Newbie looking to start - LTR vs STR as 1st property

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Newbie looking to start - LTR vs STR as 1st property

Trent Reeve
Atlanta · Member since 2022 · 710 posts · 640 votes

been reading as much as I can, but I know that I don't know a lot. I have very good credit, about $20k readily available and working on $150k on HELOC from equity off our house. I live in the Atlanta metro area. Debate is where/how to start. I do have a reliable real estate agent that I have existing relationship with, and they themselves own a couple of rental properties. SFH homes on the northside of Atlanta running $300k+, but rentals are around $2.1k+. Do i continue to search or look for STR? considered Gulf Shores or Myrtle Beach as areas I know, but we are at or past the mid-point of rental season and would not realize as much income from it, adding in cleaning, any needed licensing, possible local mgmt of it.

What are first timer investors looking for in today's market? I thought LTR for initial buy, but not seeing the deals in the Atlanta area right now

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  • Myrtle Mike ThompsonBusiness Member
    Realtor · Myrtle Beach, SC · Member since 2016 · 350 posts · 204 votes
    4y

    @Trent Reeve let me know if you'd like to connect regarding Myrtle Beach. I have a couple clients from the Atlanta area that I've helped purchase oceanfront condos (STR) recently.

    [email protected]843-999-2301
    Myrtle Mike Real Estate580 Reviews
    WebsiteView Page
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  • Andrew Garcia
    Lender · Charlotte, NC · Member since 2022 · 739 posts · 410 votes
    4y

    Hi @Trent Reeve, there is money to be made in both the LTR and STR spaces.

    If your issue with investing in Atlanta is that it does not cashflow very much, you can look at some other markets that cashflow better.

    STR is a different beast entirely so make sure that you know exactly what you are getting into if you choose to pursue that option.

    As for the specifics, a local real estate agent that specializes in STRs would likely be your best bet for learning those details.

    Since you are fine with investing in STRs out of state, maybe try looking for LTRs out of state.

    Hope this helps! Let me know if I can be of any assistance.

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  • Trent Reeve
    OP
    Atlanta · Member since 2022 · 710 posts · 640 votes
    4y
    Quote from @Andrew Garcia:

    Hi @Trent Reeve, there is money to be made in both the LTR and STR spaces.

    If your issue with investing in Atlanta is that it does not cashflow very much, you can look at some other markets that cashflow better.

    STR is a different beast entirely so make sure that you know exactly what you are getting into if you choose to pursue that option.

    As for the specifics, a local real estate agent that specializes in STRs would likely be your best bet for learning those details.

    Since you are fine with investing in STRs out of state, maybe try looking for LTRs out of state.

    Hope this helps! Let me know if I can be of any assistance.


    well, i would expect STR rental at vacation areas would generate more money, enough that i would consider finding property management. I dont know how comfortable i am starting out with a LTR out of state without management also. I have around $150k available thru a HELOC.

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  • Michael PorchePro Member
    Rental Property Investor · Boise, ID · Member since 2017 · 220 posts · 101 votes
    4y

    What up @Trent Reeve! Decent question for sure, but my question is why would you ask 'What are first timer investors looking for...?'. Wouldn't you rather know where experienced investors are looking to invest in? There are different strategies to utilize in every market we dive into. Sometimes LTR is best, sometimes STR is best, Some times section 8 is best. It all depends. But the best thing to realize is that you want to be in a position where you are utilizing the right strategy for the right circumstance.

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  • Trent Reeve
    OP
    Atlanta · Member since 2022 · 710 posts · 640 votes
    4y
    Quote from @Michael Porche:

    What up @Trent Reeve! Decent question for sure, but my question is why would you ask 'What are first timer investors looking for...?'. Wouldn't you rather know where experienced investors are looking to invest in? There are different strategies to utilize in every market we dive into. Sometimes LTR is best, sometimes STR is best, Some times section 8 is best. It all depends. But the best thing to realize is that you want to be in a position where you are utilizing the right strategy for the right circumstance.


     i guess i think that experienced investors are more apt to take on situations that require more experience and knowledge. I wouldnt know all the requirements and what to look for regarding section 8 when an experienced investor would know what to look for and what to avoid with those. I m quick to learn and can research like a monster, but have to know what to research and look for. i have an IT career and you typically buddy up with the more experienced people to learn from them. What i see reading here, that is only happening when you are bringing something to them of value. But when you are just starting, you dont know what is a good find or not so are you not bringing them a good find as you may not know what to look for, or even how to look for it.

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  • Mark H. Porter
    Investor · SC NC, VA · Member since 2020 · 1k+ posts · 756 votes
    4y

    You’ve got $600k of buying power.  Can’t you find a positive pre-tax cash flow duplex in Atlanta for that?

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