Real Estate Broker · Asheville, NC · Member since 2013 · 82 posts · 29 votes
10y
Paul,
I'm in Asheville. Investors are active here (we have a great and active REIA). But unfortunately at the moment we have a really low inventory on the retail market.
For example, a 6 month inventory is considered balanced, under 6 would normally be a sellers market, over would be buyers market. Running quick numbers thismorning on single family homes under $250K in Asheville... there are 182 homes active or under contract and over the past 6 months and average of 71/month have sold. That puts the inventory in that segment at about 2.5 months. That's pushed up prices of even the most distressed properties. In the $300K-500K it's more balanced and over $500K is still a buyers market for the most part.
There are a few good wholesalers finding deals for investors (Rodrigo who isn't active on the forum any more is the CRIEA president now and runs Asheville Cash Buyers.) And several investors here do their own direct mail/bandit sign campaigns to find their properties.
Mutli-Family (residential/under 4 units) in Asheville right now shows there are 17 active or under contract and over the past 6 months an average of 2/month have sold, so that looks to be more balanced market but with a smaller pool to choose from.
If you go outside of Asheville there are areas where the market is more balanced, if you're familiar with Asheville you'll know that every area outside of town has a different feel.
Hope that helps give you a quick overview of the market.
Investor · Fernandina Beach, FL · Member since 2014 · 557 posts · 374 votes
10y
^ Pat beat me to it but yeah Asheville is an insanely hot market. If you're going to try to find something with direct mail start now and repeat and be consistent.
Indianapolis, IN · Member since 2013 · 16 posts · 2 votes
10y
Ok, It's pretty much decided that Asheville won'y be my primary market. I'll get a cashflowing property nearby and start a yellow letter campaign in Asheville to see what i can get.
We decided to move to asheville because it is one of three places in the US we WANT to live (@Joshua D. Denver is another, I'll keep watching your job board). If i have to rent in Hendersonville, or Johnson City, or even Knoxville I will.
But what is the best way to use my equity, bearing in mind I soon want to be a "happily unemployed" investor, and I'd like to do it in 5 years?
Lender · Denver, CO · Member since 2009 · 1k+ posts · 597 votes
10y
@Paul H. You mention the $270k total equity - is that in one primary home or spread over a few houses?
Not speaking directly to markets (I believe you can make it work in any market), but to your 1st three goals. My wife and I have found the key to our success as we got started was to live far below our means - not top ramen - but very conscious of spending and saving to reach our goals. With that in mind, buy as inexpensive as possible and use the remainder of your equity to start buying cashflowing properties. Save your pennies and repeat.
@Paul H. You mention the $270k total equity - is that in one primary home or spread over a few houses?
Not speaking directly to markets (I believe you can make it work in any market), but to your 1st three goals. My wife and I have found the key to our success as we got started was to live far below our means - not top ramen - but very conscious of spending and saving to reach our goals. With that in mind, buy as inexpensive as possible and use the remainder of your equity to start buying cashflowing properties. Save your pennies and repeat.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
@Paul H. You need to sell your home, I assume you've got some decent gain there. Right now the profits will be tax free, after 3 years they won't be. Then decide where to put that money.
@Paul H. You need to sell your home, I assume you've got some decent gain there. Right now the profits will be tax free, after 3 years they won't be. Then decide where to put that money.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
@Paul H. If you sell your house now, any profit is tax free since it's your primary residence, assuming it has been for at least 2 years. You could rent it out, but if you don't sell it within 3 years you'll lose this tax free status.....section 121, you must have lived there for at least 2 of the previous 5 years when you sell. If you don't have a large gain, then it doesn't matter as much. Just something I wanted to make sure you were aware of.