Short Term Investment Property with ADU Project

[Mike Dang]

Hi Everyone,

I am looking to do my first out of state short term investment property and I'm currently trying to decide between Houston, Texas vs Atlanta, Georgia.  So far I compiled a list of pros and cons for each area.  Any input from the community would be much appreciated as I'm hoping to build my out of state portfolio. 

HOUSTON

Pros

-City with a lot of tourist traffic 

-Reasonable Prices in the 3 bedroom 2 bathroom range with a big enough lot for an ADU project

-ADU friendly with a variety of contracting companies to partner with

-Closer to California

-Closer to surrounding cities that also see high volume of tourists

Cons

-High homeowner insurance from Floods and Hurricanes 

-High Property Tax

ATLANTA

Pros
-Reasonable Prices in the 3 bedroom 2 bathroom range with big enough lot for an ADU project

-ADU friendly but at first glance, Houston looks like they have more companies that perform ADU projects

-Higher median Rent

-Better weather

Cons

-Further from California

-Also at first glance it doesn't seem as heavily traveled by tourists compared to Houston

-Houses seem more outdated compared to Houston

[Sarah Kensinger]

Another con to add to the Houston list...STR regulations are being talked about and petitioned for by local homeowners.