New Rental Concept and would like opinions
So we are in closing on a property in Fairview, NC just east of Asheville. I wanted to discuss our ideas for the property as an STR and get some feedback and maybe a few other ideas. I have checked AirDna data and the area does well. There are multiple houses the same size that we comped out.
it’s a new construction, two story 3/2.5.It will be a king bed in the master bedroom, queen in the second bedroom, and two twins in the third bedroom. Not a huge fan of bunk beds and the layout of the house won’t accommodate more than 8 people comfortably. There is also a good sized loft on the second floor that will have a pull out couch. The living room on the lower floor is small so will just have couch and side chair.
There is a large back and side yard that only has a minor slope to it. So we are adding in a fire pit area, with chairs, hammocks, and string lights. There is a small back deck currently that will have a propane grill, dining table and chairs with some string lights above it as well. We will have corn hole, giant Jenga, horse shoes, for outside. Will also provide football, soccer, volley ball and a baseball and gloves. No bat lol. We want to expand the deck and add a jacuzzi next year. The loft and living room will have tvs with Netflix and Disney+. The loft will have one of those game systems that has 10,000 classic video games from snes to ps1 loaded onto it. There will be a wall of board games and one wall we are wanting to have our instagramable spot. It will be a large mountain mural.
We want to theme it according to the many outdoor activities in our area. So for wall art we found a bunch of artistic photos of everything to do around here, kayaking, white water rafting, camping, hiking, rock climbing, horse back riding, mountain biking, and motorcycle riding. These will be the wall art throughout the house to inspire the tenants to go out and enjoy the local area. For this reason we want to provide some basic gear such as inner tubes, hiking backpacks and trek poles, local hiking guides and town guides for Asheville, Black Mountain, Hendersonville, Lake Lure, Linville, and Chimney rock.
I’m trying to think of some other items we could provide. I don’t want to provided tents because they would need to be washed and bikes and kayaks can be rented. So any other little ideas would be appreciated.
We will have an in-depth guide book for the area as well and are creating an instagram and Facebook for people to tag their photos to be used on social media.
Any other games or equipment you would recommend. We want it to be family and kid friendly but not specific to families with kids. It needs to appeal to adults and groups as well. So the furniture and will be clean and not childish. But there are plenty of games and things that can be used by all.
Thank you all for your input. It is greatly appreciated and hopefully we will host you one day.
Quote from @Anne Jenkins:This is definitely the general consensus of the thread. I will remove the floats as there are a lot of rentals, the base ball and glove, and trekking poles. Most likely the hiking bag when I find gear rental. thank you all
Having been thru a couple of suits, I have learned that I should not provide extra things people can hurt themselves with. The more extras, the more chance of litigation.
How about a BBQ Smoker!? Tasty BBQ in the mountains. Mmm Mmm.
@Josh Myrick and @Jennifer Goodier: I'm an investor with a furnished monthly rental inside Asheville city limits (i.e., I could make a ton more doing STR), but I hope the city retains it's ability to forbid people from STR'ing entire homes inside city limits. If restrictions were lifted entirely I think it would create a race to the bottom for local STR rates, and would exacerbate the current housing crisis.
Quote from @Mitch Davidson:I would love to pick your brain on the monthly rental in the future. My property is a brand new construction close to Mission and I have wanted to try 1-6 month rentals for Mission Traveling nurse staff. I have a friend that works there as a nurse so was hoping to find some way to advertise within the hospital.
@Josh Myrick and @Jennifer Goodier: I'm an investor with a furnished monthly rental inside Asheville city limits (i.e., I could make a ton more doing STR), but I hope the city retains it's ability to forbid people from STR'ing entire homes inside city limits. If restrictions were lifted entirely I think it would create a race to the bottom for local STR rates, and would exacerbate the current housing crisis.
If you don’t mind me asking what it’s renting out for? My 3/2 is on a two year lease for 2k a month which is great.
Josh,
All I can say is wow. Just wow. Everything I thought of when I read the first section of your post you have already thought of and then some. I appreciate your passion to really make your property an experience. You’re going to absolutely SMASH it when you get up and running. Thanks for the quality post dude!
Hi @Josh Myrick. In my 4 years at it, with a furnished monthly approach you'll likely make double the gross revenue you would with LTR. And the expense for utilities, WIFI, maintenance of furnishings, and repair/maintenance at turn will total up to be less than the cost of repair/maintenance at turn for LTR. Meaning, the home is well preserved when people aren't moving their stuff in and out, and that saves you a bundle. Also, you'd likely be surprised that most of your clientele wouldn't be traveling nurse. That's what people think of first, but traveling nurses often have short contracts and often don't have a ton to spend. That all being said, I'm sure I'd have a different mix of people interested if my home was larger than a 1br. With a 1br, most applicants are single adults in some sort of a transition time. If I had a 3br, I'd likely have families in some sort of a transition, and perhaps more repair/maintenance expense. If I could change my approach, I probably wouldn't. Meaning I'd like to get more 1br in the future. Happy to connect by phone sometime.
Also, @Josh Myrick. Perhaps join us for our Asheville BP meetup this Wednesday evening at 6PM at Hi-Wire Brewing on 284 Lyman St.
Quote from @Mitch Davidson:
Also, @Josh Myrick. Perhaps join us for our Asheville BP meetup this Wednesday evening at 6PM at Hi-Wire Brewing on 284 Lyman St.
I would love to, but my wife just gave birth to twins and I have a 20 month old at home so I am swamped. All while planning this new property. Ha
Quote from @Josh Myrick:
Quote from @Mitch Davidson:
Also, @Josh Myrick. Perhaps join us for our Asheville BP meetup this Wednesday evening at 6PM at Hi-Wire Brewing on 284 Lyman St.
I would love to, but my wife just gave birth to twins and I have a 20 month old at home so I am swamped. All while planning this new property. Ha
That's a handful!
Quote from @Mitch Davidson:Yes. In the next month or two when they are sleeping through the night and I can actually schedule things again. I will come to the meetups. I appreciate all the info. Once I get this STR up an running and the kids are sleeping a partner and I are looking into buy another STR in Florida, possibly Panama City.
Quote from @Josh Myrick:
Quote from @Mitch Davidson:
Also, @Josh Myrick. Perhaps join us for our Asheville BP meetup this Wednesday evening at 6PM at Hi-Wire Brewing on 284 Lyman St.
I would love to, but my wife just gave birth to twins and I have a 20 month old at home so I am swamped. All while planning this new property. Ha
That's a handful!
Quote from @Jennifer Goodier:
Hello All @Josh Myrick. @Dorothy Bland Josh, I think you have a few misconceptions about STRs in Asheville that I'd like to clear up. First, Fairview is not a part of Asheville, so there are no restrictions unless you're coming up against neighborhood restrictions. Second, Asheville allows Short Term Rentals (less than 30 days) with a permit. Now Asheville has passed full kitchens inside the city. If you'd like to know whether a home sits inside the city limits and you must get a permit for it, check out the map link below. Also, I've written and keep updating an article on my website. It even talks about restrictions in nearby Woodfin.:https://www.divitiarealty.com/...
MAP of city limits AVL:
https://data-avl.opendata.arcg...
Please feel free to reach out with any other questions! - Jennifer
Thank you for the links, Jennifer! Very informative.
Awesome! You can go around and grab fliers from rental providers and just leave them in your printed house manual binder as well as adding info to your guidebook through the airbnb app :) Quote from @Josh Myrick:
Quote from @Zambricki Li:
Congrats!-Get professional photos, you only need a few artistic ones
-triple check you can STR, I see people doing 30 days'+ now because they didn't lock down a permit correctly. Mid term is ok as a backup though not ideal comparatively
-I would not do kayaks or any sporting equipment for liability reasons
- Things of value will break so maybe don't go too big with tech/hiking gear things a kid can break easy (foosball-great!)
-Don't use a bunch of white sheets, duvets, ect. Get grey something forgiving
I keep it simple. Even things like a grille means your housekeeper has to deal with it. Guests do not maintain the home over basic tidiness. You will end up paying extra to housekeeper to clean grille, clean hot tub, put back all the loaner toys. Once you provide an amenity it needs to work for every guest, or you will be refunding people. If one tent pole goes missing and the next guest can't use it, they will complain and you will be dealing with it. If you don't offer it, it can't break.
I've been running out of state STR's for years and have learned the key is simplicity. If you are in a good location and the space is clean and fresh you should have no issues and no need to go crazy on extras. GOOD LUCK
That makes a lot of sense. I’m trying to find gear rental stores in the area which I know there is. This way I don’t have to provide these little things. Great input. Thank You.
Hi Josh, Came across this article from 1 year ago, today while I was researching Fairview, NC STR rules. Did you ever get yours up and running? How is it going for you? Please share what you've learned on regulations for permits or not needed in Fairview....
Thank you for any feedback!
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@Josh Myrick I am curious too given what else you have going on how this went for you?
Sorry missed a few notifications on this post. We are up and running. Coming up on our first year and doing phenomenal. Looking to beat 60k gross and we estimated 45-50k.
Quote from @Kim Aaron:So there are no permits. But there is a tax form with the county that has to be filled out. Super simple.
Hi Josh, Came across this article from 1 year ago, today while I was researching Fairview, NC STR rules. Did you ever get yours up and running? How is it going for you? Please share what you've learned on regulations for permits or not needed in Fairview....
Thank you for any feedback!
We also started a property management company for STRS and are currently managing 8. I was able to quit my full time job back in April.
Quote from @Josh Myrick:
We also started a property management company for STRS and are currently managing 8. I was able to quit my full time job back in April.
Congrats man! That's pretty amazing. Your market supports it!
If you don't mind me asking what was the original cost to build the house in Fairview? We have wanted to break into the market but it's so expensive. We have vacationed down there about 7 times and got married in Asheville! We bicycled from the city to the top of Mt. Mitchell earlier this year. Good times.
Quote from @Jaron Walling:That’s a heck of a trip. We bought a 90% complete house from a builder. We own another of their homes as an LTR and they are pretty nice. They are cookie cutter but they use nice materials. It was 399k for a 3/2 1404 sq ft in aug of 2022. Bought almost the exact same house from builder with the same materials and finishes for 299k in dec of 2020. Lol. It’s not killing it but we are making money. It was mainly bought as a house for my grandparents to come visit grand babies and turned into an STR: its a tight margin market right now even for STRS.
Quote from @Josh Myrick:
We also started a property management company for STRS and are currently managing 8. I was able to quit my full time job back in April.
Congrats man! That's pretty amazing. Your market supports it!
If you don't mind me asking what was the original cost to build the house in Fairview? We have wanted to break into the market but it's so expensive. We have vacationed down there about 7 times and got married in Asheville! We bicycled from the city to the top of Mt. Mitchell earlier this year. Good times.
@Josh Myrick That's great and I figured you would be closer to $500k so that's not bad! We have glanced at properties around Asheville and Weaverville but we're not in a position to buy. Our experience is with distressed deals and $400k can go a long way in our market.
We have stayed in a few STRs in Asheville and they were all ADUs. It seems like the only way to own STRs within the city limits.
Quote from @Jaron Walling:Yea there are a lot of restrictions for StrS in Asheville. But there is an active court case to block their ability to ban them. So here’s hoping. But 400k lately basically guarantees distressed properties around here. It’s hard to find good investments right now.
@Josh Myrick That's great and I figured you would be closer to $500k so that's not bad! We have glanced at properties around Asheville and Weaverville but we're not in a position to buy. Our experience is with distressed deals and $400k can go a long way in our market.
We have stayed in a few STRs in Asheville and they were all ADUs. It seems like the only way to own STRs within the city limits.