Land and building a cottage in Bryson city
Investor · Bay Area, CA · Member since 2022 · 20 posts · 3 votes
Land and building a cottage in Bryson city
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Investor · Bryson City, NC · Member since 2013 · 162 posts · 122 votes
2yLots of good advice in the thread, I've been building in the area since 2004 and investing here since 2013, I'm still bullish on Bryson City but we have pulled back from building any more STRs for our portfolio currently. I also have quite a few of sub 500 sq ft builds and a container home that do extremely well on price to rent ratio, but were all built prior to 2021. Bryson can be extremely frustrating to build and manage properties and I live here, have a construction company and a large sub network (my rentals in Canton and Hendersonville are way easier to manage due to the locations actually having reliable subs). I think this is a great place for an investment property but you will need to temper expectations for a ground up build and property management and I would not expect strong cash flow out of the gate. I would highly recommend finding property within 10-15 minutes of downtown. On the plus side, Swain County is one of the easiest places to build from a permit/building inspections perspective in western NC.
11 Replies
- 2yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
Hey @Arpit Guglani. So you would want to build a standard stick built cabin or something like that.
First thing I would do is check with the city/county to see what the permit cost will be, what they allow, what the lead time is etc.
I would avoid tiny homes, etc. The value isn't there for the unit itself. You would want to have a property that would appreciate.
You want a piece of land that allows STRs, has power and water nearby. Sewer if it available would be nice. Easy septic if not.
There is really a ton of things to look out for when getting started. More will chime in.
- Member since 2022 · 1k+ posts · 1k+ votes2y
What @Michael Baum said . . . Which is really just a starting point. Keep in mind that this is a rural area with a lean labor pool and a long drive to the nearest home depot. Towns like that aren't exactly full of skilled labor and contractors waiting around for someone to give them work in times like this.
- Investor · Member since 2022 · 1k+ posts · 754 votes2yEverything Mike said + time.
Quote from @Michael Baum:
Hey @Arpit Guglani. So you would want to build a standard stick built cabin or something like that.
First thing I would do is check with the city/county to see what the permit cost will be, what they allow, what the lead time is etc.
I would avoid tiny homes, etc. The value isn't there for the unit itself. You would want to have a property that would appreciate.
You want a piece of land that allows STRs, has power and water nearby. Sewer if it available would be nice. Easy septic if not.
There is really a ton of things to look out for when getting started. More will chime in.
Building especially in a STR market is going to take for literal ever. - 2yJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
Quote from @Michael Baum:
Hey @Arpit Guglani. So you would want to build a standard stick built cabin or something like that.
First thing I would do is check with the city/county to see what the permit cost will be, what they allow, what the lead time is etc.
I would avoid tiny homes, etc. The value isn't there for the unit itself. You would want to have a property that would appreciate.
You want a piece of land that allows STRs, has power and water nearby. Sewer if it available would be nice. Easy septic if not.
There is really a ton of things to look out for when getting started. More will chime in.
Like Michael said build bigger than a tiny hone size. This size might be all you need but think about the rentability to a small family. 2 bedrooms would be minimal but 3 bedrooms would be even better.
Are you going to be on the river since you mentioned Kayaking?
Either way if your close to the river or lake you can still provide kayaks so people can do the same as your wanting to do.
Have a nice fireplace / outdoor space.
Check out all the rules and regulations before you get started.
If you have trouble with labor you could consider just putting a really nice camper on the land.
- 2ySarah KensingerPro MemberReal Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
Definitely check out the area, talk to realtors and contractors, as well as check the STR market. I'm not sure why everyone is so against tiny homes, in some locations they do extremely well! For some it's a quick and easy way to get something built without spending a year going through the building process. Unique container homes and a-frame homes are quite popular and could be built to give a guest a unique STR experience. In my area there's a container/tiny home company that builds the home, delivers, and finances it. You may be able to find a similar company that does the same in your area.
- 2yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votesSo it's not that I am against tiny homes. They are not something that I would use personally, but I can see the appeal to some folks depending on the area.
Quote from @Sarah Kensinger:
Definitely check out the area, talk to realtors and contractors, as well as check the STR market. I'm not sure why everyone is so against tiny homes, in some locations they do extremely well! For some it's a quick and easy way to get something built without spending a year going through the building process. Unique container homes and a-frame homes are quite popular and could be built to give a guest a unique STR experience. In my area there's a container/tiny home company that builds the home, delivers, and finances it. You may be able to find a similar company that does the same in your area.
The biggest issue I have with most tiny homes is that they are often not considered real property. Most are on a trailer or simple non permanent foundations. They aren't considered real property. They wouldn't add any value to the lot.
If you are going to go to the trouble of starting from scratch, built a real concrete foundation. Once you do that, why build a 200sqft tiny home on it? Just go with a 1200sqft or even 800sqft cabin.
Even if you bring in all the utilities etc, the value isn't there once you are done.
That is just my 2 cents. I don't use appreciation to justify a low performing STR but in this case, appreciation is an important part of the overall equation. - Lender · Asheville, NC · Member since 2020 · 463 posts · 507 votes2y
@Arpit Guglani As an STR owner in Bryson City, I heartily second what @Jon Martin said above. This is a town of 1,000ish people surrounded by much smaller towns. The nearest big box stores, Lowes and Walmart, are 45+ minutes away from Nantahala. Work also goes very slowly due to lacking help, meaning often times the people that could help you are hard to find, unavailable for a long time, or just unmotivated. And many of the other helpers you can find aren't super skilled for what you need. And have fun finding good, quick help for site development. That alone can take over a year, despite some empty promises people might give you. If you can get the site dev done you can bring in a modular. If you want to stick build though be prepared for a much longer journey. @Kyle H. has many STR's there and can tell you more of the harsh realities. And can maybe help you too.
And I second @Michael Baum's concerns about building too small. If the place can't appraise because it's too small, or worse because it's not real property (ex: a park model cabin), you'll have no opportunity to pull cash out by refi, and you'll have very few buyers when you try to sell someday. In my opinion the exit strategy has to be one of your top priorities, even if you plan to keep the place forever.
- 2ySarah KensingerPro MemberReal Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
Quote from @Michael Baum:
So it's not that I am against tiny homes. They are not something that I would use personally, but I can see the appeal to some folks depending on the area.Quote from @Sarah Kensinger:
Definitely check out the area, talk to realtors and contractors, as well as check the STR market. I'm not sure why everyone is so against tiny homes, in some locations they do extremely well! For some it's a quick and easy way to get something built without spending a year going through the building process. Unique container homes and a-frame homes are quite popular and could be built to give a guest a unique STR experience. In my area there's a container/tiny home company that builds the home, delivers, and finances it. You may be able to find a similar company that does the same in your area.
The biggest issue I have with most tiny homes is that they are often not considered real property. Most are on a trailer or simple non permanent foundations. They aren't considered real property. They wouldn't add any value to the lot.
If you are going to go to the trouble of starting from scratch, built a real concrete foundation. Once you do that, why build a 200sqft tiny home on it? Just go with a 1200sqft or even 800sqft cabin.
Even if you bring in all the utilities etc, the value isn't there once you are done.
That is just my 2 cents. I don't use appreciation to justify a low performing STR but in this case, appreciation is an important part of the overall equation.I get that, but the price difference in building materials is twice or three times more. Plus, it's a novelty for guests that don't live in a tiny home but maybe a 1000-1500 sq ft one.
- 2yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
Sure @Sarah Kensinger. I hear ya. I think it would be fine as long as @Arpit Guglani knows the reasons for larger home vs tiny home.
- Investor · Bryson City, NC · Member since 2013 · 162 posts · 122 votes2y
Lots of good advice in the thread, I've been building in the area since 2004 and investing here since 2013, I'm still bullish on Bryson City but we have pulled back from building any more STRs for our portfolio currently. I also have quite a few of sub 500 sq ft builds and a container home that do extremely well on price to rent ratio, but were all built prior to 2021. Bryson can be extremely frustrating to build and manage properties and I live here, have a construction company and a large sub network (my rentals in Canton and Hendersonville are way easier to manage due to the locations actually having reliable subs). I think this is a great place for an investment property but you will need to temper expectations for a ground up build and property management and I would not expect strong cash flow out of the gate. I would highly recommend finding property within 10-15 minutes of downtown. On the plus side, Swain County is one of the easiest places to build from a permit/building inspections perspective in western NC.
- 2yCollin HaysBusiness MemberProperty Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
Building is the first mistake, as it is almost always less expensive to find an existing dwelling than to build. And even if it was possible to build cheaper, you've lost all of that money in opportunity cost, in the 1 to 1.5 years it takes to build it and you aren't earning any revenue. I've done it both ways, and building is the way more expensive route.
Find something that 1) You can afford, 2) Has good rental income and price appreciation potential, 3) Can start earning for you the day that you close.
If I was going to take the time and effort to build, I would build something that isn't on every street corner. I'd probably build a genuine stacked log cabin without all of the fake stuff - real stone fireplace, high quality wood casement windows, etc. I would guess 90 percent of "cabins" in the Smokies are cheap fakes. We live in a world of faux things and I hate it. I was forced to build a cabin after I lost one in a fire, and this is the way that I went. Many guests in the Smokies enjoy staying in a real log cabin.
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