Asheville STR gone - advice?

[Lisa Mallory]

Our STR was in Asheville, as are we. Sadly the property no longer exists; it was at 22 Riverbend Drive sitting on the Swannanoa River, and like all nine houses sitting on the river, it was swept away and floated down the river. Fortunately my family is safe, but I have a question for the forum if anyone has advice. Our mortgage was significantly higher than our flood insurance, and I don't know if we qualify to try to apply for FEMA or if there is other assistance, and if so, if we would apply as a business (we file it on our personal taxes as rental income). I need to do research once I get settled somewhere (our other house was heavily damaged by trees falling on it) but thought I'd ask this forum in the meantime.

I'm grateful for any advice that you have, and I hope everyone is safe.

[Jason Taken]

Quote from @Lisa Mallory:

Our STR was in Asheville, as are we. Sadly the property no longer exists; it was at 22 Riverbend Drive sitting on the Swannanoa River, and like all nine houses sitting on the river, it was swept away and floated down the river. Fortunately my family is safe, but I have a question for the forum if anyone has advice. Our mortgage was significantly higher than our flood insurance, and I don't know if we qualify to try to apply for FEMA or if there is other assistance, and if so, if we would apply as a business (we file it on our personal taxes as rental income). I need to do research once I get settled somewhere (our other house was heavily damaged by trees falling on it) but thought I'd ask this forum in the meantime.

I'm grateful for any advice that you have, and I hope everyone is safe.

Talk to your insurance agent ASAP. The insurance should indemnify the mortgagee. 

Sorry for your loss, that's devastating.

[Bruce Woodruff]

Yes, talk to your Insurance Co. So sorry for your losses. But you have your health and your family....you can replace everything else.

[Lisa Mallory]

Our insurance company (State Farm) doesn't cover flood, so our flood insurance policy is through FEMA's NFIP (national flood insurance program). We got the maximum amount they allowed, which is about half of our mortgage.

[Garrett Brown]

Hey @Lisa Mallory , I am so sorry to hear that and I am devastated for all our amazing hosts in that area. I'm thankful to hear you and your family are safe though and that is all that matters.

As someone who deals with tons of floods (Houston STR host), I will give my experiences.

1) Talk with your insurance company asap to see what steps you will need to take. It will easily be your most trusted resource with your specific case.

2) Fema will not cover anything business-related I was told multiple times. You will need to reach out to SBA disaster loans for this. I have a property that has 3 houses on 11 acres. FEMA would only worry about the one that was considered my "primary". Mind you, it was a rental sometimes, but it was still my owner-occupied house technically on paper.


I qualified for an SBA disaster loan covering almost all of my damage. My house did not float away, but I had water damage, a sauna that floated away, and an outdoor area that was destroyed. I will say the SBA never even asked for my flood insurance (which was surprising). It was a lot of documents to submit and time spent waiting, though, for the SBA loan. 

Good luck and I hope everything turns out ok for you! 

[Sarah Kensinger]

Don't have any advice but so sorry you're going through this! Sending you all the hugs and strength you need for the coming months!

[Daniel Kraus]

I'm brand new to the forum and your message caught my attention.  So sorry to hear that you're going thru this.  Glad you are OK.  Prayers for all the victims in your area from Nashville, TN.  I know the battle has just begun.   Get with your agent and ask all the questions related to their experiences with flood claims and what you could expect.  They would be the best place to start.  

[V.G Jason]

Brutal, just brutal to hear and go through. You need to get a loan to cover this, FEMA is absolutely useless to help against STRs.

There's a lot of people in your boat, and likely will band together to get some type of reform. One of my STRs is pretty much done for in Asheville, too. I was told otherwise, but damage was assessed today. My other two will need a healthy $50k-$100k in fixes which isn't an issue but getting someone out there is. I am eating it out of pocket, and going to try to push it back on FEMA and any association that can work with me on it.

The reality is the really rich have coastal properties and they're not going to accept nothing when it's wiped away even if they have hundreds of billions, there'll be recourse. And we need to get in that direction, and when that unfortunate event happens for them there'll be some historical precedent they'll step on. Otherwise, the real estate is worthless or a sunk cost. I bought in the mountains in Colorado, but value it as a sunk cost. Fire can burn it down any moment, and we see fires way too much there. Not everyone agrees with me, and I know that.

[John Mason]

So sorry to hear that but great to know you are safe and healthy!!

[Andrew Steffens]

Very sorry to hear that :(

What is the land value and also the replacement cost i.e. cost to rebuild a comparable unit?

[Lisa Mallory]

I've settled today with my family at a cozy and comfortable rental where we have power and water, and wanted to respond first to thank all of you for your responses -- I'm so grateful for the kind words and information.

I have confirmed what @Garrett Brown shared -- my best option is an SBA disaster loan with a lower than normal interest rate to pay off our mortgage and then I can also hope for / pursue with others a land buyback program for those of us who have floodplain property that FEMA won't reinsure. So much of the land was just taken by the river anyway -- it just re-routed itself and swallowed up most of the land on the riverside of the road.

I do have one more favor to ask -- if anyone has leads on an accountant that can jump in to help us file last year's taxes by late November, I would be grateful to hear -- I still need to get them done, and especially need them done in order to apply for the SBA loan by the December 2 deadline. Had a plan for a January completion, but need a new plan!

Thanks again,

@Garrett Brown

[Collin Hays]

It certainly sounds like you are taking the necessary steps to mitigate your losses.  I have had a home destroyed by fire; never by water. Hopefully your agent can help you out - this is where they earn their money.

[Abigail Gibson]

@Lisa Mallory Did you get a tax accountant? I have a referral who may be able to help. I am a real estate agent who toured numerous homes on driftwood. The last few months have been a tough row to hoe, for sure. I am glad you landed in a safe location at least temporarily.