I had to look that up. Yes, he did. When he strengthened his borders, the Transylvanian Saxons were upset because they used part of that territory for their trade routes. As a result, they wrote and sang vicious songs about him being a tyrant, murderer, and blood drinker.
Your comment got me interested in how the whole vampire legend began. There is, from what I can tell, a decent biography of Vlad III, his life, his defending Wallochia, and how his reputation changed over his life and after. If you're interested, here's a like. The one on Google books is only a preview, and the only epub copy I can find is in French, but this at least shows the table of contents.
Probably not in the racial sense.
https://books.google.com/books?id=cQEtDwAAQBAJ&printsec=frontcover#v=onepage&q&f=false