First-Time Investment Buyer

[Phillip Busino]

Hi Everyone! My name is Phillip Busino, and I wanted to get everyone’s opinions on short term vs long term rentals and market to start in. 

Long-term seems to be easier to manage and more consistent, but I was hoping that I could get some advice on which one might be better to start out, and if starting in my local market might be better until I get more experience.

Any suggestions would be highly appreciated. Thanks!

[Michael Dumler]

@Phillip Busino, just a heads up, many Atlanta condos have both high HOA fees ($400-$600 per month) that kill cash flow and rental restrictions that do not allow LTRs or STRs. Moreover, the City of Atlanta and certain districts are cracking down on STRs in general. Join Atlanta Metro Short Term Rental Alliance on Facebook to receive updates regarding new County rules/regulations. With that being said, generally speaking, LTRs are a little more risk-averse.

I posted this verbatim responding to a similar forum thread yesterday, "Depending on what we see over the next six months to a year, in my opinion, Atlanta is slowly becoming an appreciation-based investment market. Pre-covid, one could find and acquire adequate traditional cash flow deals, but unfortunately, that is no longer the case. Needless to say, investors have to be creative and value add to the property to make a deal work. In 2022 and for most of 2023 the majority of my clients and their transactions have been focused on rent-by-the-room investments. Depending on your budget, if you're looking for high-yield cash flow here in ATL, rent-by-the-room properties can provide it. That being said, more risk is assumed and the strategy is not for everyone." 

Just curious, is house hacking an option for you? What does your current living situation look like? If you have any additional questions regarding investment strategies or the Atlanta market in general, please shoot me an email or text to connect (contact info is listed in my bio).