Inherited a property, looking for advice on how to capitalize

Asheville, North Carolina
Starting Out
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Inherited a property, looking for advice on how to capitalize

Daniel Williams
Member since 2025 · 1 post · 1 vote

Hi BP!
My name is Kaitlyn and I’ve been listening to Bigger Pockets for the past few months and am learning as much as I can about real estate investing!
I’m an Asheville native and recently inherited a home on 5 acres that I have been renovating for the past year. It’s almost finished and I intend to rent it out. Also on the property, is a detached garage and a 2 story barn, both which have electricity and are in great condition. 
I'm looking to explore options on how to best use the equity and potential in my property. I've considered converting one of the buildings into an ADU, or subdividing and selling part of the land, or pulling equity out of the house to invest in another property. The house is paid off but I took out a $50k loan from a family member for the renovations that I need to pay back within the year.
Since I don't intend to live in the home, and I've been on unemployment for 6 months due to Helene (just found a new job but my income wasn't what it was pre-flood), a DSCR loan seems like my best choice.
I would love to hear from investors in the area on what my next steps would be to capitalize on this unique property. It is outside city limits near the French Broad River in Woodfin (no flood damage). Thanks in advance for any advice or ideas you have!  

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Laura Navaquin
Investor · Member since 2024 · 83 posts · 58 votes
1y

Hi Kaitlyn! Thanks so much for sharing your story and congrats on nearing the finish line of that renovation! You’ve already taken major strides by turning an inherited property into a potential income-producing asset, and your mindset around leveraging the equity is spot on.

With 5 acres, a paid-off home, and two additional structures with electricity already in place, you’re sitting on a high-potential mini compound and there are several creative directions you could take depending on your goals.

Here are a few thoughts and strategies to consider:

1. BRRRR Style rrefinance

A DSCR loan could be a great fit, especially since you won't be living in the property. Many DSCR lenders won't underwrite based on your personal income but instead look at the rental income the property can generate. If the home appraises well post-renovation, you could pull cash out, pay off your family loan, and potentially have capital left to invest in another property.


2. convert to a Multi Income Property

  • ADU Conversion: If zoning allows, converting the garage or barn into an ADU or short-term rental could significantly increase your monthly income and allow you to truly maximize the property's footprint.

  • Mid-term Rentals: Given your location near Asheville and proximity to the French Broad River, mid-term furnished rentals for travel nurses or remote workers could be very lucrative.

3. Sub Division or Land Sale

If you’re comfortable parting with some of the acreage, subdividing and selling a portion could give you fast capital with no debt, which might be a great option if you’re still in transition with your new job. Just be sure to check with Buncombe County zoning and planning about feasibility.

  • Get a local appraisal or at least a CMA from an investor-friendly agent to understand your property's after-reno value.

  • Talk to a DSCR lender now to get pre-qualified based on rental income projections.

  • Consider connecting with a land-use planner or local zoning expert before committing to subdividing or converting any structure.

I’m happy to connect you with resources or help you talk through your goals more specifically. You’ve got a really special asset, the key is aligning the strategy with both your short-term cash needs and your long-term wealth-building vision.

Wishing you the best as you move forward and seriously, you’re doing an amazing job navigating a tough situation with creativity and grit!

Best Regards, Laura Navaquin
Investor | BRRRR Strategy Coach | Advocate for Creative Financing

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  • Laura Navaquin
    Investor · Member since 2024 · 83 posts · 58 votes
    1y

    Hi Kaitlyn! Thanks so much for sharing your story and congrats on nearing the finish line of that renovation! You’ve already taken major strides by turning an inherited property into a potential income-producing asset, and your mindset around leveraging the equity is spot on.

    With 5 acres, a paid-off home, and two additional structures with electricity already in place, you’re sitting on a high-potential mini compound and there are several creative directions you could take depending on your goals.

    Here are a few thoughts and strategies to consider:

    1. BRRRR Style rrefinance

    A DSCR loan could be a great fit, especially since you won't be living in the property. Many DSCR lenders won't underwrite based on your personal income but instead look at the rental income the property can generate. If the home appraises well post-renovation, you could pull cash out, pay off your family loan, and potentially have capital left to invest in another property.


    2. convert to a Multi Income Property

    • ADU Conversion: If zoning allows, converting the garage or barn into an ADU or short-term rental could significantly increase your monthly income and allow you to truly maximize the property's footprint.

    • Mid-term Rentals: Given your location near Asheville and proximity to the French Broad River, mid-term furnished rentals for travel nurses or remote workers could be very lucrative.

    3. Sub Division or Land Sale

    If you’re comfortable parting with some of the acreage, subdividing and selling a portion could give you fast capital with no debt, which might be a great option if you’re still in transition with your new job. Just be sure to check with Buncombe County zoning and planning about feasibility.

    • Get a local appraisal or at least a CMA from an investor-friendly agent to understand your property's after-reno value.

    • Talk to a DSCR lender now to get pre-qualified based on rental income projections.

    • Consider connecting with a land-use planner or local zoning expert before committing to subdividing or converting any structure.

    I’m happy to connect you with resources or help you talk through your goals more specifically. You’ve got a really special asset, the key is aligning the strategy with both your short-term cash needs and your long-term wealth-building vision.

    Wishing you the best as you move forward and seriously, you’re doing an amazing job navigating a tough situation with creativity and grit!

    Best Regards, Laura Navaquin
    Investor | BRRRR Strategy Coach | Advocate for Creative Financing

    1Reply
  • Mitch Davidson
    Lender · Asheville, NC · Member since 2020 · 463 posts · 507 votes
    1y

    Hi Kaitlyn (@Daniel Williams). I'm local here in Asheville, and am happy to help you think on options, as well as helping you connect to whoever else might help you tease out plans and such. I'll message you my contact info. Also, we have a BP meetup tomorrow morning at 9AM at Bridge & Tunnel Coffee, and it's rather roundtable and discussion in approach. Thus I'm sure you'd get some great feedback, creative thought, and energy by joining us. No need to RSVP. 

    1Reply
  • Andrew Zamboroski
    Lender · Member since 2021 · 495 posts · 130 votes
    1y
    Quote from @Daniel Williams:

    Hi BP!
    My name is Kaitlyn and I’ve been listening to Bigger Pockets for the past few months and am learning as much as I can about real estate investing!
    I’m an Asheville native and recently inherited a home on 5 acres that I have been renovating for the past year. It’s almost finished and I intend to rent it out. Also on the property, is a detached garage and a 2 story barn, both which have electricity and are in great condition. 
    I'm looking to explore options on how to best use the equity and potential in my property. I've considered converting one of the buildings into an ADU, or subdividing and selling part of the land, or pulling equity out of the house to invest in another property. The house is paid off but I took out a $50k loan from a family member for the renovations that I need to pay back within the year.
    Since I don't intend to live in the home, and I've been on unemployment for 6 months due to Helene (just found a new job but my income wasn't what it was pre-flood), a DSCR loan seems like my best choice.
    I would love to hear from investors in the area on what my next steps would be to capitalize on this unique property. It is outside city limits near the French Broad River in Woodfin (no flood damage). Thanks in advance for any advice or ideas you have!  

    Laura did a great job going over some options! It’s does seem like a DSCR loan could work on the property given your income situation. It could be something worth looking into in order to payoff your family member. Congrats on the resilience and success!




    1Reply
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