All Forum Posts by: David Holcombe

I would use caution doing STR in an HOA environment unless it's a very STR-friendly HOA with bylaws that are difficult for the board to change. There's a building here in Atlanta where there were quite a few STR units. The board decided they didn't want STR, changed the bylaws and outlawed it completely in their building (Even though STR was allowed when these people purchased the units). It can take 6-24 months (depending on the costs) to recoup the costs of setting up/furnishing a unit. I would rather purchase a single family or duplex (with no HOA) where you don't have that added layer of risk. Just read those HOA docs closely and understand the risks of changing rules. Good luck!

David Holcombe

(STR Agent/Investor/Atlanta Native)

Keller Knapp Realty

I wanted to add an update to this since the Atlanta STR legislation is so uncertain right now. So, Atlanta passed STR legislation in March 2022 that was very restricting. However, as of January 2024, they haven't written a single ticket or enforced their STR rules in any way. The city has acknowledged the current STR rules are not legally enforceable and based that on the recent court case in New Orleans where the requirement to have a primary residence in the city was deemed unconstitutional (Atlanta's current legislation has this Primary residence requirement). Atlanta's STR website shows they're delaying enforcement with no future enforcement date in place. City Council has said they're going to amend and update the STR laws in 2024. The revised legislation that they're trying to push through likely will not have a Primary Residence requirement or limit on the number of STR properties an investor could own. Instead what's in discussion is putting a "global cap" on the number of STR licenses available in the city. This Cap would allow room for some future new STR supply. They're trying to include grandfathering of existing properties (Grandfathering is common in Georgia like non-conforming duplexes, etc). Long story short, no, no one is currently enforcing the 2 property limit. I have several clients that have 10+ units operating as STR's in Atlanta with no issues. Future rules are uncertain but I'm optimistic they'll be favorable.   If you need help identifying the best areas for STR in Atlanta, best operators, contractors, designers, etc, give me a shout. Good luck!

David Holcombe

Hi Roberta, 

I'd be happy to chat with you! I was the real estate manager for Georgia for the largest AirBnB arbitrage company in the world before becoming a real estate agent here in Atlanta specializing in furnished rentals. There are certainly challenges and things to watch out for but there are people out there successfully doing AirBnB arbitrage.

Happy to chat about: Identifying the best property types and locations for this. The latest with Atlanta STR Legislation. The pros and cons of arbitrage vs purchasing a property for AirBnB. The best STR operators in Atlanta. Prospecting and overcoming landlord's objections to STR arbitrage. Good luck!

David Holcombe

Looking forward to the meeting! I'm an agent and investor. I'm working on upscale furnished rentals, ADU's, and I'm new to Padsplit. If anyone has interest in any of those, would love to discuss.

Subdividing to sell ADU's fee simple isn't legal in City of Atlanta yet but there are ADU advocates pushing for this.

The value the ADU adds really depends on the location and how you expect to use it. For example, the best ADU project I've ever seen was a 2 bedroom, 750 sf ADU in Atlanta that cost about $200k to build but is rented for $6k/month on average as a furnished monthly rental. It gets that premium because the location is A+ and access to the ADU is great, it has alley access and it's own driveway. With construction costs over $260 psf, this wouldn't add value to the project if it were in suburban Atlanta where rents and sales prices psf are lower, but in this part of town, sale prices of homes are $500-600 psf so adding square footage at $260 psf is a big win. Also, from an investors perspective, this gets you to almost 3% of the sale price in rental income per month. (A lot of investors are targeting 1% per month). This is an extreme example, but there are a lot of deals I look at that can get to 2% rent/month. ADU's can be amazing value-add plays in the right situations.

use data sites like costar or yardi to find small apartment owners. (You're more likely to get a yes from someone local that owns a 5-20 unit building than a 100+ unit building). While they're under construction or renovation is a good time to approach the owner because they likley don't have a management company in place and you'd be adding value by speeding up their lease up process. And you could get contiguous units. You could also look at AirBnb to see what apartment buildings are currently allowing STR and try to start there

Thanks all. Correct, we've got a forensic accountant involved already as well as a trial attorney.  The trial attorney is more experienced in contract law and fraud than real estate and doesn't have a go-to real estate expert witness. So we're looking for some recommendations.  

Hi BP, a friend of mine is in need of an expert witness to testify in an upcoming fraud case involving flipping houses (it will be a few months from now). He was defrauded out of $500k+ by a flipper that he was investing with.  We're looking for recommendations for someone in Atlanta that's a reputable expert in residential real estate investing and/or flipping houses and has experience being an expert witness. Any idea where I could find someone like this?  Thanks in advance for the help

Hi BP! Looking for some opinions on where to hang my license. Here's the scenario: So, I've been a commercial real estate agent in Atlanta GA for the past 10+ years but I'm interested in doing more residential real estate on the sales side and investing side. I'm currently licensed but my license is on inactive status. I'm looking to hang my license with a residential real estate company. My goals are: 

1.  To sell 1-3 houses a year, (mostly helping friends/family) 

2. To purchase investment houses for myself without paying a buyer-side agent (or paying much to my broker's company).

3. Possibly get some leads from the firm.  

I'll need minimal support from the company I hang my license with. I don't want to pay a ton in desk fees.  I've been considering Redfin or something similar. Does anyone have experience with this in Atlanta? Any feedback would be greatly appreciated. Thanks in advance!