All Forum Posts by: Levi Bennett

As a local broker here, I can tell you that, out of all my investors clients (about 9 of them), they all prefer SF. Most that I work with that have been doing some variation of the BRRRR method are cashing out and moving to short term rental instead of long term rental as the return is significantly higher (2-4x higher).. but.. still most are SF. You can't imagine the competitiveness of SF in the new construction areas around Charlotte tho. A neighborhood near me had 700 inquiries and 40+ offers on one of their new spec homes. So, it's not really a question of strategy usually, it's more of a question of inventory availability and can you compete with extremely over-ask offers. Most new construction homes advertise their homes significantly lower than the actual purchase price (sometimes 80-100k lower) and then from there they still get way over ask. New construction starts coming down to earth in terms of lower competition once you're about an 45 minutes to an hour outside of the city.

Hope this helps!

The best in the business (in my opinion) is Dan Michiels https://www.dmichielscpa.com/

@Kellyn Cameron yes! We're looking to get one this year, but we're also looking for a new house for ourselves.. so we'll see which takes priority. But I intend to have 3-5 by next year. Right now, all the great ones go to my clients lol

I'm more than happy to take your money and give you a return. 

Ashley Class is amazing (you should find her fb, we know a lot of the same people). She's also an interior designer, STR manager, and general contractor. All around BA.

Caleb Shore (also on fb) has an STR PM company (MyTripify.com) that is willing to work overtime to earn business. They hustle hard and might be a good option and are based in Charlotte

Then there are the big ones.. Bonnie Laslo (a local STR investor) has been recommending "Evolve" as good one that has low rates (10% I think) and big ticket bookings, but their reviews online are spotty at best online, but she's had a great experience.

I also know a Vacasa representative in the area that has full service options and a huge staff that can handle as many you throw at them, so it might be a good scale option. They also do all their own linens included in the price which is a huge service (kind of like a hotel).

Feel free to reach out if you need any direct contact information for any of those guys. 

@Brian Schuler this zoning overhaul is very high priority for the city of Charlotte. This co-insides with their new revamp of their 50-year plan and there are changes to the zoning coming one way or another. I don't see this getting avoided. Most of the other cities in the state have made similar changes to modernize their zoning, and Charlotte is no different. It's coming. Probably be in July when this all goes into effect. 

Syndicate. Or, if you want more aggressive returns, but that money into Short term rentals where your gross revenue will double or triple. Luxury STRs are in massive demand and make stupid money. You can also fully automate the process with a great STR PM.

@Conner Olsen to be clear, STRs are NOT illegal, or becoming illegal in Charlotte. @Brian Schuler as far as your question about enforcement, that's easy.. the permitting system is how they track and enforce the rules. Since this is a top-down re-write of all zoning in Charlotte, they'll be expanding this (and the GIS system) to include STR permits. You'll be required to have a permit, it'll be registered with the city, and when they upload it into the GIS, it'll be easy to know if it's within 400ft of another STR. Basically it'll be a race for applications if you KNOW you're within 400ft so I would be first in line to make sure I'm getting a permit lol.

Asheville has a near-ban on all Short Term Rentals, so don't even look in the city limits because it's almost impossible to get a permit. Most people looking for an STR shop right outside the city limits. However, at your price point, I'll tell you now it'll be challenging. I'm a real estate broker that exclusively specializes in STRs in Western NC and there are definitely areas in the mountains that most people would never think perform well, but actually do great on the STR market. I have a full license to Airdna for the entire state, and I use it every day to analyze properties quickly. It's basically what I do all day, every day.

A market that would be very competitive on the STR market, and still be in your price range is the Spruce Pine/Burnesville/Little Switzerland area. It's extremely under-served on Airbnb and VRBO, and occupancy rates are very high compared to more popular areas. Being that it's not really known as a tourist destination (but features some of the highest elevations east of the Mississippi River), prices are still very affordable offering very good ROI.

There are several other markets in Western NC that are interesting, and I'm looking all the time, feel free to reach out if you need some help. 

There are other factors you need to consider, like how you're financing.. if you're using a mortgage, most properties with a killer ROI will NOT appraise.. meaning you're coming out of pocket more than than you budget, and then making repairs (if needed) and furnishing. The upstart cost can sneak up on you if you're not prepared. (at the risk of sounding like a realtor) If you have that much in cash, you'll get a much better return leveraging that money to get more bedrooms. The whole name of the game in STRs is how many people can you sleep comfortably. Bedrooms per dollar is a huge metric that I use for my clients. The more bedrooms you can get the better. It's even better if you can get a second living quarters or two en suites bedrooms. Uniqueness is key also. It's a nuanced business, but I love it. I learn something new every day doing this, but I'm happy to help if you want.

I live north of Charlotte, NC and I've been working with investors here for several years. I've heard about every strategy in the book. I'd love to set up a call and figure out what fits your investment style and figure out a game plan from there. Looking forward to having you in our state!