Question 1

Can I buy a house in Waco and put it on Airbnb?

Accepted Answer

Not in most of the city's single-family neighborhoods. Waco's own zoning schedule lists non-owner-occupied short-term rentals (STR Type II) as "Not Allowed" in the R-E, R-1A, R-1B, and R-1C districts, and the special-permit path that used to exist there was removed effective June 15, 2021. STR Type II is only allowed by right in denser districts (R-2, the R-3 districts, the O districts, and C-4). An existing STR license also does not transfer with the property at sale, so a buyer has to qualify the address fresh. If you're underwriting a purchase to short-term rental income, confirm the zoning district before you fund the deal. Apply now. Subject to underwriting.

Question 2

Do you lend in the Waco area?

Accepted Answer

Yes, across McLennan County. We're a direct lender headquartered in Bee Cave, Texas, and we fund deals in Waco, Hewitt, Woodway, Robinson, Bellmead, Lacy-Lakeview, China Spring, and McGregor. Every loan is business-purpose only, on investment property, and terms are subject to underwriting. See loan programs or talk to us.

Question 3

What will property taxes run on a Waco rental with no homestead exemption?

Accepted Answer

About 2.2484 per $100 of value in the city of Waco, and it's headed up. That's McLennan County (0.334805) plus McLennan Community College (0.131974) plus the City of Waco (0.755000) plus Waco ISD (1.026600) on the county's 2025 adopted rate table, with no homestead exemption available to an investor. China Spring, unincorporated with no city tax, runs about 1.4487 per $100 instead, the lowest stack among the metro's named submarkets. The county proposed a 6-cent increase, to 0.394805, for tax year 2026, about an 18% jump over the current rate, so don't underwrite a five-year hold on a flat tax line. Confirm the exact stack for a parcel with the McLennan County Appraisal District, since city limits and school district lines aren't the same boundary.

Question 4

Is there a cap on unrelated roommates for a long-term rental near Baylor?

Accepted Answer

No general cap. Waco's zoning code defines "family" as an individual, related persons, or "a group of unrelated persons living together as a single housekeeping unit," with no number attached. The only caps in the code are narrow: a small-lot single-family dwelling (under 50 feet wide and under 6,000 square feet) is limited to two unrelated occupants, and short-term rentals in the lowest-density districts cap at four unrelated individuals. By-the-bedroom long-term leasing near Baylor is not fighting a general headcount rule the way it once was in some other Texas university towns. A heavy rehab near campus can still trigger the city's College and University Neighborhoods overlay once renovation cost crosses 30% to 50% of the building's appraised value, which brings its own parking and design requirements. DSCR rental loans. Subject to underwriting.

Question 5

What should I budget for insurance risk on a Waco property?

Accepted Answer

Plan for hail, and plan for it to be lumpy. McLennan County paid $58.2 million in homeowners losses across 47,827 policies in 2025, about $1,216 per policy, with wind and hail at 53% of that total. In 2023, a worse hail year, the county paid $120.6 million, about $2,575 per policy, with wind and hail at $1,986 per policy alone. The county sits about 180 miles from the Gulf and isn't in the state's coastal wind pool, so the insurance conversation here is roof age and hail deductibles, not hurricane wind. Underwrite carry costs to a 2023-shaped year, not a quiet one.

Waco Hard Money and Investor Loans

A flat, cheap yield market

The Airbnb story most people repeat here is wrong

Institutional payrolls, and taxes that are climbing

Loan programs in Waco

Waco lending questions

Funding Waco deals fast.