help with first ATL Purchase/STR

Robb Silverstein · 2022-03-24T13:16:06-07:00

Hello . I am looking at getting a condo or maybe a house. Likely STR but open to just having long term as well. Budget is around 200-250K. Since I am out of state I am really looking for some "boots on the ground" to guide me through the process . I'm not even sure of location but so far leaning Atlanta, Providence, I have few questions though. 1. Being out of state how hard is it too fully furnish a STR without visiting? 2. Condos get SUCH a bad rep on here which makes me really not want to go that route but the thing I do like is that it seems less competitive to get, and allows me to get a prime location for less money than a house. Is there anyone on here who has made it work numbers wise recently with condos? Either STR or just renting on a yearly basis. If you did it yearly, do you find it much harder to attract tenants at a condo vs a house? I would think people would like being right in the middle of everything and not having a commute. 3. Is there a way without spending hours upon hours to find specific buildings and cities that are good for condo investing. I obviously don't want to worry about assessments or some crazy HOA clause. I don't mind the HOA fee's if I feel everything else works. Sorry for the essay . This would be my first investment and really looking for any guidance! -Robb

Brenden MitchumBusiness Member

Rental Property Investor · Atlanta, GA · Member since 2019 · 1k+ posts · 872 votes

4y

Hey @Robb Silverstein

I am no STR pro but can still help provide a little insight on your questions.

First, make sure you look into the new STR laws within the city of Atlanta. I've read multiple forum posts and an article saying these are changing (or have changed) and you now need to be an Atlanta resident to open up new STRs.

Now, your questions:

1. Not hard at all. You just need to find the right contractor to help with this. Most of my clients are out of state and invest in co-living spaces. They are fully furnished and our contractor is responsible for this.

2. They get a bad rep and have less competition for a reason...this isn't to say you can't run a successful condo rental. However, it will just take time and proper due diligence to find the right one. Also, Atlanta suburbs have mostly detached homes so supply of condos and townhomes are fairly limited. You will be competing with the hundreds (maybe thousands) of folks looking for affordable housing because SFH values have skyrocketed. So, don't necessarily assume it'll be a cake walk getting anything you like under contract. I have not personally owned a condo but know folks who have and sold because of increased HOA restrictions and fees. That's just something you cannot control and successful investors typically like to control as much as they can to make investing a science vs. just hoping for best results.

3. Not that I know of. Think about it. In order for this to be a thing, you would need one of two occurrences: 1. Every association to keep their rules and regulations organized within a single system that the public has access to. 2. An individual or company go around and speak with every association and log their rules and regs in a single system and make it public. Would be awesome if either of these happened though! That being said, your agent should be able to tell you when looking at a listing through the MLS whether or not it has rental restrictions. They should also be following up with the listing agent to double check. You don't need to spend hours doing this unless you're trying to source these off-market.

Hope this helps a bit! Please, feel free to reach out anytime if you have other questions or just want to chat about the Atlanta market!

[email protected]404-737-0018

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Darrion P.

Investor · Atlanta, GA · Member since 2021 · 43 posts · 26 votes

4y

Greetings Robb, Welcome! Here's the info you need.

Atlanta Short Term Rentals: https://www.atlantaga.gov/gove...

Best Regards,

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AJ Satcher

Investor · Atlanta, GA · Member since 2021 · 132 posts · 60 votes

4y

I can't speak to condos, but I do know for a fact if you are looking for a solid single family investment in that price range without having to put in any extra cash in ATL... good luck! In all seriousness though, I do think you can get something decent at 250 but anything 230 and below, thats when things REALLY drop off in terms of quality. Multi's in that price range are virtually non-existent. I'd just be careful in ATL right now, theres a lot going on here with investors just trying to take advantage of the market conditions currently.

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Niyi AdewoleBusiness Member

Real Estate Agent · Atlanta GA & Orlando, FL · Member since 2015 · 214 posts · 101 votes

4y

Hi @Robb Silverstein

I am an investor and realtor in Atlanta. Currently own 2 short term rentals and manage an additional 4 (6 total). I just shot you a PM, more than happy to connect to share my experience and also walk through the numbers on what each Airbnb is pulling in to help define an area better. I wanted to provide some background and context before answering.

1. I have fully furnished a few airbnbs for clients without them visiting (Short Term Rental Link). It typically costs ~$5k per bedroom to fully furnish a unit. (i.e. 3 bed 2 bath will take ~$15k to furnish correctly). You do not have to be there to get it furnished, but you will need an experienced person to act as your "boots on the ground" to get it going.

2. There is nothing wrong with Condo's, however if you're specifically looking to get into short term rentals i would highly recommend purchasing a home. Most condo associations do not allow Airbnb, and with the new STR laws in place, a few complaints from neighbors sharing the same walls with your unit can sink your ship. Within the $250k range you can still purchase a solid single family that can listed on Airbnb and pull in a good amount of income.

3. Would refer to #2 on this one. If STR strategy is what you are looking to pursue, would heavily favor a single family in Atlanta to avoid issue above. (Short Term Rentals v.s. Long Term Rentals)

Hope this helps

Warmly,

Niyi

[email protected]

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help with first ATL Purchase/STR

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