Handyman · Charlotte, NC · Member since 2021 · 21 posts · 14 votes
My wife and I have been looking to invest in a short term rental in the mountains of Western NC and am looking for advice for good performing areas in terms of Airbnb/vacation rentals in Western NC that are affordable. Asheville would be Ideal as we used to go to college there and are very familiar with the area, but it is very expensive in Asheville. Any suggestions on surrounding areas that are attractive to tourists and affordable? Our budget would be roughly $200,000. Any suggestions offered would be appreciated, or if any agents in the area are free to reach out that would be great!
Real Estate Broker · Charlotte, NC · Member since 2014 · 285 posts · 248 votes
4y
Asheville has a near-ban on all Short Term Rentals, so don't even look in the city limits because it's almost impossible to get a permit. Most people looking for an STR shop right outside the city limits. However, at your price point, I'll tell you now it'll be challenging. I'm a real estate broker that exclusively specializes in STRs in Western NC and there are definitely areas in the mountains that most people would never think perform well, but actually do great on the STR market. I have a full license to Airdna for the entire state, and I use it every day to analyze properties quickly. It's basically what I do all day, every day.
A market that would be very competitive on the STR market, and still be in your price range is the Spruce Pine/Burnesville/Little Switzerland area. It's extremely under-served on Airbnb and VRBO, and occupancy rates are very high compared to more popular areas. Being that it's not really known as a tourist destination (but features some of the highest elevations east of the Mississippi River), prices are still very affordable offering very good ROI.
There are several other markets in Western NC that are interesting, and I'm looking all the time, feel free to reach out if you need some help.
There are other factors you need to consider, like how you're financing.. if you're using a mortgage, most properties with a killer ROI will NOT appraise.. meaning you're coming out of pocket more than than you budget, and then making repairs (if needed) and furnishing. The upstart cost can sneak up on you if you're not prepared. (at the risk of sounding like a realtor) If you have that much in cash, you'll get a much better return leveraging that money to get more bedrooms. The whole name of the game in STRs is how many people can you sleep comfortably. Bedrooms per dollar is a huge metric that I use for my clients. The more bedrooms you can get the better. It's even better if you can get a second living quarters or two en suites bedrooms. Uniqueness is key also. It's a nuanced business, but I love it. I learn something new every day doing this, but I'm happy to help if you want.
Lender · Mesa, AZ · Member since 2018 · 69 posts · 24 votes
4y
Hey Matt if you haven't already check Airdna I would take a look at their website and see their ratings for the surrounding areas in Western NC. They break down several key indicators based on current data in all markets throughout the world.
Buford, GA · Member since 2019 · 16 posts · 9 votes
4y
Make sure to identify those areas around Asheville where STRs are restricted or not allowed. Don't want to buy something that you can't rent. Good luck!!!
Real Estate Broker · Charlotte, NC · Member since 2014 · 285 posts · 248 votes
4y
Asheville has a near-ban on all Short Term Rentals, so don't even look in the city limits because it's almost impossible to get a permit. Most people looking for an STR shop right outside the city limits. However, at your price point, I'll tell you now it'll be challenging. I'm a real estate broker that exclusively specializes in STRs in Western NC and there are definitely areas in the mountains that most people would never think perform well, but actually do great on the STR market. I have a full license to Airdna for the entire state, and I use it every day to analyze properties quickly. It's basically what I do all day, every day.
A market that would be very competitive on the STR market, and still be in your price range is the Spruce Pine/Burnesville/Little Switzerland area. It's extremely under-served on Airbnb and VRBO, and occupancy rates are very high compared to more popular areas. Being that it's not really known as a tourist destination (but features some of the highest elevations east of the Mississippi River), prices are still very affordable offering very good ROI.
There are several other markets in Western NC that are interesting, and I'm looking all the time, feel free to reach out if you need some help.
There are other factors you need to consider, like how you're financing.. if you're using a mortgage, most properties with a killer ROI will NOT appraise.. meaning you're coming out of pocket more than than you budget, and then making repairs (if needed) and furnishing. The upstart cost can sneak up on you if you're not prepared. (at the risk of sounding like a realtor) If you have that much in cash, you'll get a much better return leveraging that money to get more bedrooms. The whole name of the game in STRs is how many people can you sleep comfortably. Bedrooms per dollar is a huge metric that I use for my clients. The more bedrooms you can get the better. It's even better if you can get a second living quarters or two en suites bedrooms. Uniqueness is key also. It's a nuanced business, but I love it. I learn something new every day doing this, but I'm happy to help if you want.
@Derek Idstein Did you find that people were going above asking + appraisal gaps etc. to grab properties there?
My property was a FSBO so I was able to work direct with the seller. From talking with local realtors, it seems listed properties are still receiving multiple offers, however appraisals have caught up with the appreciation and they are seeing a lot less need for appraisal gaps as they were earlier in the year.
Investor · Raleigh, NC · Member since 2019 · 314 posts · 280 votes
4y
I've got 5 out in Western NC in surrounding towns around Asheville. Definitely opportunities in the region. I will recommend @Ryan Howell as he has helped me and a few others land some properties. $200k is possible but it will take alot of research and maybe some off-market searches as many looking for that price point. Happy to answer anything further!
Lender · Asheville, NC · Member since 2020 · 463 posts · 507 votes
4y
@Matthew Jackson, for your price point, I too would look at the markets that @Levi Bennett and @Derek Idstein mentioned. If you can increase to $300K, you can find something small that is a little closer to Asheville. For example, many of us feel that Old Fort has a bright future, due to proximity to Black Mountain, due to the new 40 miles of mountain biking trails being developed between Old Fort and Black Mountain, due to proximity to Lake Lure, 2 new breweries, etc. And compared to Burnsville, an area I really love personally, it'll likely be a tad easier to get contractor and cleaner help if you're a little closer to Asheville. Some parts of Old Fort are just as remote though. And good-looking listings are hard to come by. Another great play would be the Brevard area, including nearby towns. You get a nice, quaint downtown, many great options for mountain biking and hiking, proximity to the airport, proximity to other towns like Hendersonville, breweries, etc. If you want help thinking on financing strategy, I'm happy to chat sometime.
Rental Property Investor · Boone, NC · Member since 2015 · 291 posts · 88 votes
4y
@Matthew Jackson I live in Boone, work in blowing rock.
The market is still very competitive. There is currently a handful of listings under 350k in the Boone area.
With your budget, you would probably have to go a little farther as mentioned by others in this thread.
Because everything is so expensive, I decided that I would build a 400 SF cabin myself to rent out, not taking any debt out. Curious to see how it will do.
Handyman · Charlotte, NC · Member since 2021 · 21 posts · 14 votes
4y
@Tristan S. Thats very cool that you are building your own cabin! would you mind if I reached out privately and talked more about this? Building my own cabin would be something I'd be very interested in come time.
Rental Property Investor · Hendersonville, NC · Member since 2016 · 446 posts · 412 votes
4y
@Matthew Jackson - There are a lot of great areas. $200k is tough, but not impossible. You may want to consider value add/BRRRR or partnering. You can focus on something small as well. There are a lot of great towns around Asheville that work well. My advice is don't get too rural.
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
4y
@Matthew Jackson Lots of great options over that way. Just like you we love Asheville; actually getting married there this year so yaaaa the demand is high but I'd consider other locations giving our market.
Robbinsville, NC is a personal favorite of mine. It's has plenty to offer and real estate is way cheaper. If you're into motorcycles, cycling, or sports cars you'll love the roads. There's adventure trails/gravel roads too. I'd look for property with a usable garage to keep stuff dry if the weather sucks. There's hiking, waterfalls, and nice views all within a 30 min drive.
Investor · Richmond, VA · Member since 2013 · 47 posts · 11 votes
4y
@Matthew Jackson
Hey Matt- I am a fix and flip investor in Asheville area. We just bought a property in Black Mountain, not far outside of DT. We are fixing the property up then plan to do STR with this one. The area is popular for short term rentals with a handful of them in the same neighborhood. 200k seems tough, but we did buy this one with an extra lot to help to make numbers work. Haven't decided what we will do lot… either build small str or sell it. Feel free to message me to talk more.
Definitely some great advise from the posts above. As a local realtor, I see the market every day and can tell you that there are options out there in many towns close to Asheville. Mitch makes a good comment about raising your minimum to $300k as that will give you more options. But if you are willing to wait for a while, there will be choices at the $200k range. I would expect to sink some cash upfront though on repairs. Inventory for that price point right now is mostly fixer uppers. Feel free to reach out if I can help in any way.