Western North Carolina Short Term Rental Advice

[Matthew Jackson]

My wife and I have been looking to invest in a short term rental in the mountains of Western NC and am looking for advice for good performing areas in terms of Airbnb/vacation rentals in Western NC that are affordable. Asheville would be Ideal as we used to go to college there and are very familiar with the area, but it is very expensive in Asheville. Any suggestions on surrounding areas that are attractive to tourists and affordable? Our budget would be roughly $200,000. Any suggestions offered would be appreciated, or if any agents in the area are free to reach out that would be great!

Thank you!!

[Levi Bennett]

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.