All Forum Posts by: Mitch Davidson

Hi @Marcelle Abel. Black Mountain is one of our best spots here regarding nightly rates. It's just 20 minutes from downtown Asheville, yet it has its own really great small downtown. And it offers many great, free outdoor activities nearby. I live 10 minutes from Black Mountain myself, have a mid-tern nearby (inside Asheville city limits) and an STR about 1.5 hours away.

I'm happy to connect you with the help you'll need, including a great agent.

Regarding getting contractor help and such, it's near enough to Asheville. You'll have plenty of options. Finding a good STR property manager, however, may be tough.

Happy to discuss more if you like, and to provide thoughts on finance plans too.

HI @John Whitfield. I didn't use a specific income level. Meaning, the same numbers apply regardless of that. If your rate will be 6% and you sell or payoff your otherwise $599/mon car you'll increase your loan limit by about $100K.

Hi @Katharine G. I know all the markets you've listed very well, from the perspective of an investor but also vacationer and resident. I'd enjoy giving you feedback if you'd like to setup a call. I can also intro you to a local agent, depending on which city you decide to target. The cities you've listed vary wildly in features and appeal. All of them are tough to get good help in, meaning you'll likely find your best helpers through word of mouth and local networking. But some places are a tad easier than others. For example, you'll find help a little easier in Franklin compared to Bryson City (where I have an STR), but I think Franklin is more of a place to live than vacation (so nightly rate averages are lower).

Hi @Stephanie Gledhill. In a past life I worked with Roofstock. Memphis was always one of the best markets. I see they have some properties listed now that will come pretty close to 1%. And they shoot low on the rent estimates, so things may be better than what they seem there. I suppose some of the properties and locations might lend well to furnished monthly or even STR, but unsure.

Hi friend. I’m sure you’ve heard many tips on how to start investing, how to grow, etc. Below is some advice that you may have not heard. In fact, it’s so unpopular and counterintuitive that a Google search for supportive imagery produces almost nothing to use. Our culture, economy, and media are permeated with the notion that everyone should have a nice, newer car, and that they should use a loan to obtain such.

Get rid of your car loan! And if that means driving an old, unimpressive car, so be it!

Consider this. Using a 6% interest rate for sake of example, the increase in your DTI that a $599/mon car payment makes results in you being able to borrow $100K less on a 30-year fixed mortgage. Likewise, a $1K/mon car loan reduces your loan limit by about $170K.

Also consider the fact that unlike the house you might buy your car is losing value every day, while you pay interest on it.

I know it's hard to consider a lesser car. I've been there and done that. I’ve argued with myself that a nicer car supports my career and relationships, which isn’t really true. Now I couldn't be happier to have much more real estate and wealth because I downsized my car spending.

If you need additional lending advice, or feedback on investing in western North Carolina (WNC) markets like Asheville, I'm happy to help. 

@John Havel, if your credit scores are pretty decent, Fannie Mae Homestyle is a superior option. The loan limit is higher. The contractor draws are friendlier to the contractor. A HUD consultant isn't required. Your offer is Conventional rather than FHA, meaning more appealing to sellers. The down payment minimum is just 1.5% higher than FHA (i.e., 5%). There is no upfront MI unlike FHA where there is a 1.75%-of-loan amount cost added to the principal or paid in cash). MI can be cancelled when LTV is 80% or lower, unlike FHA. If you're credit scores are good the monthly MI cost will be cheaper than FHA. And unlike 203K, "luxuries" like a pool or sunroom or ADU are acceptable with Homestyle.

Regarding refinancing, as @Paul Welden said, Conventional refinancing will be available after you've owned the home for 6 months. For example. I have a Conventional refi for an investor closing on 8/16. The borrower closed on the purchase with private money on 2/15. 

Happy to discuss more if you like. Can help you with Homestyle or 203K in any state, except for NY.

Hi @Claudia Salinas. These are good questions. To answer them, we'd have to ask you many others. For example, Conventional will be better than DSCR (lower rate, no prepayment penalty, etc.), but we what does you down payment ability look like, what does your credit look like, what does you income look like, etc. Then regarding the market, what type of owner do you want to be (i.e., hands on or hands off), what will your background help you do well with, how often can you travel to the area (especially pre-launch), what size home do you want to have, etc.

I would love to see you invest up this way, in north Georgia or western North Carolina. And I'm sure you'd rather get away here than somewhere closer to home. But if this will be your first STR, I highly recommend that you focus on something that's 1-2 hours from your home. If it's too close, you'll be tempted to do everything yourself, even things that you're not the best at. But if it's too far away, especially in a market like Blue Ridge where getting good help with repairs and maintenance can really require some facetime and networking, you won't have the option of doing something yourself, like cleaning, when your provider fails you.

Also. I would try to find a local BP or REI meetup in your area. You'll be able to get many free answers and insights from a small group of people that are already doing what you want to do.

I'm eager to help you find out what your financing options and limits are. Please message me if you want to setup a call.

Hi @Lewis Vine. I'm happy to provide some insight on markets over here in the mountains, to provide feedback on your finance strategy, and to connect you to an STR minded agent.

Hi @Christopher Mancini. Derek Robinson does a lot of PM lending here in the market. Great guy. Easy to work with. You can find him on BP. I can't tag him, but can message you his info.

 Hey @Matt Schreiber. That 1 bedroom you linked to is a pretty good location. We've camped across the road for many years. And the fact that it's pretty turnkey, except for the deck, is really attractive too. At 600SF the appraisal might come in low. From what I've heard though, the appraisers down there try to make it work for the deal, rather than coming in low.