Great Smoky Mountains - North Carolina Side?

Question

Hi all, I am an investor out of New Orleans and have a steady cash flowing duplex and looking to expand. I have been eyeing the Smokies for awhile now (and it seems like every single STR investor in America has as well) and it is almost impossible to get a place near Gatlinburg right now. I have been outbid on four different cabins the past month. I am still determined and not going to give up but man this is tough. So, I am looking to pivot and have been exploring the NC side of the mountains in areas like Maggie Valley, Bryson City, Canton etc.. I have been doing a lot of research. How are STR investors doing in that area? What is the best town for an STR over there? Do I need to be somewhat close to Asheville? Any other areas to consider? I have over 120k in capital and ready to pounce. Just trying to get some opinions. Currently in analysis paralysis! Thanks so much for the help!

Kelsey Maren · Answer

NC side is definitely a lower entry point than the Gatlinburg market and although most markets are hot around the country you'll probably find it easier to get a property under contract here too.  I just purchased a property for STR near Asheville, but also looked at the Bryson City and Boone area.  Let me know if you'd like to chat!

Mitch Davidson · Answer

@Cale Jacobsen, I agree with the above. In most of our many great small towns you'll have just a much competition, and you'll still have to bid over ask, but the price point will be lower in many of the markets. By comparison, some of our markets have far less activity options compared to Gatlinburg/Sevierville/PF (such as water parks), especially if you're far away from Asheville. That isn't a turn off for many tourists though, who would rather have something quieter and less busy. And beware that some of our smaller markets are hard to get good help in (i.e., cleaning and maintenance).

If you want to start getting a feel for our various markets, I would recommend creating a saved search for each town or area on Zillow's app, using the draw on map tool. For example, you might have one for Black Mountain, another for Lake Lure. As you watch the saved searches and dive into properties that interest you, you'll get a feel for that town's product and pricing. Then, when you see something you really like, you can look at comps on AirBNB, and if you're really interested you can create a PriceLabs dashboard to get more intel about nightly rent, occupancy trends, etc. You can also scrape some averages from AirDNA for free, but I think their numbers are a little suspect at times. They can still be helpful, when for example, you see that average nightly rent in town A is $90 lower than than of town B.

Happy to help further if you like, including financing and strategy.

Kyle H. · Answer

@Cale Jacobsen

There are plenty of us making $ on this side of the mountain.  My entire portfolio is based in Bryson City and the market has been very good to us, and there are still a "few" cash flowing properties to be had direct off the MLS.  I would consider Bryson to be on a 10 month cycle for rental occupancy.  January and February are basically weekend only bookings, however the remainder of the year runs at high occupancy.  Like anywhere else seeing investors pouring in, location, amenities and standing out from the crowd are paramount to making $.

Michael Blum · Answer

@Cale Jacobsen

Maggie Valley, Waynesville, and Lake Junaluska are definitely extremely hot right now. You will likely run into what you have already been experiencing in terms of multiple offers there too though. If you are interested in options further east, there are definitely some great areas around Asheville with less competition and great opportunity.

Great Smoky Mountains - North Carolina Side?

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