Looking to invest in STR property in either West NC, or East Ten.
Hello BP family!
My husband & I are looking to invest in a SFH in either West NC or East Tennessee, our goal is to buy near the Smokey mountains and run a STR until we move into it years from now.
Would love any insight on personal experiences in the 2 markets, if one is more favorable then the other etc. I am a huge fan of Air DNA as we already run an air bnb in San Diego. East Tennessee does do better then west NC but I'm finding better properties acreage and price wise in NC. Acreage is a deal breaker as we will eventually turn it into a homestead of us.
Also, looking for advice, insight on running a STR from the other side of the country. I'm picking up Avery Carl's guide to short term rental etc.
Also looking for potential agents, property manager leads etc. in those areas as that will affect our budget and will help in assessing the deals.
thank you!!
A better strategy IMO is come out here and assess the areas yourself over several trips before you buy anything. Since you want to live in this thing one day are you going to be happy in a STR community?
We are looking for at least 5 acres, it's easier finding that in NC for our budget as opposed to Tennessee
Yes we are planning on visiting for a few weeks in September to assess areas ourselves. Looking for agents and property managers to meet with as well while we are out there.
Any leads will help!
thanks
Will you have an income when you move out here?
Tennessee is cheaper living than NC. Sales tax rate is higher but there's no income or personal property tax. Property taxes on houses and land are a lot cheaper than NC. Gasoline is cheaper. Consumer goods cost about the same.
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If you're going to move into it why not just pick the market you'd rather live in?
In terms of living, there are some advantages to TN as a state, but you're going to be able to get a much nicer place with a lot more land in WNC for the same amount of money.
Quote from @JD Martin:
Will you have an income when you move out here?
Tennessee is cheaper living than NC. Sales tax rate is higher but there's no income or personal property tax. Property taxes on houses and land are a lot cheaper than NC. Gasoline is cheaper. Consumer goods cost about the same.
Seems that NC property taxes are pretty cheap too?
Quote from @Jon Martin:
Quote from @JD Martin:
Will you have an income when you move out here?
Tennessee is cheaper living than NC. Sales tax rate is higher but there's no income or personal property tax. Property taxes on houses and land are a lot cheaper than NC. Gasoline is cheaper. Consumer goods cost about the same.
Seems that NC property taxes are pretty cheap too?
Not as cheap as TN in general. Obviously there are exceptions. I lived in TN and worked in NC for 20 years because the cost of living was so much cheaper, including property taxes. One reason is that there are generally more taxing districts in NC than in TN. Many NC locations have fire districts, stormwater districts, separate school taxing districts, library districts, in addition to your normal town/city/county taxing entities. TN has very few taxing districts; generally you have county and city taxes. You pay both if you're in the city, county only if you're outside. Pretty simple setup.
Hi @Angie Poonka. I concur with @JD Martin that you really should visit the many small towns in the region to get a feel for what you're comfortable with, where you'd like to live, etc. There are tremendous differences when comparing Gatlinburg and surrounding to western NC, and the differences vary one town to the next. For example, greater Gatlinburg has a pretty robust infrastructure for STR, which can make startup easier, but the market doesn't appeal to every tourist that wants to visit our region. In smaller western NC markets, for example, even those that surround Asheville, tourists can often have an experience that is quieter, more private, and less expensive when compared to Sevierville, Gatlinburg, PF, etc. And those kind of benefits would seem more appealing regarding your plans to move into the place in the future (meaning, you may not enjoy living in a market that is super focused on STR). Regarding property and income tax, I wouldn't over emphasize that. Property taxes are super cheap in smaller NC counties, and really throughout most of western NC. And state income tax will apply if you move here, but it won't be too steep. Also, for what it's worth, the state income tax in NC seems to help us have better roads, schools, etc. compared to some states that lack state income tax. Happy to discuss further if you like, and to help you think on financing plans as well.
thank you everyone for your inputs! I've been able to connect with some great agents in Tennessee so far since my original post. We are looking for an agent in NC, if anyone has any leads we would most appreciate it!
and thank you @Mitch Davidson
We do like the idea of still being close enough to the attractions to have a successful STR but also don't want to live in a super crowed/ touristy area ourselves. Trying to find the happy medium. Are there any cities in NC that you would highly recommend? I've heard great things about Pisgah Forest, Cullowhee, Cherokee, and Tuckasegee.
Quote from @Angie Poonka:
thank you everyone for your inputs! I've been able to connect with some great agents in Tennessee so far since my original post. We are looking for an agent in NC, if anyone has any leads we would most appreciate it!
and thank you @Mitch Davidson
We do like the idea of still being close enough to the attractions to have a successful STR but also don't want to live in a super crowed/ touristy area ourselves. Trying to find the happy medium. Are there any cities in NC that you would highly recommend? I've heard great things about Pisgah Forest, Cullowhee, Cherokee, and Tuckasegee.
Depends on how you feel being out in the middle of nowhere, which all of those places are. If you're comfortable with that type of lifestyle, then there's lots of places in NC you could look - Murphy, Sylva, Franklin, Bryson City. You'll find a gas station and grocery store but not much else. Waynesville or Marshall are a little closer to civilization where you could be in Asheville in 45 minutes eating out, shopping, etc.
If you want some agent contact info send me a message; I'll give you some contacts.
@Angie Poonka - Have you visited any of these towns? I think that may help give some insight. There are a lot of great towns that can perform very well in WNC and there are some that are very rural. To @Mitch Davidson's point, the type of vacation in Gatlinburg/Pigeon Forge is completely different than in Asheville and surrounding towns. If you're planning to move into it, I think you have to weigh that aspect. Gatlinburg/Pigeon Forge is very high tourism and tends to attracts people that want to go to shows, visit "tourist" shops, etc. Asheville and neighboring towns have strong tourism, but a completely different vibe and tend to attract of lot of people seeking the outdoors for hiking, mountain biking, etc and those who want to live in the mountains as a primary or 2nd home. This may be an oversimplification, but they are very different in my opinion for what the typical vacation looks like. I will note that I'm local in Asheville and broker here and not in East TN, but I have spent a lot of time there and lived there too. Both can be great areas to invest, just different.
Hi @Angie Poonka. I would look at places that are in the 15-45 minute window from Asheville. Therein you can find the best of both worlds, meaning infrastructure for STR, and great STR demand, but also a great place to live. @Ryan Howell and I have many friends that are making amazing money in locations inside that window, and even a touch beyond it. If you look at average nightly rents on AirDNA (not the most reliable source, but still telling), you'll see places like Black Mountain and Lake Lure doing amazing. And there are other markets you can do great in as well, despite the average nightly rates being lower. Meaning, if you comb through average listings, for example in Asheville proper where most of our listings are bedrooms of a primary residence, you might see that there's a reason to not shy away from the market due only to the average nightly rate. @JD Martin is correct about the towns you listed, although I know someone who's doing very well in Pisgah Forest, as it's still near enough to Asheville, Brevard, tons of great mountain biking options, the airport, etc. But those other places are not for the faint of heart. Cherokee for example has more going on now with the casino expansion, but it's super hard to get work done if you're not going to be there to babysit, provide materials, and help. I'm setting up a cabin near there myself right now. There's a great amount of lousy listings to compete with, which is encouraging, but that's partly a product of it being very hard to get properties improved, decorated, cleaned, etc. Anyways. I'd recommend talking more with @Ryan Howell. I'm happy to chat as well, but he has a more informed perspective.
Lots of great feedback from everyone here. One very important thing to start getting a feel for is how important the homesteading component is in your future satisfaction. As someone with farming, gardening, hunting, and rural-land-specific real estate sales experience, I recommend putting some thought into what sort of footprint you'll need for crops, livestock and infrastructure to be sure you are comparing properties that are actually usable, especially if you expect to depend on revenue from your growing operations.
A small garden can work in a lot of places, but raising crops and livestock requires space, gentler land, cleared ground, sunlight, and access to a water source. In any market, availability of views, suitable (gentler) terrain, cleared ground, water frontage/access increases land prices...a bunch!
I know the Bryson City/Cherokee/Nantahala areas of WNC well. Although I just stayed in Sevierville/Pigeon Forge area last weekend passing through on holiday travel, I know less about the TN side. One difference I noticed is that it seemed like the town areas and rural outskirts I traveled leaving Sevierville/Pigeon Forge seemed pretty flat compared to Bryson City/Nantahalas area where our place is. All that to say, WNC may have "cheaper land" but the limited supply of usable land there may make it more expensive to get what you really need. Be advised cheap land is usually cheap for a reason.
"Cheap ain't always cheap."
Great stuff, @Grant Vincent.