Investing In Blue Ridge/Ellijay - Worth it??
Hi All,
There has been alot of discussion on Facebook pages, message boards, and popular podcasts about the saturation of the market in the Blue Ridge area and warning investors to stay away. First, I will say that the market is definitely saturated, and you need to be very savvy with your investment, but in my experience the area is not as dead as some may claim. My wife and I own three in the Blue Ridge area, and co-host another two. All have been successful in their own ways (I'll share details on each below), but it is definitely not a passive market, so If you can't invest the time in marketing, I'd imagine it would be difficult to get the returns.
What we've noticed is that the Blue Ridge/Ellijay renter desires a much more upscale experience. No longer can you buy a cabin in the woods and expect it to rent. It even seems that just having a view or being on water doesn't necessarily guarantee results--it helps, but you need other amenities to differentiate yourself. The new, modern rustic houses seem to do very well, especially if it has a view or on water. We've also noticed that the three bedroom houses seem not to rent as well. Maybe they are too big or out of the price range for one family, or too small for two families, but we've spoken with a number of owners in the area that have struggled in that size. It's also the most common bed/bath count, so there's ALOT more competition. Right now the 2/1 or 2/2 cabins are doing very well, but they need modern updates. If you can get a renovated 2/2 with a view at decent price, it will definitely do well. This size tends to be more last minute bookings, but they fill up. The other successful rentals appear to be in the 4+ bedroom range. The bigger and more beds the better. Even at peak rates these can be affordable enough for multiple families to pitch in and afford. Still, you need something that stands out, not just a pool table and outdoor fire pit.
Here are our listings, I'll try to provide as much info as I can:
Relax and Enjoy the View -
https://www.airbnb.com/rooms/5...
Purchased in June 2021 - $525,000. Renovation and furnishing cost: $60,000
2022 Gross: $117k
2023 Gross YTD: $53k
Looking at these numbers, it appears this one isn't doing well this year, but there's context. We did a major bathroom renovation in February and had it closed most of the month. We also decided to put it on the market in May to 1031 to a larger property we identified. We closed our calendar and stopped marketing because we didn't want to deal with transfer bookings (which was definitely a mistake), so summer took a while to fill in. However, after dedicated marketing, we ended up with higher gross revenues in June and July than 2022. Now we are looking to hold and make some more updates to modernize and keep up with the trends in the area.
The Boujee Buffalo -
2022 Gross: $146k
2023 Gross YTD: $135k
This one sat on the market for months before we looked at it. Its about 25-30 minutes from town which may have kept buyers away, but we couldn't pass on the uniqueness of the huge finished garage. Turning that into an awesome arcade has definitely differentiated it, and it will well surpass our 2022 number.
Play All Day Retreat -
2022 Gross: $36k (only late November and December)
2023 Gross YTD: $183k
This was another that sat on the market for months at the height of the frenzy. We think because it doesn't look like a standard cabin it was passed over, but this thing is a rental machine. We did have to invest alot to finish the bunkroom above the garage and the theater room, but this thing is a renal machine. Having the pool in this market is huge.
Vaughn Springs (Co-host) -
https://www.airbnb.com/rooms/889630049189701125?guests=1&adults=8&s=2&unique_share_id=c7e216c4-6085-4677-b8e8-9940c09a2fce
Purchased April 2023 as new build - $1,085,000. Furnishing cost: $55,000
2023 Gross YTD: $81k (just through Sept.)
This is a prime example of the type of property that is killing it in BR right now. We expect that this will gross at least $200k in a full year of service. It doesn't have views, but the pool is such a huge draw. It's hard to find 18-20% gross of purchase price in ANY market right now.
Rustic Hideaway (Co-host) - https://www.airbnb.com/rooms/839040993900203407?guests=1&adults=1&s=2&unique_share_id=b63bf7c0-af72-4a6b-ba16-5d940fa350d6
Purchased in April 2023 - $475,000 completely turnkey, put in service Mid-May
2023 Gross YTD: $13k (anticipated revenue of $55k for full year)
This is a good example of properties that will cash flow a little without investing too much. This 2/2 was actually a flip that we did and sold to another investor. We are helping them get started and they are taking over hosting themselves. While the price per square foot is higher on these properties, they say consistently booked with very little expenses.
Obviously, we got in at the right time with a couple of our properties, but they would still be worth it at today's prices. The point of this post is not to brag on our successes or to bring down others who might be struggling. I just hope to bust some myths about the current state of the market in BR/Ellijay. I truly think that if you have some vision and can bring something unique, you can be successful. We are certainly willing to help provide more insight or advice any way we can.
I'd be very interested to hear others' experience, and if you haven't cash flowed as well as you'd hoped, maybe this community can help.
