All Forum Posts by: Abigail Gibson

I live and invest in Asheville/Western North Carolina. Its a beautiful area that is only going to continue to appreciate over the next 10+ years. As people look for more affordable places to live, many have identified the South as a good place to focus their efforts. You can sell a condo in CA and buy a big, beautiful home with incredible view here. It is difficult to hit a 2% or even a 1% return, but people aren't going to stop moving to NC anytime soon, which has been emphasized by COVID, so for a long term hold NC is a great place to put your money. As places like Austin and Portland and Denver become larger and more expensive, Asheville has become a very attractive alternative.  That being said, Asheville has a shortage of jobs, so it will be hindered in its growth by either A. big businesses coming here or B. people's ability to work remotely. 

@Dave Foster "No one ever went broke paying tax on profit." This is really great advice. Maybe I will start following your comments for nuggets like this one.  :)

@Jason Merchey let’s arrange one in DMs!

@Jennifer Lombardo HomeTrust is a great local lender as well as Movement Mortgage 

Hey @Tom Palmieri, I could be wrong, but I do not think these records are easily accessible online. I do know for sure that you have to go down to the city to see tax foreclosures and to bid on them. You then have to follow up about once a week, at the city, because there is a 10 day upset period in NC. 

Totally, DM if you wanna connect and chat more.

Definitely do your research on the area to make sure they allow STR home AND there doesn't seem to be any unified group fighting for the limitation of STR. I say that because as more and more investors come into our market, the more and more locals are going to get frustrated with them and push to have rules change. It happened in parts of Woodfin (just north of Asheville) and it may happen elsewhere.

Weaverville allows STR and I know they do well, I would just stay out of the actual Weaverville town and stick to the Reems Creek District.

Cabins do very well in Waynesville, but it is crazy competitive to purchase there now. Large home STR do well in Leicester, as they cater to the large groups of bachelor and bachelorette parties we (at least used to) have in our area. The price of STR in Asheville has really shot downwards since so many have come on the scene. I have heard that just over the NC border into TN around pigeon Ford/the Smoky Mountain National Park does great, and those are your cabin style homes (some of the others I mentioned aren't). Black mountain has some cute areas for cabin rentals, but whenever I rent one, it is generally in the hotsprings/Marshall area.

Hope that helps!

Hey Jason, 

I haven't seen anything come across my plate in the fractional ownership world, but this strikes me as a modified syndication/or modified timeshare model. 

I think our local real estate investors group would be a good group to get interest going in something like this. I think the issue would be the ownership structure in relation to passing something on - if someone who owns the property dies, is it inherited by their multiple children and then you have to navigate all of their schedules and desires, or is it owned in joint tenancy -- if you happen to die before you sell your shares you are just unlucky because the ownership is redistributed to the other owners and not passed onto heirs? I know both scenerios could be tricky to navigate. I may be over thinking the whole thing, there may be a model where everything is very clearly written out by a lawyer so that you don't have issues later.

I do know a few people in Asheville who own property with friends, and they all share it/use it when they want to, but it is always with someone they know very well. 

It seems that @ryanhowell has been the Asheville Real Estate block, maybe he's done a deal like this.

@Travis Richardson and @Brian Goff, like most places, real estate is crazy in Asheville right now. Our firm has had discussions of building prices being between $250-$300 and builders are often booked out a whole year. I am currently working with a builder in the area for one of my clients, they specifically build cabins, and they are thinking that the supply shortages that we have been seeing are going to ease up in the next few months which should help things move a little faster. 

If you don’t have a piece of land already under contract, take my advice and spend some money to get a nice lot. You can get inexpensive land in the area but it will likely be on the side of the mountain where you spend an enormous amount of money for a foundation or to move land around. 

Feel free to DM if you have more questions 

Thanks @Dave Foster . I haven't run an IRR on the property, but I have heard that is going to be the most comprehensive way to a run the numbers.

I have a buyer lined up for the other rental home that is reliable, should I decide to pull the trigger on new real estate moves, so I have some time to figure out the 1031 process without the 45 day limitation. 

My only other question at this point, is do I only need to roll over the amount of money I have made from the sale of the property into another property to avoid the tax implications. i.e. say I net $200,000 from the sale of the rental house but i put $100,000K down payment into it and $10,000 in repairs while it was a rental as well as $5000 in closing costs. Would that mean my potentail tax liability would only be on $85,000? ((200,000 - (100,000+10,000+5,000)) 

Thanks in advance

@Dave Foster