All Forum Posts by: Doniel Winter

@ Rob Bergen: what are property developers and builders thinking the likely impact will be? Asheville adopted something similar in 2017, with similar goals, any it didn't move the needle at all on small developments, largely due to fairly onerous building/development requirements (fire safety/open space/tree save/parking) once you exceeded a certain number of units. With the little land available for development here close to the city center, the returns on high end luxury SFR are far greater than small multi-family, unfortunately. I think allowing short term rentals in accessory units might have an impact but our city won't allow it.

http://www.wellsconstructiongr...

If someone's already done it in your neighborhood try and contact the engineer. They'll know a lot and will probably be happy to meet with you. There are a lot of engineer/developers in my area, so you might find a partner there too.

If there's a comparable community under development you could go to the site and get the name of the engineering firm from the contractor, or the plans in the job box. Actual costs will be different, but engineers can get you close, and those costs should be local. It's possible there's a rule of thumb, I just don't know how accurate it would be across geography, there are so many factors at play. On our 7 lot subdivision, the estimate from our engineer was within 10% of the bids we got from contractors.

Phillip Price is the attorney my RE agent uses. My agent is also an investor. There's one for sure I'd avoid, initial of last name is M. You can message me for the first initial, or just go with Phillip.

Dan, Tim Newton Coldwell Banker in Morganton does a lot of business. He just sold my house in downtown Morganton - I still think it's a great long term market, and it's growing.

I don't know much about Boone but a university is always a great market. I wouldn't discourage anyone from investing anywhere, but Asheville is very competitive, in all aspects. There's no more easy money here. Rents lag home prices as well, in terms of (+) cash flow. You can reasonably expect 0-5% return on a long term SFR. There's a housing boom right now, so good contractors are scarce. Nonetheless, beautiful city, great long term investment, great potential for long term appreciation, just not cash flow. My 2 cents. Good luck.

To Lauren B's point, this sounds like it's being priced as a vacation rental business, one in which you'll be doing most of the work. Consider this, brokers that specialize in selling inns and BnB's consider most properties 5 units or smaller a "hobby" - not a real business. You need to be grossing $300k+ for the goodwill value to be considered worth anything. Within the last two years, even established 5 room inns near downtown Asheville, with income histories in the $250,000+ range, have sold for real estate value only. I would take another look @ this.

Whatever premium above fair market value they're asking may be not be worth anything, at least by established metrics in the hospitality market. To Jeff R's point - $98,000 gross doesn't seem unreasonable, but parse that number a bit. For example, does that include cleaning fees? If it does, that is not income, IMO. Professional AirBnB hosts charge up to 25% for managing STR's in Asheville (excluding expenses) - it's a lot of work. Consider including that expense for yourself or a professional when evaluating the income potential.

Hi Laura. Short term rentals (anything less than 30 days) within the City limits are limited to 2 bedrooms in your residence. You must apply for a Homestay permit. You must also reside on the property as well. You can do this in most residential areas of the City, and greater Asheville area. Downtown condominiums have their own restrictions (I believe there's still a temporary moratorium on Homestay permits in downtown condos at the moment). The City goes back and forth on this. Short term rentals of more than 3 rooms OR entire houses are not permitted, and actively enforced. Fines can be hefty.

https://www.citizen-times.com/story/news/local/2018/10/09/asheville-man-1-m-airbnb-fines-has-appeal-denied/1583662002/

The Asheville Municode has all the information. It isn't always easy to interpret.https://library.municode.com/nc/asheville/codes/code_of_ordinances?nodeId=PTIICOOR_CH7DE

Outside the City limits there are no restrictions on whole house rentals short term, for now. If you find an entire house for rent, anywhere near downtown Asheville, it's likely just outside to City limits. Or, some unusual, historical designation of use that's been grandfathered in. And, there are exceptions for houses/property that fall in certain areas with specific zoning, perhaps a house on the edge of a residential neighborhood that abuts to a commercial thoroughfare.

Hope this helps.

confirm

https://www.ashevillenc.gov/service/apply-for-a-homestay-permit/

20% of final sale price of the home is the "napkin number" I've heard other developers of single family shoot for. And up to 70% of that number as a good wholesale price a land developer like yourself brings in a lot for.