I'm curious if there are any STR investors in Blue Ridge, GA willing to share their experience(s)? We love the area, but not sure how the occupancy and return compares to other markets such as Gatlinburg.
@Mike H.@Billie Young I have been doing the same research myself. We are hopefully (fingers crossed) going to have an accepted offer on an off-market deal in Franklin, NC. I was looking at a few of the North GA and Western NC mountain towns.
I think it will boil down to what are your goals, what kind of property you are able to purchase, and how you manage/market it. From talking with many owners in the various areas in and around Blue Ridge (Epworth, Mineral Bluff, Morganton, Cherry Log, etc.), you could keep it full up to 90% of the year. A few owners indicated they have been at 320-330 days rented for several years. However, that is certainly not the norm. I think you could reasonably expect 60% occupied if you price it right, maybe higher.
My go/no-go was break even (net 0 cash flow) under the following assumptions: 50% occupied at market rent (based on comparable properties) including 15% of gross rents to maintenance/cap-ex (at 100% occupancy) and utility costs. Another rule of thumb is 2% the purchase price to maintenance. My estimate of 15% always ended up being higher, but hey, what's it going to hurt to be more conservative. Do keep in mind, we are not approaching this from a purely investment standpoint. There will be some personal use. I did also check long term rental rates to make sure it could work from that standpoint if needed. Every additional booking/income above these assumptions is just gravy.
@Jason Fitzwater do find guest care more about being closer to the town of Blue Ridge and attractions like Mercier’s Orchards, or is Cherry Log/Mineral Bluff/etc. area still good?
Looking for feedback on the towns that make up the Blue Ridge, GA area. Is there an advantage being in one town vs the other or are they all relatively equivalent in terms of occupancy and rates? (Blue Ridge, Cherry Log, Morganton, Ellijay, Epworth, Mineral Bluff, Etc)
Ellijay is about 20 miles from Blue Ridge. Prices for cabins are lower than Blue Ridge, but at this time so are nightly rates and occupancy. Ellijay and Blairsville are late coming to the vacation rental game, but are trying to catch up quickly.
Blue Ridge has been heavily invested in marketing for over 15 years and has name recognition that the others don't enjoy. This name recognition has also attracted other businesses to the Blue Ridge area which fill out the guest's stay and activities. Will Ellijay and Blairsville catch up to Blue Ridge? I don't know.
All of the other small towns you mentioned are in the same county as Blue Ridge except for Cherry Log. Cherry Log is halfway between Blue Ridge and Ellijay.
I'm now researching STRs in the Blue Ridge and Ellijay areas you were about a year ago. I'm curious if any of you pulled the trigger and if so whether you have any observations you might share? How's occupancy been? Have you managed to find reliable cleaners and contractors? Any surprises, good or bad?
Also curious if you have any recommendations for realtors.
@Ben Pileggi Yes, I pulled the trigger in Blue Ridge on a 2/2 cabin and things are good! I have been happy with my results. I came in the middle of high season (11/1) and I was 43% in Nov, 64% in Dec. However, my pricing was high too! I could have been more aggressive as a newbie listing, but again I am very happy with the re$ult$! I have using Price Labs, so that has helped!
Found a great cleaner and handyman using the ‘Enemy Method’ by the Short Term Shop. Personally, for an agent in the area, call them. Yok Re is their specialist in Blue Ridge.
@Ben Pileggi - I purchased a STR in Ellijay in 2017, it's been great for me. I live about an hour away from Blue Ridge/Ellijay market, so easy for me to use personally and keep an eye on it. Happy to chat when you have time.
I'm now researching STRs in the Blue Ridge and Ellijay areas you were about a year ago. I'm curious if any of you pulled the trigger and if so whether you have any observations you might share? How's occupancy been? Have you managed to find reliable cleaners and contractors? Any surprises, good or bad?
Also curious if you have any recommendations for realtors.
Thanks!
Hey Ben, We’ve purchased two homes in the BR area in the last 8 months and they both are set to gross over $125k. We keep our rates high and have about 65% occupancy. My wife is a realtor and can help provide more insight on the area if you are interested.
I am under contract on a property in Cherry Log working with the Short Term Shop and I was hoping to chat to you if you have a few minutes tomorrow or day after tomorrow. Just wanted to know little bit more about more realistic expectations on vacancy, nightly rates, finding cleaners and handyman etc and etc. I would greatly appreciate it. Thanks in advance.
I am under contract on a property in Cherry Log working with the Short Term Shop and I was hoping to chat to you if you have a few minutes tomorrow or day after tomorrow. Just wanted to know little bit more about more realistic expectations on vacancy, nightly rates, finding cleaners and handyman etc and etc. I would greatly appreciate it. Thanks in advance.
I am under contract on a property in Cherry Log working with the Short Term Shop and I was hoping to chat to you if you have a few minutes tomorrow or day after tomorrow. Just wanted to know little bit more about more realistic expectations on vacancy, nightly rates, finding cleaners and handyman etc and etc. I would greatly appreciate it. Thanks in advance.
Hey! I saw this was 2 years ago, but how was the journey?
I have narrowed down some areas in North GA mountains. Was wondering if you would be willing to share your experience with your 2 properties performance thus far ?
I have narrowed down some areas in North GA mountains. Was wondering if you would be willing to share your experience with your 2 properties performance thus far ?
thanks,
Dahyo
Hi Dahyo, We have grown significantly since this post. We now own 4 properties in the Blue Ridge Area and are co-hosting 5 others (with 4 more coming in the next 6mo). All have been very profitable, grossing anywhere from $95k up to $300k. Its all about the style and amenities in BR right now. Renters want new and modern, with as many things to do on the property as possible. Most of the investors we are working with now are putting pools to help differentiate, which has been huge for their success. It's definitely harder to find deals that make sense, but they are still out there. We have found its actually cheaper to build right now than buy an existing property. Glad to chat more and give more insight.