All Forum Posts by: Christian Longacre

Hi @Michael Delmar, welcome to BP!  Good luck with pre-licensing, and feel free to reach out to me with any questions about investing in WNC.

@Larry Chen - Know yourself and set yourself up for success (especially for your first investment).  When I was buying my first property, I decided that getting started was more important than finding the perfect deal.

There's at least one more option, which is turn-key today with value-add opportunities you can address in the future.  This is the approach I took with my first property.

If you decide to take on a rehab, make sure you have extra funds set aside for delays and material costs in today's market.  I agree with @Steve Schulman that value add is great for a variety of reasons if you're up for it.

@Katherine Gonzalez WNC is a great place to live and invest.  Each town listed is pretty unique, so I would try several before you're ready to make your move.  Asheville will offer the most conveniences at the cost of traffic, tourists, expensive real estate, etc. 

What type of investing do you want to do? If you're thinking STRs, then you may want to avoid Asheville city where they are restricted to homestays only (currently). There are definitely still opportunities to BRRRR, house hack, flip, and STR in WNC. The type of investing you want to do will probably influence where you choose to invest.

The weather is great!  We experience all 4 seasons with fairly moderate winters and summers.  In fact Hendersonville is called the City of Four Seasons.  The northern cities you mentioned (Boone, Weaverille, and Waynesville) will get slightly more snow than the others. 

You can find whatever mix of rural/city life you are looking for in WNC depending on where you land.

Best of luck!  Let me know if you have any specific questions.

@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.

Hi @Kat McReynolds, thanks for the follow-up! I decided not to build the detached ADU that I was considering. I met with my contractor, lender, and an appraiser before finally deciding not to pursue it. Here's what I found:

Contractor - The big hangup was a mountainous lot (high construction costs) and difficult opportunities for a new septic system and repair field. 

Appraiser - Limited comps for homes with ADUs in my area, so I was unsure of the resulting effect on my property value (I was hoping to refinance after building the ADU to get some cash back). This was merely from a phone conversation with an appraiser I had worked with in the past, I did not pay for an appraisal.

Lender - I've worked with HomeTrust in the past so I reached out to them. They would lend on property with an ADU (purchase or new construction), but there were specific guidelines. I think the ADU had to be on the main home's water tap, maybe electrical meter as well to name a few (I don't remember the specifics anymore).

I think that an ADU could be a good solution for some people and some properties. From my perspective there were a few easier options than building an ADU on my property:

1. Buy a house that already has an attached or detached ADU (or an unfinished basement that's easily finished).

2. House hack a large SFH (rent out the extra bedrooms).

3. Buy another rental property with the BRRRR method.

4. Find an ideal lot and build a house with an ADU.

Best of luck! Are you considering building an ADU?

Personally, I’d say that anything between Weaverville, Canton, Flat Rock, and Black Mountain would be a good choice. Pick a location inside that area and you should be in good shape for a fix and flip (based on buyer demand). Like others have said, deals are sparse, but they are out there. Best of luck!

Hey Ryan, welcome to BP!

Hi Jacob! What do you plan to use the GRM for? I don't know what it would be for South Asheville, it seems like it would vary a lot based on location. I analyze properties based on cap rate and cash-on-cash return, have you considered those tools? GRM may be valuable to indicate value based on an Income Approach, but my understanding is that a Comparison Approach (comps) is typically used for 2-4 unit multi-family. To take a swag at a particular property, check rents and values on Zillow. Or you could reach out to a RE agent or property manager.

Cap rates on MLS multi-family properties in S AVL are low (5-6% from what I've seen lately). Your best bet is to find a multi-family property that is mis-managed, has below-market rents, or needs to be renovated; then you can take the steps necessary to improve its performance.

I’ve worked with HomeTrust. They’ve been really good to do business with (equity lines and mortgages).

Talk to Justin Brown. He’s a good friend of mine and he hosts meet-ups in the Allentown area. He can put you in touch with some other investors too.