Hi my name is Brianna. I'm a newbie at REI in Charlotte,nc. I travel a lot to Atlanta and had a serious thought about investing in a apartment by either renting and subletting or purchasing a apartment and renting it out to air bnb type platforms and traveling professionals. The market that I've did some research in has a high rate of profits in Atlanta vs Charlotte. Any thoughts? I'm open
Purchase and rent it out as an STR. Have a back up plan for a LTR. I'm sure others will have different opinions.
The biggest issue you want to make sure of is the building HOA/Board or whatever it might have. Does it allow short term rentals? Are there others in the building doing that? If the HOA decides to not allow STR's after you get started, can you afford to keep it?
What I would do is get on AirBNB and VRBO and check for apartments/condo's in your specific area. See how many are in a certain building and their rates/occupancy. That will give you a pretty good idea of the market and if a specific building allows short term rentals.
Good luck with your project! I think if you buy, you will do well!
@Michael Baum the only reason I considered renting them instead of buying them is because of maintenance. When I buy I understand the property is now mine which is a plus but also a minus when it comes to up keep. Any thoughts?
Hey @Brianna Chisholm . I hear you on that, but we kinda frown on that around here. It's called arbitrage and it leaves you open to changes that you have no control over. For example, what if the HOA decides to ban STR's. If you own it, you can just turn it into a LTR and are good to go. Still making some cashola and building equity.
If you rent it, you will most likely have to pay above market rates if you can find anyone to rent to you at all. If things change, like a ban on STR's in the building or the area of town. You are stuck with a place you might be paying above market rates so it will be a loser until you can get out of the lease.
Maintenance isn't that big of a deal. Our vacation rental is 2700 sqft give or take and it is a piece of cake to maintain. The key it to have the main systems serviced on a regular basis. We have our A/C and furnace serviced 2x a year. We are on a contract that costs $12.50 a month. It includes filters and everything. Totally worth it.
Just get yourself a solid handyperson and cleaner. The cleaner will be your regular contact. They will be keeping an eye on the place. They will tell you if they find anything out of place. Like a piece of trim that came loose or something like that. Then you just call the handyperson to come and take care of it.
We manage our home from 360 miles away and have done so for 4 years. Guests are surprisingly accommodating. We had a fridge issue. I had our guy out there same day. He took care of it and the people were happy. Got a 5 star review! We had the original A/C unit fail and couldn't get it replaced for 7 days but there was no issue with the next guests. They were happy just to have the unit up and running.
You will be traveling there fairly regularly so you can see what's what when you are there. I do the same thing. I head over once a month or so to see if everything is copacetic. Some folks on here never see their rentals and that works too!
You can do it Brianna!