All Forum Posts by: Michael Kenny

What is the insurance market there currently? Can one insure a rental at an affordable price?

@Michael Kenny As a local here in WNC, I'd be very careful. STR income figures have generally declined since the COVID stimulus wore off. And economic uncertainty, not to mention the devastation of Helene, have made things worse.

If you're mainly driven by cashflow, for your first place I'd focus on a small home, 1 bedroom, 2 bedrooms at most, because your furnishing costs will be lower and because you'll be able to appeal to the lion share of potential guests. People often fail to properly account for furnishings. If you spend $24,000 on furnishings, for example, and cashflow only $12,000 for the year, you're really not doing well IMO, because most of your furnishings will need replacing after 2-3 years. Meaning, by the time you've earned back your spend you'll have replaced most of the stuff, or will need to very soon. And regarding location, I'd avoid saturated markets and instead focus on underserved ones. In such markets you can go the route of being a hotel alternative, which is cheaper regarding furnishings, or being a destination and experience.

If your focus is most on appreciation, however, you may find more opportunities for such in markets that are more saturated regarding STR. Meaning, some of the underserved markets, where both STR's and good hotels are scarce, are very rural and therefore not so great for appreciation.

Hope this helps some. Happy to talk about more specifics if you want to have a call. And happy to introduce to you great real estate agent options if you need.