Asheville NC Real Estate Forum

User Stats

124
Posts
90
Votes
Brandon Allenczy
90
Votes |
124
Posts

Investing/Househacking in Asheville

Brandon Allenczy
Posted Dec 10 2019, 04:42

Hey everyone!

I've seen a lot of BP posts about people that live in Asheville, but aren't investing here. I understand why, but I'd love to hear from those that are putting their money to work in the Asheville market. If you invest in or around WNC message me and I'd love to buy you lunch sometime! 

My long term strategy is to purchase multiple small multiplexes by getting in with owner occupied loans, living there for a year, then moving to another one. 

Hope to hear from you!

Asheville NC, North Carolina

User Stats

1
Posts
3
Votes
Account Closed
  • Rental Property Investor
  • Asheville, NC
3
Votes |
1
Posts
Account Closed
  • Rental Property Investor
  • Asheville, NC
Replied Dec 10 2019, 06:31

@Jeffrey Allenczy

I’m new to town and just bought my first property in Asheville.

I hear the same things about investors staying away from Asheville and looking outward for deals. Maybe the memory of $50k houses is too recent. I’ve been told that W Asheville and River Arts District were boarded up and abandoned only 15-20yrs ago.

I feel like I got a good deal on my place at $227k, however it needs $30-40k in rehab. It’s a block to Haywood and walkable to anything with a downstairs apartment to boot. The rental market here strong.

User Stats

154
Posts
136
Votes
Derek Robinson
  • Investor
  • Asheville, NC
136
Votes |
154
Posts
Derek Robinson
  • Investor
  • Asheville, NC
Replied Dec 10 2019, 06:47

@Brandon Allenczy hey!  You probably don't want to hear from me because I'm one of those investing elsewhere for the most part :-).  I know a few investors (myself included) that are doing short term rentals in the outskirt areas of Asheville to make things profitable in this market.  I hear of a few people now and then that land a deal on a single family or maybe duplex that needs a lot of work.  They manage the project themselves and maybe do the work and end up with a rental that cash flows, but very low.  Nothing is impossible, but the odds are stacked against you in my opinion.  Even moving into a multifamily in the immediate area might pay your mortgage with rents collected, but once you move out and rent your unit, once you plan for cap ex, maint. taxes, property management, insurance, and mortgage I think you'll find that it won't be a good cash flowing investment.

I don't like to be so negative, but that's my opinion of the market.

User Stats

2,956
Posts
2,631
Votes
Jaron Walling
  • Rental Property Investor
  • Indianapolis, IN
2,631
Votes |
2,956
Posts
Jaron Walling
  • Rental Property Investor
  • Indianapolis, IN
Replied Dec 10 2019, 06:48

I'll start out by saying Asheville is really amazing! My friends and I celebrated a bachelor party down there is summer which leads into my first point. The city felt like it was 100% tourism based. I could be completely wrong with that statement but from an outsiders prospective if the economy dips what's going to sustain Asheville? I didn't see any blue collar type jobs, meet anyone that lived there, or noticed pockets of affordable SFH s. I was a little shocked.

I'm not saying it's a bad city for investment but I would tread lightly on much (STR s seem logical). Working at a brewery or busting tables is not sustainable if the tourism slows down.

User Stats

18
Posts
28
Votes
Rodrigo Afanador
  • Specialist
  • Asheville, NC
28
Votes |
18
Posts
Rodrigo Afanador
  • Specialist
  • Asheville, NC
Replied Dec 10 2019, 07:07

@Brandon Allenczy I live here in Asheville and exclusively invest in the Asheville area. I work/invest in three counties; Henderson, Haywood, and Buncombe. I have been here since 2012 and have been able to wholesale, flip, and acquire rental properties on a consistent basis. As @Derek Robinson mentioned, the odds are going to be stacked against you and it will take a lot of work, but it is possible. There are a lot of folks here in the Asheville area that have only invested here in the area, so it is possible for sure. So, long story short and to also respond to @Account Closed there are a lot of people who live and invest here in the Asheville area. If you go to a CREIA meeting or keep networking you will find them! 

User Stats

355
Posts
246
Votes
Jon A.
  • Asheville, NC
246
Votes |
355
Posts
Jon A.
  • Asheville, NC
Replied Dec 10 2019, 08:41

I agree with all the above posts. My take on it is that prices are so high that they don't cash flow if you are looking for long term holds. If you are flipping and you find the right deal, and have access to a lot of cash you may find something. But from what I am seeing, rents just don't support the investment. I would also suggest that it sure feels like we are at the top of the market for rents, and the jobs don't support anything higher. 

User Stats

153
Posts
63
Votes
Eric A.
  • Queens, NY
63
Votes |
153
Posts
Eric A.
  • Queens, NY
Replied Jul 9 2020, 15:33

What do the locals think of purchasing a house in the mountains just outside Asheville, say in Fairview, and doing short-term rentals/Airbnb exclusively?  In my limited research, it seems a 4 bedroom house can fetch something like $300/night and average 200 nights a year occupancy.  Even paying a 25% property manager fee, my back of the envelope math tells me that's a pretty good return on a $400k house?  What do people think?

User Stats

5,424
Posts
3,105
Votes
Chris Martin
  • Investor
  • Willow Spring, NC
3,105
Votes |
5,424
Posts
Chris Martin
  • Investor
  • Willow Spring, NC
Replied Jul 9 2020, 18:08
Originally posted by @Eric A.:

What do the locals think of purchasing a house in the mountains just outside Asheville, say in Fairview, and doing short-term rentals/Airbnb exclusively?  In my limited research, it seems a 4 bedroom house can fetch something like $300/night and average 200 nights a year occupancy.  Even paying a 25% property manager fee, my back of the envelope math tells me that's a pretty good return on a $400k house?  What do people think?

I am not a local today. I have looked at this market for over 10 years (since the Great Recession) and agree with others posting above. My take on your premise is that, while theoretically possible, your expectations are too optimistic. I'm not trying to be negative but your concept doesn't appear to have any current implementation. That gives me pause. While 5 nights a week for 40 weeks is plausible, in many areas outside Asheville (like Fairview) this would be a stretch. BUT... I don't know your marketing angle. Maybe you have significant marketing expertise to get reservations that don't exist in the current market? Celebrity endorsements or executive connections may be all you need. I'm not joking. I knew a guy in Cary NC who did STR to SAS managers in 2004-2006 and absolutely cleaned up. So I know theoretically that anything is possible. So... why Fairview vs. Black Mountain or Weaverville? Catering to airport travel? I-40 traffic? I'm not getting the full view.

Asheville is a destination city. 30 minutes outside is ok, but there needs to be a big 'yes' factor... like big mountain views and a private lot to make it work. Not unlike the NC coast, location is key. You are in Asheville (or on the oceanfront) or you aren't. Without an 'ace' marketing angle, I don't see a big payday. 

(limited opportunity outside the 'real' STR areas, today at least)

User Stats

153
Posts
63
Votes
Eric A.
  • Queens, NY
63
Votes |
153
Posts
Eric A.
  • Queens, NY
Replied Jul 9 2020, 18:20

@Chris Martin thanks for your thoughts.  Doesn't have to be Fairview, that was one example.  But to answer your question, the primary angle would be a house in the mountains with stunning views and secluded, maybe a hot tub + fire pit, private acreage type of thing.  A real getaway that maybe even people living in Asheville would do weekends in. That would be the main draw.  Less than 30 minutes to the action in Asheville for those out of towners that want the best of both worlds.  The professional Airbnb property managers in the area tell me 200 nights might even be conservative for a house with stunning views.  I'll do some more due diligence.  Anybody have any other favorite awesome mountain towns within 45 minutes of Asheville? I personally like Brevard, but might be a bit too far away?

User Stats

445
Posts
408
Votes
Ryan Howell
  • Rental Property Investor
  • Hendersonville, NC
408
Votes |
445
Posts
Ryan Howell
  • Rental Property Investor
  • Hendersonville, NC
Replied Jul 9 2020, 18:49

Hey Jeffrey, I live and invest in the area. Everything I'm buying is below market and meets the 1% rule, all smaller multifamily with value add. I'm basically utilizing the BRRRR strategy. Happy to talk anytime. Just send me a message.

Real Estate Agent North Carolina (#317060)

User Stats

45
Posts
28
Votes
Christian Longacre
  • Real Estate Agent
  • Asheville, NC
28
Votes |
45
Posts
Christian Longacre
  • Real Estate Agent
  • Asheville, NC
Replied Jul 9 2020, 19:14

@Jeffrey Allenczy

Asheville is hot, but you can still find deals in Asheville and the surrounding areas. Living in your first investment property is also a great idea. Figure out a strategy that you’re comfortable with and that will work in WNC and give it a shot. Let me know if you’d like to talk more about any specifics.

Real Estate Agent North Carolina (#311636)

User Stats

5,424
Posts
3,105
Votes
Chris Martin
  • Investor
  • Willow Spring, NC
3,105
Votes |
5,424
Posts
Chris Martin
  • Investor
  • Willow Spring, NC
Replied Jul 10 2020, 03:55

@Eric A. sounds like a plan, I'm just not sure why Airbnb doesn't have such places now. Any idea? 

User Stats

308
Posts
276
Votes
Joseph Bafia
  • Investor
  • Raleigh, NC
276
Votes |
308
Posts
Joseph Bafia
  • Investor
  • Raleigh, NC
Replied Jul 10 2020, 18:16

@Eric A. I have 2 properties in Mars Hill, NC (Wolf Laurel). I bought both with the intention of STR, but as soon as I got the 2nd one ready for listing COVID hit. Luckily my housekeeper needed a new place and we negotiated a LTR for 1 year, so I'm a bit diversified. Your theory in my market holds true. We did 240+ rental days in our first place. Year-round rentals with worse month being Jan. We do NOT use a property manager and I live 4.5 hours away. If I moved to CA, I'd still self-manage these. With mobile apps, a good housekeeper and handyman nearby, can manage from anywhere with minimal effort and keep the 25%. I'm already looking for my 3rd property out in that area. We have hot tub, fire pit, and a big deck with great view. We're 45 minutes from Asheville and most of our guest state that they want seclusion but a short trip in to visit Asheville. Love the area and the market. Happy to answer any questions.

Joe

User Stats

97
Posts
42
Votes
Josh Myrick
  • Property Manager
  • Fairview Nc
42
Votes |
97
Posts
Josh Myrick
  • Property Manager
  • Fairview Nc
Replied Aug 19 2020, 21:26
I actually love in Fairview 3/2 Manufactured log cabin, brand new with full basement and 2 acres. With new low interest rates I pay 1100$ a month mortgage.  I can’t speak to the rents but there are a bunch of new homes popping up everywhere. They are building a small collection of 10-15 homes on Garren Creek near me and a new mobile home park is coming in on Whitaker Road. Fairview is also 25 mins from Hendersonville, 15 to Asheville, 25 to Black mountain. So it’s nicely in the middle. We had two new breweries open up here too. Otherwise not much to do in Fairview. One bar, a few small restaurants, and a few breweries. But very little traffic into Asheville. 

Originally posted by @Eric A.:

What do the locals think of purchasing a house in the mountains just outside Asheville, say in Fairview, and doing short-term rentals/Airbnb exclusively?  In my limited research, it seems a 4 bedroom house can fetch something like $300/night and average 200 nights a year occupancy.  Even paying a 25% property manager fee, my back of the envelope math tells me that's a pretty good return on a $400k house?  What do people think?

User Stats

97
Posts
42
Votes
Josh Myrick
  • Property Manager
  • Fairview Nc
42
Votes |
97
Posts
Josh Myrick
  • Property Manager
  • Fairview Nc
Replied Aug 19 2020, 21:28
Asheville has a city ordinance restricting short term rentals. I think anything under 30 days. So hard to Airbnb in Asheville. The county is fine with them.

Originally posted by @Chris Martin:

@Eric A. sounds like a plan, I'm just not sure why Airbnb doesn't have such places now. Any idea? 

User Stats

8
Posts
1
Votes
Replied Nov 23 2022, 17:45

Digging up an old thread here. Is the consensus still "not good" on the Asheville market? What about the surroinding areas like Canton, Fletcher, Arden, and Hendersonville?

User Stats

177
Posts
201
Votes
Mitch Davidson
  • Lender
  • Asheville, NC
201
Votes |
177
Posts
Mitch Davidson
  • Lender
  • Asheville, NC
Replied Nov 24 2022, 06:31
Quote from @Travis Provin:

Digging up an old thread here. Is the consensus still "not good" on the Asheville market? What about the surroinding areas like Canton, Fletcher, Arden, and Hendersonville?

Hi @Travis Provin. Our market is still a great investment IMO, especially for STR. Happy to elaborate on my perspective if you want to talk sometime. Will message you.

User Stats

45
Posts
28
Votes
Christian Longacre
  • Real Estate Agent
  • Asheville, NC
28
Votes |
45
Posts
Christian Longacre
  • Real Estate Agent
  • Asheville, NC
Replied Nov 24 2022, 10:50

Hey @Travis Provin, there's lots of great locations to invest in and around Asheville.  I'll send you my info, I'd be happy to talk anytime.

Real Estate Agent North Carolina (#311636)

Log In or Sign Up to Reply