All Forum Posts by: Mitch Davidson

Hi @Angie Poonka. I concur with @JD Martin that you really should visit the many small towns in the region to get a feel for what you're comfortable with, where you'd like to live, etc. There are tremendous differences when comparing Gatlinburg and surrounding to western NC, and the differences vary one town to the next. For example, greater Gatlinburg has a pretty robust infrastructure for STR, which can make startup easier, but the market doesn't appeal to every tourist that wants to visit our region. In smaller western NC markets, for example, even those that surround Asheville, tourists can often have an experience that is quieter, more private, and less expensive when compared to Sevierville, Gatlinburg, PF, etc. And those kind of benefits would seem more appealing regarding your plans to move into the place in the future (meaning, you may not enjoy living in a market that is super focused on STR). Regarding property and income tax, I wouldn't over emphasize that. Property taxes are super cheap in smaller NC counties, and really throughout most of western NC. And state income tax will apply if you move here, but it won't be too steep. Also, for what it's worth, the state income tax in NC seems to help us have better roads, schools, etc. compared to some states that lack state income tax. Happy to discuss further if you like, and to help you think on financing plans as well.

Hi @Jeremy Bily. I have only heard of bad ones for that market. If you hire one of them, you'll end up with far less gross revenue, and you'll then lose 25-30% of it to the PM. Perhaps self-managing won't be too terribly difficult once you get through the transition. 

@Parul Bhasin: As @Max L. said, you really need to look at this property on a map. Hopefully your agent will be brutally honest about the location. There are some spots of Bryson City, Almond, Whittier, Webster, etc. that are 30+ minutes from anything your guests will want or need, and to make it worse up very twisty roads.

Also, if you won't be able to be on site a lot of the initial setup of the home, and if you don't have the time or patience for that phase to go much longer than normal, I would look at other markets instead. In these towns, I can speak from experience, the few contractors you can find are booked far out, often don't really need your business, and are typically found only by word of mouth.

For that reason, you might find that photos of listings in this particular market on average don't look as great as a market where more help is available. STR owners seem to often have to settle for a little less wow factor due to lack of help. On the flip side, if you can put your own hands into the work and make the wow factor happen yourself, you may find it a little easier to stand out compared to some other markets.

Hi @Ryan Mulder. Congrats on the new property. I've always understood tenant rights to begin at 30 days, but it would be best to consult an attorney. And it sounds like you may be more concerned about what is sometimes called "squatter's rights." I recommend a full-blown lease for anyone that will stay nearly 30 days, as well as deposits. I require both for my furnished monthly rental. Also, I think you have other things to worry about if you let guests stay in your STR for several weeks. Meaning, they start living in the place, rather than just spending evenings or rainy days in the home. For that reason many of us limit stays in our STR's to 7 or so days.

@Matthew Pride, I think @Michael Hyun's comments above are gold. Instead of focusing on markets that are easy to jump into, perhaps focus on markets where it will be hard for people to jump in and compete with you. Here in Asheville, for example, you can't STR an entire home inside city limits. You can rent out a room or small space of a home you live in, but that's about it. The rules help cap the number of competitors in the overall market, help scare off some would-be investors, and likewise help locals have a place to live. About 1/3 of the city is not inside city limits though, meaning STR is allowed, and there are many great STR's within 30 minutes of town. Similarly, you can look at towns where STR does well and yet there are barely any contractors or service providers to be found by internet search. We have many of those in Western NC. It seems counterintuitive. Why would you want to do that to yourself, you might ask. The answer is that once your place is setup you'll have a safer investment, meaning one that's hard to compete with. Sure, you'll have to spend much time at the home right after closing, networking and digging up help, but in my experience that's not too hard. You just have to have patience and persistence.

Hi @Michele Ghastin. Are you looking for a CPA and attorney that are rather local, meaning here in the Lake Lure and Asheville market? If so, I can send you some referrals. 

Hi @Raj Shah. I can attest that @Matt Payne is one of the best in the business. 

Hi @Raj Shah. For STR or LTR?

Hi @Tom Dempsey. I too think western NC is pretty great for what you're looking for, in part because there are many free outdoor opportunities, some of which are available rather year round. On the other side of the state you'll have more seasonality and perhaps less yearly revenue for your investment. There are many great options surrounding Asheville, such as Black Mountain, Lake Lure, Mars Hill, Brevard, Waynesville, etc. Personally, I invest in Asheville and Bryson City. I wouldn't buy in the latter one though if you need the home to launch super soon after closing, and if you won't be able to be in town a lot while preparing the home for launch (to do much of the work yourself). Meaning, when you get further out from Asheville, in small towns that are surrounded by small towns, it's a real struggle to get work done quickly. I'm happy to talk further about the markets here. To @Levi Bennett's point, Boone and the surrounding area is another great market in Western NC.

HI @Olga Kostrova. I agree with @Tiamo Wright. You're going to need a specialist per market. In NC we have many MLS boards, usually comprised of just a few counties. Someone that can help you in my hometown, Asheville, cannot access comps for Charlotte, and likewise won't want to drive over there to see a property for you. Many selling agents counsel their sellers to reject site unseen offers around here. I've actually tried to have one of my agents help me in an adjacent county that isn't part of our MLS. It was such a struggle to get comps from selling agents that I had to find a different agent for that MLS. I'll message you some recommendations on investor focused agents if you like.