STR Blue Ridge GA Occupancy

[Billie Young]

I'm curious if there are any STR investors in Blue Ridge, GA willing to share their experience(s)? We love the area, but not sure how the occupancy and return compares to other markets such as Gatlinburg.

Thanks! 

[Andrew Simms]

@Mike H.@Billie Young I have been doing the same research myself. We are hopefully (fingers crossed) going to have an accepted offer on an off-market deal in Franklin, NC. I was looking at a few of the North GA and Western NC mountain towns.

I think it will boil down to what are your goals, what kind of property you are able to purchase, and how you manage/market it. From talking with many owners in the various areas in and around Blue Ridge (Epworth, Mineral Bluff, Morganton, Cherry Log, etc.), you could keep it full up to 90% of the year. A few owners indicated they have been at 320-330 days rented for several years. However, that is certainly not the norm. I think you could reasonably expect 60% occupied if you price it right, maybe higher. 

My go/no-go was break even (net 0 cash flow) under the following assumptions: 50% occupied at market rent (based on comparable properties) including 15% of gross rents to maintenance/cap-ex (at 100% occupancy) and utility costs. Another rule of thumb is 2% the purchase price to maintenance. My estimate of 15% always ended up being higher, but hey, what's it going to hurt to be more conservative. Do keep in mind, we are not approaching this from a purely investment standpoint. There will be some personal use. I did also check long term rental rates to make sure it could work from that standpoint if needed. Every additional booking/income above these assumptions is just gravy.