Highlands Cashiers Market
Really interested in investing in this market and would accept a relatively low return (or even a break even scenario because i believe in continued appreciation potential here). Ownership demand here seems to heavily outweigh tourism demand and i'm struggling to get anything to pencil. Not alot of confidence in any existing rentals as consistent indciators but I feel like so many homes are 1/2 rentals and don't tell the whole story.
Anyone have any insight into the Cashiers/Highlands/Sapphire/Lake Toxaway markets to share?
#2 Short-Term & Vacation Rental Discussions Contributor
- Olympia, WA
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#2 Short-Term & Vacation Rental Discussions Contributor
- Olympia, WA
So you shouldn't count on appreciation to justify under performing STRs.
Quote from @Michael Baum:
So you shouldn't count on appreciation to justify under performing STRs.
Yea this is a long-term personal play more than a strict STR deal. wouldn't bring this one to a partner or anything just satisfying my own desire to get a foothold in a place i like to be.
Quote from @Scott Weston:
Quote from @Michael Baum:
So you shouldn't count on appreciation to justify under performing STRs.
Yea this is a long-term personal play more than a strict STR deal. wouldn't bring this one to a partner or anything just satisfying my own desire to get a foothold in a place i like to be.
Scott - I'm in the same boat -- looking for STRs in the area you mention, as well as closer to Asheville (where I live).
Demand and occupancy appears strong, but the numbers don't add up for me to justify the effort of STR. And, not confident of the earnings/industry in the area to feel good about LTR. Curious if you'd found anything?
@Scott Weston and @Luke Sanders. I looked at Sapphire pretty hard last year, and made a couple of offers there, but in the end decided it wasn't the market for me. I too live in Asheville, so Sapphire was closer than Cashiers and Highlands. And the locals in Highlands have been fiercely debating STR's and regulations for the last few years, so I wouldn't be comfortable buying there. That also made me hesitant about Cashiers, meaning I worried that the mindset would spill over. Sapphire is much more of a vacation home community.
The deciding factor for me was that Sapphire and Cashiers don't have a lot to do, except for golf and hiking. Sure, there's a little beach at the one lake, and the shops at Cashiers, but to me it's just not quite enough. Lake Lure, for example, has more to offer, is more well-known, and is closer to some other great towns like Black Mountain and Hendersonville.
If I was buying south or southwest of Asheville right now I might be trying to get very close to one of our great new downhill mountain bike parks, meaning Ride Kanuga in Hendersonville or Ride Rock Creek in Zirconia. Both are drawing more and more tourism, as well as relocations, and are holding more and more special events and competitions.
Luke - after a year of searching I found a property that i'm under contract on and feel pretty good about. I landed off of Highway 64 between Cashiers and Highlands - so good proximity to both without a daunting drive to get to a great view. Here's my takeaway from the market:
Smaller, less impressive cabins are pretty over-saturated and unless you have a big view (or water frontage) to really make you stand out, you will struggle. I think the area is short on larger (4-5 Bedroom) homes that can really accomodate a whole family. Big, covered, outdoor living areas also appear to be a winning amenity for each home. This is a fine needle to thread because at this size, you very quickly start competing with high net worth individuals who are seeking summer homes. An agent told me that 9/10 transactions they handle are cash and not financed - so i think in this particular submarket going in with financing really weakens you.
All that being said - follow the money. If you can get a big 4-5 BR house with a view for a under a million bucks, i'm pretty confident you can cash flow it with a good return, even in a 6%-7% interest rate environment. Plus, because of the growth of the area and the elevation (you just don't get the cool weather once you drive down the hill to Brevard or other areas), SO MUCH money has eyes on it. I think demand will continue to grow as the area settles into its next life as more of a year round destination.
Quote from @Luke Sanders:
Quote from @Scott Weston:
Quote from @Michael Baum:
So you shouldn't count on appreciation to justify under performing STRs.
Yea this is a long-term personal play more than a strict STR deal. wouldn't bring this one to a partner or anything just satisfying my own desire to get a foothold in a place i like to be.
Scott - I'm in the same boat -- looking for STRs in the area you mention, as well as closer to Asheville (where I live).
Demand and occupancy appears strong, but the numbers don't add up for me to justify the effort of STR. And, not confident of the earnings/industry in the area to feel good about LTR. Curious if you'd found anything?
@Mitch Davidson - agreed. Hammer got dropped in Highlands with some level of grandfathering to existing rentals. Cashiers is unincorporated Jackson County - where Highlands is its own municipality and able to act in more precise way that exact community. So while there is always risk in this area - i don't know. Its a vacation town. Some level of protection will almost certainly be provided as opposed to some sort of outright ban.
Quote from @Mitch Davidson:
@Scott Weston and @Luke Sanders. I looked at Sapphire pretty hard last year, and made a couple of offers there, but in the end decided it wasn't the market for me. I too live in Asheville, so Sapphire was closer than Cashiers and Highlands. And the locals in Highlands have been fiercely debating STR's and regulations for the last few years, so I wouldn't be comfortable buying there. That also made me hesitant about Cashiers, meaning I worried that the mindset would spill over. Sapphire is much more of a vacation home community.
The deciding factor for me was that Sapphire and Cashiers don't have a lot to do, except for golf and hiking. Sure, there's a little beach at the one lake, and the shops at Cashiers, but to me it's just not quite enough. Lake Lure, for example, has more to offer, is more well-known, and is closer to some other great towns like Black Mountain and Hendersonville.
If I was buying south or southwest of Asheville right now I might be trying to get very close to one of our great new downhill mountain bike parks, meaning Ride Kanuga in Hendersonville or Ride Rock Creek in Zirconia. Both are drawing more and more tourism, as well as relocations, and are holding more and more special events and competitions.
Homes in highlands cost 2-3x the surrounding towns. It’s the aspen of the east. But perhaps unjustifiably so. The clientele tends to skew old and stuffy.
I’d stick to Franklin, Clayton, Westminster, hayesville, Bryson city