Investing in Asheville, NC
Rental Property Investor · Wake Forest, NC · Member since 2016 · 186 posts · 78 votes
Investing in Asheville, NC
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Investor · Richmond, VA · Member since 2013 · 47 posts · 11 votes
10yI am a rehabber in Asheville. Its a tough market if you don't know your neighborhoods, as they vary drastically! Rent prices are high and there is not enough housing in general to support the growing population. New builds are through the roof right now ( pun intended:)) This creates a lot of competition.
There are some areas that are turning and would make for good rentals as the house values are not as high as others, but still close to downtown and therefore high rents. Also because the market is climbing, look slightly outside city limits as the more affordable housing will continue to get pushed further out.
I am in/viewing properties constantly! You really have to in order to get familiar and as @Account Closed stated...."its a little nuts out there lately" Its spring/summer fever and everyone wants a piece of Asheville.
Im always open to talk more details if interested, send me a message!
40 Replies
- Saint Paul, MN · Member since 2016 · 30 posts · 7 votes10y
Hi Nikki, I am considering investing in buy and hold properties in Asheville also and have been doing a lot of homework on the area. The bottom line is that Asheville has been a trending location for many years now and property values have gotten higher as a result. Limited inventory, partly due to the number of people wanting to live in Asheville and partly due to the fact that due to the mountainous terrain, has also helped to move prices higher. I have gotten feedback that getting contractors can be a challenge making rehab costs higher. In the end, finding a property that will cash flow can be tough. I don't know what I am ultimately going to do but I am planing a trip to Asheville and Charlotte in July to familiarize myself more with market. I am now casting a wider net that includes the areas surrounding Asheville like Hendersonville and Black Mountain. I am even considering neighborhoods in and around Charlotte like Gastonia, though I don't really want to live that far from my rental properties. Lots to consider. Good luck to you!
- Asheville, NC · Member since 2016 · 34 posts · 8 votes10y
Hello. I live here in Asheville. I'm closing on my first rental in 2 weeks here in town. Casey is correct on it being a hard time right now to break in. Properties are at an all time high price point and many people are moving here from out of area. But still possible to find good ones. If I can answer any questions please let me know!
- Rental Property Investor · Wake Forest, NC · Member since 2016 · 186 posts · 78 votes10y
@Casey Nordendale Have you bought any properties there yet? We don't mind traveling as we only live about 4 hours away. I have been through the area a few times but have not really had the chance to get to know it as well as I want. I know a few people who have bought investments there when Asheville first started gaining popularity. As far as contractors, I am not too worried. I already have contractors in place if I need. We also aren't looking for rehabs if we can help it. I also am interested in the surrounding areas of Asheville as well. Even vacation rentals is something I am interested in as I know people who spend a few grand a year just to spend about a week in Asheville. Charlotte is a great place to look. There are only a few places I really would invest there. Concord is a great area as well and I know a few people who invest heavily there.
- Rental Property Investor · Wake Forest, NC · Member since 2016 · 186 posts · 78 votes10y
@Account Closed is the rental market lucrative there? I know many are doing flips but haven't really met anyone doing rentals. We are mainly looking for single family or multifamily.
- Real Estate Agent · Concord, NC · Member since 2016 · 28 posts · 5 votes10yConcord and Kannapolis are seeing a lot of investment activity. The buy/sell market is hot and the rental market is on fire. Rentals are getting snatched up in a matter of days for sfr's.
- Rental Property Investor · Wake Forest, NC · Member since 2016 · 186 posts · 78 votes10y
@Eric Davey Yes Concord is by far the best for rentals. In my opinion its way better than Charlotte.
- Raleigh, NC · Member since 2015 · 40 posts · 6 votes10yHow is the Hickory or Blowing Rock area?
- Rental Property Investor · Charlotte, NC · Member since 2016 · 293 posts · 88 votes10y
@Eric DaveyWhat kind of returns can you expect in the Concord area? Know of any small apartment buildings?
- Real Estate Agent · Concord, NC · Member since 2016 · 28 posts · 5 votes10y
Hey @Melissa N., the roi can vary between amount of units and ultimately the final sales price. I do see a handful of properties, perhaps i can put you on an alert?
- Rock Hill, SC · Member since 2015 · 1k+ posts · 597 votes10y
Originally posted by @Nikki Grizzle:
We are thinking of making a trip or two out to Asheville and get to know the area a little bit more. Is anyone investing in that area. So far I have heard mixed reviews. We are looking mainly for tenant occupied homes or homes that may need minor rehab like pain, flooring, new doors etc to make rent ready. What are your thoughts on the area?
I don't invest In Asheville but my wife and take a lot of day trips their. Awesome town and my self looking for a little get away place to buy for us. Incredible food scene as well. My wife graduated from School there in Black Mountain. Most Markets in NC you will find same thing hard to find good solid deals.
Does not matter if you are Concord, Monroe, Kannapolis, Salisbury all suburbs of Charlotte NC.
Good deals are just fewer and harder to find. The lower end is still available in most markets.
@Melissa N. if a multifamily makes the MLS promise it is not worth it. As if it is a good deal most of the agents have buyers waiting on them.
Alex
- Rock Hill, SC · Member since 2015 · 1k+ posts · 597 votes10y
Originally posted by @Nikki Grizzle:
@Eric Davey Yes Concord is by far the best for rentals. In my opinion its way better than Charlotte.
Nikki
Just Curious how do you compare Charlotte a major city and Concord basically a secondary market of Charlotte. Can you clarify why it is better. Just curious on your opinion. I own rentals in both areas, and sold rentals in both markets.
- Rock Hill, SC · Member since 2015 · 1k+ posts · 597 votes10y
Originally posted by @Eric Davey:
Concord and Kannapolis are seeing a lot of investment activity. The buy/sell market is hot and the rental market is on fire. Rentals are getting snatched up in a matter of days for sfr's.
Eric
True basically in 60 mile radius of Charlotte anything that makes sense even some that don't make are being scopped up.
Keep in mind our entry point is still lower then most markets. So reguardless of how low our returns get. Folks still ind them attractive. Or you can buy low end deals and see 15 % plus returns ( just being humorous now )
Alex
- Asheville, NC · Member since 2016 · 34 posts · 8 votes10y
Originally posted by @Nikki Grizzle:
@Account Closed is the rental market lucrative there? I know many are doing flips but haven't really met anyone doing rentals. We are mainly looking for single family or multifamily.
The rental market is very strong here right now in my opinion. There are not enough rentals and it has driven prices up for rent. I'm closing on my first 2/1 rental prop next week and am excited to do more!
- Rental Property Investor · Wake Forest, NC · Member since 2016 · 186 posts · 78 votes10y
@Alex Franks I think there are actually many good deals to find but all depends on what you are looking for and what type of renter you are targeting. So far are finding deals on a weekly basis. Since funding is our main issue we can't snatch most of them up as quick as others but we haven't had any issues finding good deals at all. If you are looking in the main markets then yes, there is a lot of competition.
As far as Concord, I just like the fact it is easier to find deals that appeal to us. Charlotte is a hot spot. Same as Raleigh. Its to the point where I know many people leaving the Charlotte area and moving to places like Concord, Gastonia and Matthews.
I haven't personally did any buy and holds in the Concord area but have been following a few others who have who no longer invest in Charlotte. I found more homes that appeal to us in the other areas. Some with renters already in place and others that are rent ready in desirable areas. Most of the people I know who used to live in Charlotte have moved outside and prefer to commute for work.
- Rental Property Investor · Wake Forest, NC · Member since 2016 · 186 posts · 78 votes10y
@Account Closed congratulations on your first rental! Now I am ready to make my trip to Asheville.
- Contractor · Candler, NC · Member since 2016 · 43 posts · 15 votes10yAs a new construction builder in the Asheville area I have to say that market is melting hot. MLS listings are being snatched up before people have time to check them out. Most of the buyers are moving to the area and find the area less expensive then their respective locals, in return driving the price up locally. My focus is on nonexistent build able land at the moment. I would further suggest areas like: Weaverville & Waynesville or Cullowhee if student (university) investing is your thing. IMHO, there are few deals "in" Asheville with better opportunities within a 30 mile drive. Best of luck and I look forward to the feedback from your personal experiences.
- Investor · Asheville, NC · Member since 2015 · 187 posts · 112 votes10y
Agreed. Beat-to-**** houses that used to sit on the market forever at $60k are now selling in two weeks for $90k. It's a little nuts out there lately. :)
- Rental Property Investor · Wake Forest, NC · Member since 2016 · 186 posts · 78 votes10y
@Jonathan Landry We definitely don't want to be in the student (university) market. We are absolutely fine looking outside within driving distance, no more than 1 hour away. I'll also check out those other places. I have been to Wearverville before but haven't been in a few years.
- Rock Hill, SC · Member since 2015 · 1k+ posts · 597 votes10y
Originally posted by @Nikki Grizzle:
@Alex Franks I think there are actually many good deals to find but all depends on what you are looking for and what type of renter you are targeting. So far are finding deals on a weekly basis. Since funding is our main issue we can't snatch most of them up as quick as others but we haven't had any issues finding good deals at all. If you are looking in the main markets then yes, there is a lot of competition.
As far as Concord, I just like the fact it is easier to find deals that appeal to us. Charlotte is a hot spot. Same as Raleigh. Its to the point where I know many people leaving the Charlotte area and moving to places like Concord, Gastonia and Matthews.
I haven't personally did any buy and holds in the Concord area but have been following a few others who have who no longer invest in Charlotte. I found more homes that appeal to us in the other areas. Some with renters already in place and others that are rent ready in desirable areas. Most of the people I know who used to live in Charlotte have moved outside and prefer to commute for work.
I just don't think most of what is out there makes financial sense but then again what do I know. With that being said. We are building 100 turn key units a quarter in 45 mile radius around Charlotte. I also build retail on the SC side 3500 to 5500 sq ft. We are in plans to build a 92 unit apartment building or town houses still under discussing.
Should hit 100 turn key in Columbia SC by Dec but not over joyed on that market. So on pace to build 500 turn key rentals by May 2017. Eventually we are setting up in Raleigh, Winston Salem, and Goldsborough. I told a lot of folks when the market screams at you. It is cheaper to build then buy you build. Again I am not as smart as a lot of folks here. Been buying or selling for 16 years in NC , SC , Geogria , Florida. So I learned just a bit through the years. Still learning and realizing how little I know.
As for good deals 2009 -2013 was the time to buy in our markets. Most of what is left over is over priced, or the bottom of the barrel to say. Still good deals here reguardless because of our entry point. Just a bit harder to find them now. Pretty much cant go wrong in both NC and SC with growth factor in both states . Now I am sure some folks will jump on and discuss how good the low end properties are and what high returns. There is no longevity in those types of deals with a poor economy ( basically lower end folks cant afford to rent) yet again with our market they work.
Just my two cents take it for what it is worth
Alex
- Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes10y
@Jonathan Landry and @Account Closed have it exactly right. This is my neck of the woods and price vs. return is ridiculous right now on rental property. If you want to invest here you want to focus on raw land or turnkey construction sales, because you would be really lucky to get 1% on anything right now - that's how hot the market is. If you had picked up some properties when the bottom came out from 08-10, you'd be doing a happy dance right now, but otherwise you are going to be buying at what I think is (almost) the top of the market.
Skyline Properties - Real Estate Investment Specialist · Los Angeles, CA · Member since 2016 · 24 posts · 7 votes10y
@Nikki Grizzle Are you interested in Tenant Occupied Properties in Florida? Property management company takes care of majority of all your responsibilities as the owner and they deposit rent into your bank account every month.
- Rental Property Investor · Wake Forest, NC · Member since 2016 · 186 posts · 78 votes10y
Originally posted by @Alex Franks:
Originally posted by @Nikki Grizzle:
@Alex Franks I think there are actually many good deals to find but all depends on what you are looking for and what type of renter you are targeting. So far are finding deals on a weekly basis. Since funding is our main issue we can't snatch most of them up as quick as others but we haven't had any issues finding good deals at all. If you are looking in the main markets then yes, there is a lot of competition.
As far as Concord, I just like the fact it is easier to find deals that appeal to us. Charlotte is a hot spot. Same as Raleigh. Its to the point where I know many people leaving the Charlotte area and moving to places like Concord, Gastonia and Matthews.
I haven't personally did any buy and holds in the Concord area but have been following a few others who have who no longer invest in Charlotte. I found more homes that appeal to us in the other areas. Some with renters already in place and others that are rent ready in desirable areas. Most of the people I know who used to live in Charlotte have moved outside and prefer to commute for work.
I just don't think most of what is out there makes financial sense but then again what do I know. With that being said. We are building 100 turn key units a quarter in 45 mile radius around Charlotte. I also build retail on the SC side 3500 to 5500 sq ft. We are in plans to build a 92 unit apartment building or town houses still under discussing.
Should hit 100 turn key in Columbia SC by Dec but not over joyed on that market. So on pace to build 500 turn key rentals by May 2017. Eventually we are setting up in Raleigh, Winston Salem, and Goldsborough. I told a lot of folks when the market screams at you. It is cheaper to build then buy you build. Again I am not as smart as a lot of folks here. Been buying or selling for 16 years in NC , SC , Geogria , Florida. So I learned just a bit through the years. Still learning and realizing how little I know.
As for good deals 2009 -2013 was the time to buy in our markets. Most of what is left over is over priced, or the bottom of the barrel to say. Still good deals here reguardless because of our entry point. Just a bit harder to find them now. Pretty much cant go wrong in both NC and SC with growth factor in both states . Now I am sure some folks will jump on and discuss how good the low end properties are and what high returns. There is no longevity in those types of deals with a poor economy ( basically lower end folks cant afford to rent) yet again with our market they work.
Just my two cents take it for what it is worth
Alex
I understand Charlotte is still a great area for investing but it just is not the area for us. We are solely looking at single family only and most everyone I know is leaving Charlotte and choosing to commute. I just know many investors have migrated away from Charlotte the same way many have migrated away from Raleigh. We aren't really into commercial or apt buildings. We also are not big fans of major city areas as many people are moving to the outer areas. And yes the prices in those areas are inflated. The deals that are worth it are being snatched up by investors who have that solid cash and sometimes willing to close without doing any due dilligence making the closing faster.
- Rental Property Investor · Wake Forest, NC · Member since 2016 · 186 posts · 78 votes10y
Originally posted by @Andy Audate:
@Nikki Grizzle Are you interested in Tenant Occupied Properties in Florida? Property management company takes care of majority of all your responsibilities as the owner and they deposit rent into your bank account every month.
We arent really familiar with the Florida area and are just getting into the VA market. Also, we prefer not to use property managment until we absolutely have too many rentals to attend to. We already have an account for rent payment as well.
- Investor · Richmond, VA · Member since 2013 · 47 posts · 11 votes10y
I am a rehabber in Asheville. Its a tough market if you don't know your neighborhoods, as they vary drastically! Rent prices are high and there is not enough housing in general to support the growing population. New builds are through the roof right now ( pun intended:)) This creates a lot of competition.
There are some areas that are turning and would make for good rentals as the house values are not as high as others, but still close to downtown and therefore high rents. Also because the market is climbing, look slightly outside city limits as the more affordable housing will continue to get pushed further out.
I am in/viewing properties constantly! You really have to in order to get familiar and as @Account Closed stated...."its a little nuts out there lately" Its spring/summer fever and everyone wants a piece of Asheville.
Im always open to talk more details if interested, send me a message!
- Investor · Asheville, NC · Member since 2015 · 187 posts · 112 votes10y
Second all that- very dynamic and it takes studying the market, knowing each neighborhood's value both as rentals and flips, but there are pockets here and there that are undervalued IMO.
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