Best areas to buy investment rental property near Georgia?

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  • #93903 Reply

      I’m thinking about buying an investment rental property. I would like the property to be 275k or less and in an area that I could easily Airbnb out preferably within driving distance from my home state of Georgia. I was thinking of the Gulf Shores Alabama area or somewhere near the gulf or the coast. Any advice or direction would be helpful. Has anyone done this and can offer some helpful advice?

      I’m nervous about making a mistake and buying in the wrong area or regrets about my decision.

      #93904 Reply

        Sounds like you need an analytical tool to determine ROI, Risk, Cost, etc.

        Maybe someone else will chime in with a suggestion.

        #93905 Reply

          Start with Bigger Pockets to learn the rental fundamentals on how to calculate cap rates and analyze properties. It sounds like you’re trying to go from 0-60, and I think you might want to approach the rental market more slowly and broadly instead of getting super specific with the how and where.

          I’ve been a host on Airbnb for 8 now and I can easily say who wouldn’t want to buy a STR investment property @ 275K that cash flows in a touristy area? In these vacation areas that have been allowing Airbnbs for 10+ years, many of these properties would have been analyzed and picked over by savvy investors years ago and will now be priced based on STR income.

          You never want to buy a property that you’d be underwater on if you had to go from STRing to LTRing; just ask all the folks who owned properties like this on March 14, 2020, or all the STRs that have gotten the rug pulled out from them when a rental regulation passes and restricts STRs in certain areas with lack of affordable housing.

          The ship has sailed with a lot of Airbnbs in many areas: blue-leaning areas either ban, cap or restrict them, and red-leaning areas where they’re unrestricted, hosts can often cannibalize each other’s profits if 10 Airbnbs suddenly go live next to yours.

          In this market you really need to find a niche that hasn’t been explored, like adding extra bedrooms, bathrooms or a finished basement in a SFH to generate more rental income and equity, converting a SFH into a multi or adding an ADU, etc.

          Explore these too: Sell rental property or keep for future family use?

          #93906 Reply

            I have a few long-term rentals, but I closed on my first Airbnb March 1st and created the listing on Airbnb/VRBO a week ago, so my experience with a short-term rental is relatively light.. But, for what it’s worth— I would make sure to build in and consider the cost of furnishing the property. And know that in the case of Airbnb, ‘furnishing’ doesn’t mean making it livable; it’s means being livable, with all necessities, PLUS being competitive. It’s not a cheap achievement. Beyond that, WiFi, utilities, cable (if applicable), games, etc. There has to be something that sets you apart, and you either pay for that when you buy the property, or you pay for it when you transform the property.

            Beyond that, make sure you have logistics hammered out. Cleaning person, backup cleaning person, etc. Especially starting out, your reviews are going to be everything, so you have to execute.

            #93907 Reply

              I would suggest learning from pros. There are courses and groups that you can join that will teach you how to do this. Also fully understanding regulations on STRs is a huge part of the research aspect as well.

              Totally doable but doing your research and having the right guidance is the best strategy.

              #93908 Reply

                I would not purchase any rental property that wouldn’t work as both a short and long term rental. As mentioned above, the short-term market is shifting quickly, and many properties can no longer be rented out on a short-term basis. Having the ability to rent long term as a plan B is crucial.

                Just do your research so you have considered all the benefits and risks appropriately.

                You also need to have an emergency fund set up for the property.

                Don’t miss: For those with rental property, are you seeing insurance rates increase?

                #93909 Reply

                  Coach Carson on YouTube or on Apple Podcasts is a great resource. He even has a short term course to get new investors started with their first property.

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