Hello everyone, my wife and I are planning to move to Asheville, NC around Q2 2017 with the hopes of house hacking in a Duplex or other multifamily property. Once over this hump, we plan to begin investing in buy and hold residential real estate properties but are concerned that Asheville may be a hard place to find cash flowing properties since the market is so hot. I thought it might be an interesting discussion to find if others have found some areas surrounding Asheville that they have had success in. What areas around Asheville are projected to grow over the next 10 years where prices are not already badly inflated? Also as a side bar conversation, does anyone know of any up and coming “Ashevilles” in the vicinity?
Not hot- nuclear. The last six good deals I saw were gone instantly. Even houses I've crwled under rocks to find get multiple offers somehow, usually really high. I'm sure there are some to be had, but my only recent success (with very aggressive searching) has been a property that only worked with some wacky out-of-the-box sidework. And even then, it's one that will have about a 12% cap rate if all goes well, but more likely 10% in the real world of Asheville's overloaded and well-paid contractors.
I don't know if you've ever surfed a fast, challenging break while competing with a huge crowd of really aggressive rippers, but it sums up the current scene here. Super glad I bought a few last year while it was still relatively easy!
@Chris Harjes , so have you considered other areas nearby?
I have- and I think Lenoir might be the ticket. It's economically depressed but stabilizing, rents are climbing to a bit over half what they are in Asheville, and there are distressed sellers there who aren't getting multiple offers on their property. Google moved a part of their computing power there, and the college does well. It's also a really pretty spot kind of at the base of the mountains. I'm kicking myself for turning down a cheap deal there because it was seven houses sold together and I was daunted by the logistics and size of the project. I'll be looking again there for sure though.
hey Casey, i think Chris nailed it with his 'crowded lineup' metaphor, however there are still deals to be had. it just takes tons of patience and networking--almost like another full time job.
i set out last year to get my first deal (a rehab and hold or 'brrr' as brandonturner calls it) and it took me 5 months. note that i did scout for multifamilies in nearby towns, from hendersonville to clyde to canton, but none of them added up for me and my investing strategy. (for the record, the lenoir options seems cool, and i think many of us in avl have been just waiting for marshall to heat up...still don't know why it hasn't..the setup is just awesome.)
in the end i finally found what i wanted (an sfr walking distance to RAD / new belgium). it was off market and likely wouldn't have been a property i could've gotten a traditional loan on--just needed tons of rehab.
it fell into place by talking to the owner (an investor who was on the verge of divesting her other properties...why not this one too?), convincing her to sell it, and having her carry the note.