First STR in North Georgia – Any Tips?

Question

Hello BiggerPockets community!

I’m excited to join this group and learn from all of you. My spouse and I are high-income W-2 employees and real estate rookies hoping to purchase our first short-term rental in the North GA mountains. We’re motivated to start investing in real estate to offset some taxes and build cash-flowing assets as part of our early retirement plan.

Looking forward to connecting and sharing ideas. Any advice for newcomers like us is always welcome!

Melissa Justice · Answer

@Cherie Simon,

Welcome to the group - excited for you both! You’re in a great position with high W-2 income, and your motivation to invest for cash flow and tax benefits is spot on.

Since you’re just getting started, I’d actually encourage you to consider long-term rentals (LTRs) over short-term rentals (STRs) for your first deal (this is coming from my own personal experience in owning STRs). STRs can be lucrative, but they’re also management-intensive, seasonal, and heavily impacted by local regulations. For newer investors, LTRs tend to be more stable, predictable, and passive, especially when you have a busy career.

Turnkey long-term rentals in the Midwest and Southeast can be a smart entry point. They offer:

Lower price points (so you can get in with less capital)
Higher cash flow potential
Professional property management built in
Minimal rehab or upfront headaches

Markets like Alabama, Tennessee, Missouri, and parts of Florida or the Carolinas are seeing steady growth and remain landlord-friendly.

Let me know if you need help vetting markets or looking at deals side by side - happy to help!

Best of luck,

Melissa

Tenzapa Wakombe · Answer

Welcome to the community, and congrats on starting your real estate journey! The North Georgia mountains sound like a great market for short-term rentals—especially with all the tourism and natural attractions in that area.

Since you're high-income W-2 earners, definitely look into how short-term rentals can qualify for material participation to help offset your active income—especially if one of you is willing to take the lead on managing it. That tax angle can make a huge difference early on.

Also, if you haven't already, start building relationships with a local agent who understands STR regulations and seasonality in that market. A good lender familiar with STRs will also go a long way.

Best of luck! Looking forward to following your progress.

Patricia Joseph · Answer

Hi Cherie, welcome to the community! You’re definitely in the right place. There are several Facebook groups for short-term rentals that would be great resources to connect with other STR investors:

Smarter Short Term Rentals with Avery Carl (she’s an agent and has written 2 books on STR investing)

Build Short Term Rental Wealth with Bill Faeth

These 2 groups are a great start for asking questions and seeing what others are doing in the STR space.

Hope this helps!

Lateefah Mathews · Answer

Hey Cherie welcome aboard! I’m taking my hat off to you for already pinning down your strategy and area to purchase and you’re just a rookie… great start!

Here’s a few nuggets of advice… STR rules vary by county up there in North GA so be sure to check with the local zoning office or city website before making any offers… also what loan type are you considering? Some DSCR underwriters won’t underwrite in rural zones so it’s good to check that upfront

AirDNA or PriceLabs will be your best friend (& wise short-term investment)  when it comes to narrowing down a city and running the real numbers… what specific cities are you looking at?

Feel free to message me if you wanna dig a bit deeper… best of luck on your venture!

Cherie Simon · Answer

@Melissa Justice thank you for that feedback. It's definitely something we are considering!

Andy Yeoman · Answer

Agent here. Have you started looking at properties yet? I just had someone reach out to me last week about selling a STR property in Morganton that is grossing over $80k a year. They may wait a little while before selling, but there is one other one on the market and another coming soon on the same road. STR's are still cash flowing like crazy in North Georgia. I'd be happy to connect.

E.J. McCaffrey · Answer

Welcome!

When engaging in short-term rental (STR) investments, understanding tax obligations is key. Income from STRs is generally considered active income if you’re directly managing the property, which typically subjects it to a 15.3% self-employment tax.

To mitigate this liability, strategic entity structuring can be effective. For instance, holding the property in a limited liability company (LLC) that leases it long-term to a separate C Corporation LLC handling STR operations may reclassify income to avoid self-employment tax. This approach requires meticulous adherence to IRS guidelines to maintain compliance.

Collaborating with experts is critical: Tax professionals specializing in real estate can tailor strategies to your goals; and Asset protection attorneys ensure entities are structured to shield personal assets and align with tax laws.

Proactively building this advisory team helps prevent errors, optimizes tax efficiency, and supports sustainable growth.

Disclaimer: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication..

Joseph Chiofalo · Answer

Hi Cherie,

Welcome to the community-

There are many resources and professionals here on bigger pockets to learn and grow your business.

Best of luck on your new journey!

JC

First STR in North Georgia – Any Tips?

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