Current Rules and Regulations

[Dustin Pendel]

A rookie out-of-state investor looking to get started with STR, I am currently looking into the Asheville, NC market. I know it has great year-round potential. I see this as both the destination factor with all the amenities the city offers, along with the experience of being in the city or going to the mountains. Would any BP investors in this market share regulatory insights on what to do to get approved for STR, am I better to focus search out of the city limits, or has Asheville started allowing out of state investors that are not permanently dwelling in the residence to buy in the city limits. Any insight would be greatly appreciated if you can only provide sources to look for the information, I have no problem doing the leg work. Everyone's time is valuable.

Thanks in Advance   

[Mitch Davidson]

Hi @Dustin Pendel, I highly recommend connecting more with @Matt Payne regarding markets and neighborhoods here.

I live inside Asheville city limits, and have a furnished monthly rental inside city limits, as well as another STR elsewhere in the region. Asheville allows for a "homestay" inside city limits, meaning owner-occupants can rent out a portion of their home, but does not allow STR of a entire home.

Perhaps only 2/3 of Asheville is inside city limits. You can see a map of city limits here: https://www.ashevillenc.gov/de...

Most of what you'll find in that remaining 1/3 or so doesn't have a view, a cabin feel, a water feature, a trail, etc. Thus, I would recommend instead considering a border area, within 45 minutes or so of Asheville, such as Mars Hill, Waynesville, Alexander, Weaverville, Black Mountain, Lake Lure, Brevard, Pisgah Forest, etc. And I would be careful about spending much time analyzing properties that are in an HOA, as many HOA's here have recently banned STR.

Regarding seasonality, I had the same concerns in the past, but found that my friends were staying booked through the winter. Some of your competition will take down their listings during the winter. And you'll still have plenty of people that want to get away to a quiet place in the mountains. It helps if you make things more attractive in the winter, by way of a hot tub, allowing pets, having a great firepit, having other fund and uncommon things to do at the home, etc.

If you need help thinking through your financing strategy, or with preapproval, I'm happy to help. We can do conventional, DSCR, jumbo, etc.