Asheville Area STVR - Financials

[Alex Fountain]

I have an opportunity to purchase a 4/3 property in the town of Black Mountain, NC, just outside of Asheville, NC.

We have the intent of renting this property out short term and occasionally using it as a vacation spot.

I was hoping to get some input and opinions on the financials of this deal to ensure my head is not just in the cloud and that it actually has the ability to pay for itself and potentially provide some cash flow.

The purchase price is around $365k, purchasing the property on a 30-year 3.875% with 35% down. House payment will be around $1.5k with insurance and tax. 

I have seen estimates on various sites of potential revenue spanning from $45k- $60k. (airdna, etc). I am estimating a need to bring in around $2.7k /month to break even.

We are comfortable managing the property ouselves which will help to reduce our costs.

Any opinions or insights from anyone familiar with that area, or with STVR's in general, I would be happy to hear all!

[Mike F.]

For  proforma, I usually take 20% off AirDna for conservative estimate and accounting for AirBnb service fees.  In reality, my properties usually perform 20% above Airdna's estimates.   With that said,

1. Dive a bit deeper in AirDna and understand Top 10% performers

2. Do a bit of research on town / county tourism sites to understand target customers.  Value add to get top rents could be,

    a. Market as luxury- outfit furniture appropriately.

    b. Target big groups going to Christian conferences in surrounding areas (Montreat, The Cove, etc...).  This may require marketing outside of AirBnb / VRBO.

3.  Outside of contingency planning for downturn, what interests me about BM is Asheville growth east- proximity to Raleigh-Durham-Chapel Hill.  It's a very quick drive.  So, If the Triangle keeps booming, you might benefit indirectly over time.  We saw the same thing east this year along Carolina Beach-Fort Fisher-Kure Beach.  Busy season was starting in early May not Memorial Day.