$3,500–$4,200/mo
As-is furnishing. Hospital demand keeps vacancy low. List on Furnished Finder + Airbnb monthly.
Short-Term / Airbnb (nightly)
$195–$250/night
Standard as-is. Luxury upgrade: $300–$375/night. World Cup 2026: $450–$650/night potential.
Long-Term Rental Comps — 12-Month Unfurnished Lease
Private-entry townhomes only. No shared pools, clubhouses, or apartment complexes. Furniture must be removed or stored for this strategy.
| Address | Bd/Ba | Sqft | Rent/Mo | Daily Equiv. | Match Notes | Grade |
|---|---|---|---|---|---|---|
| 2709 Gaston Ave (subject) | 2/2.5 | 2,217 | $3,100–$3,300 | $102–$108/day | Rooftop, large windows, garage, Swiss Ave historic district, private HOA community, no shared pool | Subject |
| 4515 Cabell Dr, 75204 | 2/2.5 | 1,539 | $3,200–$3,435 | $105–$113/day | 3-story, tandem 2-car garage, hardwood, Knox-Henderson. Slightly more updated — good ceiling comp. | A |
| 4906 Live Oak St #3, 75206 | 2/2.5 | ~1,800 | ~$3,395 | ~$112/day | 4-story, gated, private rooftop with Downtown views, open layout. Strong product match. | A |
| 1924 California Dr, 75204 | 2/2.5 | ~1,800 | $3,200–$3,400 | $105–$112/day | 3-story townhome, Knox-Henderson, walkable, private entry. Clean style match. | A– |
| 1008 Pavillion St, 75204 | 3/2.5 | 1,874 | $2,995–$3,250 | $98–$107/day | Similar walkability and interior style. 3-bed pulls price down — use as market floor. | B+ floor |
| 4210 Roseland Ave, 75204 | 2/2.5 | 1,795 | $3,200–$3,650 | $105–$120/day | 2023 new build, rooftop with sliding doors, 11ft ceilings, designer kitchen, 2-car garage. Luxury ceiling. | A+ ceiling |
| 3615 Edgar Pl ✗ Removed | — | — | — | — | Community with shared pool & clubhouse. Subject has neither. Not comparable product. | ✗ |
| 1310 Rancho Mirage Dr ✗ Removed | — | — | — | — | Confirmed apartment complex — shared weight room, office area. Not comparable product. | ✗ |
Mid-Term Furnished Comps — 30–90 Day Stays
Property is already furnished — zero additional investment. Primary tenants: travel nurses (13-week hospital assignments), physicians, corporate relocations at Baylor Medical.
| Source / Property | Bd | Monthly Rate | Finish | Notes |
|---|---|---|---|---|
| 2709 Gaston Ave — STANDARD (as-is) | 2 | $3,500–$4,200/mo | Standard | As-is furnishing. Rooftop, garage, Baylor proximity. List on Furnished Finder (no fee) + Airbnb monthly. |
| 2709 Gaston Ave — LUXURY ($15K upgrade) | 2 | $4,500–$5,500/mo | Luxury | Executive furnishing package. Targets physicians, corporate relocation, VIP medical stays. |
| Gorgeous Greenville Townhouse near Medical Center (Furnished Finder) | 2 | TBD — confirm rate | Mid | Near medical corridor. Greenville proximity. Strong comp for hospital-area MTR pricing. |
| Sun-Drenched Luxury Townhouse in Heart of Dallas Nightlife (Furnished Finder) | 2 | TBD — confirm rate | Luxury | High-end finish and location. Useful ceiling comp for luxury MTR scenario. |
| Modern 2BR 1.5BA Townhome w/ Balcony Walk to Greenville (Furnished Finder) | 2 | TBD — confirm rate | Standard–mid | Balcony, walkable to Greenville. Similar product type and tenant profile. |
| Midterm — Knox Henderson 3BR Near Dallas Hospitals · 2 Garage (Furnished Finder) | 3 | TBD — confirm rate | Mid | 3BR commands premium. Useful upper-range reference for hospital-adjacent MTR market. |
| Spacious Furnished Condo Near Medical District, Airport, Downtown (Furnished Finder) | 2 | TBD — confirm rate | Standard | Medical district proximity. Direct comp for Baylor-area furnished rental pricing. |
| Furnished Finder Dallas 2BD market range (base) | 2 | $3,200–$4,200/mo | Varies | No booking fee. Direct landlord contact. Travel nurse primary market. Non-event pricing. |
| HouseStay — Dallas furnished 2BD market average | 2 | $2,783–$4,500/mo | Wide range | Full market range. Rooftop + garage puts subject near upper end. |
| ⚡ World Cup event weeks (June–July 2026) | 2 | +20–35% above base | Both | Dallas hosting Group Stage + Knockout matches. MTR transitions to STR nightly pricing during peak weeks. |
Short-Term Rental Comps — Airbnb / VRBO (Nightly)
STR and MTR used as one cross-platform strategy — listed everywhere, targeting monthly stays but capturing nightly bookings. During World Cup, concerts, and conventions, flip fully to nightly pricing.
| Listing Name | Bd/Ba | Nightly Rate | Finish | Notes / Grade |
|---|---|---|---|---|
| 2709 Gaston Ave — STANDARD (as-is) | 2/2.5 | $195–$250/night | Standard | Rooftop, garage, historic district, Baylor proximity. Recommended launch price. |
| 2709 Gaston Ave — LUXURY ($15K upgrade) | 2/2.5 | $300–$375/night | Luxury | Designer staging. World Cup peak: $450–$650/night potential. |
| Luxury 3BD | Rooftop Deck | Sleeps 11 | Garage — Fitzhugh Ave, Old East Dallas | 3/2.5 | ~$378/night | Luxury | Direct product match — rooftop, garage, Old East Dallas corridor. 3-bed commands slight premium over subject’s 2-bed. A+ comp |
| Airy+Calm Luxe Escape in the City + Private Rooftop (Airbnb) | 2 | TBD — confirm rate | Luxury | Private rooftop — key differentiator match. Grade pending rate confirmation. A comp |
| Luxury Downtown Dallas Retreat Near Uptown (Airbnb) | 2–3 | TBD — confirm rate | Luxury | Downtown/Uptown positioning. Useful ceiling comp for luxury scenario. |
| Luxury Downtown Dallas Getaway Near Uptown (Airbnb) | 2–3 | TBD — confirm rate | Luxury | Similar to above — cross-reference rates for luxury ceiling validation. |
| Upscale House in Lower Greenville close to Downtown (Airbnb) | 2–3 | TBD — confirm rate | Mid–luxury | Lower Greenville area, style comp. Confirm if private entry before using as direct comp. |
| Greenville Ave Downtown Complete Duplex No. 4814 (Airbnb) | 2 | $143/night | Standard | Historic duplex, upscale amenities. Good floor comp for standard pricing. B floor |
| Historic Charm — Munger Place 4 Bd House No. 5201 (Airbnb) | 4 | TBD — confirm rate | Mid | 4-bedroom house — larger product. Use for upper price reference only, not direct comp. |
| AirDNA market avg — Dallas 2BD entire home | 2 | ~$193 avg | Market avg | Dallas-wide. Top 10% of listings: $250+/night. Subject targets top tier with rooftop differentiator. |
| ⚡ World Cup peak (June–July 2026) | 2 | $450–$650+/night | Both | Dallas hosting Group Stage + Knockout matches. 4-level rooftop townhome = premium World Cup positioning. |
True After-Tax Profit — All 5 Scenarios
Tax bracket: 37% federal (highest bracket). No mortgage assumed. Property tax $8,500 + HOA $1,800 = $10,300 fixed annually — highlighted separately as these never change. Furnishing amortized 5 years for upgrade scenarios.
| Line Item | LTR unfurnished · 5% vac. |
MTR Std as-is · 10% vac. |
MTR Lux $15K · 30% vac. |
STR Std as-is · 40% vac. |
STR Lux $15K · 50% vac. |
|---|---|---|---|---|---|
| Base rate used | $3,200/mo | $3,850/mo | $5,000/mo | $220/night | $337/night |
| Vacancy — how calculated | 5% = ~18 days/yr vacant. Hospital proximity = near-zero. | 10% = ~36 days/yr. Gap days between 13-week placements. | 30% = ~110 days/yr. Higher price = longer search time. | 40% = ~146 nights vacant. 60% occ = Dallas market avg. | 50% = ~183 nights vacant. Premium price filters guests. |
| Effective Gross Income (after vacancy) | $36,480 | $41,580 | $42,000 | $48,180 | $61,973 |
| FIXED COSTS — identical across all strategies | |||||
| Property Tax + HOA (combined fixed) | ($10,300) | ($10,300) | ($10,300) | ($10,300) | ($10,300) |
| ↑ $8,500 property tax + $1,800 HOA. These never change regardless of strategy chosen. | |||||
| VARIABLE COSTS — change by strategy | |||||
| Insurance (landlord vs. STR policy) | ($1,200) | ($1,500) | ($1,500) | ($2,400) | ($2,400) |
| Repairs & maintenance | ($1,500) | ($2,000) | ($2,000) | ($2,500) | ($3,000) |
| Furnishings — storage/removal (LTR) or upgrade amort. (MTR/STR lux) | ($1,500) sell/store existing |
$0 already furnished |
($3,000) $15K ÷ 5 yrs |
$0 already furnished |
($3,000) $15K ÷ 5 yrs |
| Platform / listing fees | ($300) | $0 Furn. Finder = no fee |
$0 | ($1,445) 3% Airbnb host fee |
($1,859) |
| Cleaning / supplies / utilities | $0 | ($2,400) | ($2,400) | ($4,800) | ($5,400) |
| Net Operating Income (NOI) | $21,180 | $25,380 | $22,800 | $26,735 | $36,014 |
| TAX DEDUCTIONS | |||||
| Depreciation — 27.5yr residential | ($18,629) | ($18,629) | ($18,629) | ($18,629) | ($18,629) |
| All other deductible expenses | ($3,000) | ($5,900) | ($8,900) | ($8,745) | ($13,659) |
| Taxable income / (paper loss) | ($449) loss | $849 | ($4,729) loss | ($639) loss | $3,726 |
| Tax owed @ 37% (STR: non-passive if material participation met) | $0 | ($314) | $0 | $0 + W-2 offset* | ($1,379) |
| AFTER-TAX CASH PROFIT (annual) | $21,180 | $25,066 | $22,800 | $26,735 | $34,635 |
| Monthly Take-Home Equivalent | $1,765/mo | $2,089/mo | $1,900/mo | $2,228/mo | $2,886/mo |
| *STR Standard paper loss ~$639 — if material participation met (avg stay ≤7 days + 500+ hrs/yr), saves additional ~$236/yr vs. W-2. World Cup event weeks not included — could add $8K–$20K in a single month across STR scenarios. | |||||
Recommendation for Nnamdi: Start with mid-term furnished (standard, as-is) — zero upfront cost, $2,089/mo take-home, best tenant quality (physicians, nurses), lowest stress. Cross-list on Furnished Finder and Airbnb monthly. Flip to nightly STR pricing during World Cup (June–July 2026) to capture $450–$650/night without any furnishing upgrade — that alone could add $8K–$15K in 3–4 weeks. If the STR model feels manageable afterward, invest $15K in a luxury upgrade for the $2,886/mo take-home ceiling. Average stays must stay at ≤7 days and management hours must be documented to unlock the W-2 offset tax strategy.
IRS Rental Classification & Tax Rules
Three completely different tax treatments. At the 37% bracket, how losses are classified matters enormously.
Long-term rental
(avg stay 30+ days)
(avg stay 30+ days)
Passive income. Deductions: property tax, HOA, insurance, depreciation ($18,629/yr), repairs. Losses are trapped as passive — cannot offset W-2 income unless Nnamdi qualifies for Real Estate Professional Status (REPS: 750+ hours/yr in real estate, more than any other occupation). Lowest write-off potential of the three strategies.
Mid-term rental
(avg stay 8–30 days)
(avg stay 8–30 days)
Still passive — same rules as LTR. More deductions available (furnishings, utilities, cleaning). Losses generally cannot offset W-2 without REPS. Depreciation still applies. The real benefit of MTR is income quality and management simplicity — not the tax play. Best risk-adjusted strategy for this property.
Short-term rental
(avg stay ≤7 days)
(avg stay ≤7 days)
This is where the tax strategy lives. If average guest stay is 7 days or fewer AND Nnamdi materially participates, the IRS does not classify this as a rental activity — it becomes a business. Losses are non-passive and can directly offset W-2 income at the 37% bracket with no REPS required. At 37%, every $1 of deductible loss saves $0.37 in federal taxes.
The minimum requirement
(common misconception)
(common misconception)
It is NOT “just one short-term rental per year.” You must maintain an average stay of ≤7 days across ALL bookings for the entire year. One 30-day booking raises your annual average — track every stay. PLUS meet at least one material participation test: (1) 500+ hours managing the property; (2) more hours than any other person including your cleaner or manager; (3) substantially all work done by you. Keep a detailed time log. Hiring a PM who works more hours than you can disqualify you from test #2.
Bonus depreciation
(restored 2025)
(restored 2025)
100% bonus depreciation restored for qualifying property placed in service after Jan 19, 2025 (One Big Beautiful Bill Act, signed July 4, 2025). A cost segregation study on this $512K property could reclassify 20–25% of value (~$100K–$128K) into 5–7 year assets, creating a potential $100K+ first-year deduction for qualifying STR owners. At the 37% bracket, that’s up to $47,000 in first-year federal tax savings — on top of regular annual depreciation. Consult a CPA specializing in STR cost segregation before filing.
Disclaimer: All financial projections are estimates for planning purposes only. Tax analysis is based on publicly available IRS guidance as of April 2026 and does not constitute tax, legal, or financial advice. Actual outcomes depend on filing status, total income, documentation of material participation, and professional CPA guidance. Comp prices sourced from active listings and subject to market changes. Furnished Finder and Airbnb pricing may be temporarily elevated due to the 2026 FIFA World Cup. Comps marked TBD require rate confirmation from listing pages to finalize. Always consult a real estate tax CPA before making rental strategy decisions.