All Forum Posts by: Levi Bennett

Hey Stephanie, I operate a team based near Charlotte, and all I've done for 10 years is Investment Brokerage in the residential space. Including multi-family. There are several good ones, but my advice to you is make sure whoever you are working with can speak the language and not just saying they're "investor friendly" but have no idea what it actually means, and is an investor themselves. 

Agreeing with @Carlos Ptriawan, it is a bit of a post-recession for STRs.. HOWEVER, there are certain areas that are dealing with different layers, like.. massive migration to the Southeast Region of the US, which means tourist areas near those areas (beaches and mountains) are still exploding and breaking records for STR market cap (money spent by guests on rentals). So, I think it definately takes more savvy these days, but there is still low hanging fruit in the Carolinas, Georgia and Florida everywhere I look.

Hey there, welcome to BP. You described my entire region of specialty. I'm in the process of creating a regional brokerage for newer investors to get real help with acquisition, and consultation on STR, MTR and LTR success in the residential space. I've been an investor and broker for the last 10 years in FL and NC, and specialize in the mountain regions, and beach regions because that's where most of the tourists, and investors who want getaways, invest (certainly there are many other interesting markets to invest however, booming wine country for example..)

To add to it, I love the environmentally responsible home building, that's something I've had an interest in for a while, and I've worked with several contractors and architects in the last few years to come up with a useful plan for alternative and environmentally responsible building materials. 

I will say, generally speaking, building new can be an annoying and cumbersome process if you're new to it. And obviously, it rarely cash flows unless you can find property with an existing source of income that can be added to (a savvy strategy actually). 

I will say, when looking, use as much useful data as you can, but more importantly, work with people who know how to interpret the data. There's a lot of contextless data flying around and there is a big difference between people who want to sell you something in the short run, and people who want to see you succeed in the long run and they'll use the data to suit their needs. 

I would say first step if figuring what kind of goals you're looking for, and then going backwards from there. Some people want cash-flow from day 1, some people want to invest long term, some medium term... all different strategies that would require a custom tailored approach. 

Best of luck! I'm happy to help. 

I sent you a message about this, please reach out at your convenience

Hey Sabrina, and welcome. Be sure to read my post about this very topic that I think you may find helpful. Most investors are looking into the medium-term rental space as this is the biggest emerging market in the area. MF can be good for cashflow, but rates of return are notoriously low here due to extremely low inventory and extreme demand from foreign investors. Not to say it's impossible, but the competition is fierce. If you're looking for ROI, I would explore some of the other opportunities in the area. I'm happy to chat more about it if you're interested. Best of luck!

I'm in Mooresville (North Charlotte) personally, but have specialized in investment homes for 9 years in Florida and all over Western NC. You have a good observation, I actually wrote about this here on a biggerpockets a while back, you can read it here.

MF is doable here, but inventory here is very low because of zoning trends. There's a lot of ways to capitalize on cashflow and BRRRRing in our market, it's not limited to MF, but STR, and especially MTR (medium term rentals) around Lake Norman. There's a lot of corporate housing needs for furnished monthly contracts, as well as a significant amount of development where people move here from out of state and need a place to stay while their house is being constructed. There's a lot to talk about here, and multiple entry and exit strategies, but if you want to discuss more, feel free to reach out.
I hope this helps! Best of luck to you!

Hey there, welcome and great question. I think you're off to a good start. I wouldn't pigeon-hole yourself to a location, this is a common mistake that new investors make. If your goal is ROI, then seek ROI with someone who can help you underwrite, don't make it about location.

Location is one of 7 value layers I consider when helping clients find STRs (I've been doing it for 9 years, and have closed over 30 in the last 18 months). The acquisition is everything, and things like views, interior design, uniqueness, availability, bedrooms per dollar are other things to consider.. the more "value layers" you can stack, the better chance you will have at standing out. Sometimes that is in a commonly desired location, and sometimes it will surprise you and be in a location nobody thought of. The actual property itself, layered with the type of demographic that will rent the property, is more key to a successful STR / MTR than just location alone. I've seen this mistake made over and over. Be careful of saturation for different types of properties in a particular area (for instance, one zip code might be off-the-charts for return, but 3 bedrooms are over-saturated and difficult to occupy, this is the "availability layer"). Use a realtor or someone who has access to PAID data that give deep insights into the specific markets you're looking at so you can select a property that has a high chance at being a top 10% performer.

If you want to look at locations, there are several places in NC that can meet these goals, beach, urban or mountain (some good ones were mentioned above).. but I would say it depends heavily on your goals, your budget, etc.. work with someone that can work with you to maximize ROI.

Best of luck to you, and I hope you find this helpful!

Hey Joseph, welcome to the community! I'm a broker in NC, investor and have been doing STR and investment real estate for clients and myself for 9 years in North Carolina and Florida.

The beach can certainly be a good investment, but comparing it to the mountains it will be hard to make a case. Seasonality at the beach is dramatic, and weeks or month long contracts are easy to obtain almost anywhere in the South because of housing demand shortages, particularly in places like Charlotte (8000 listed homes, and 60,000 applications for those homes for medium term rentals). You can definately do well at the beach but keep in mind a few things.. one is the homestead exemption for SC is dramatic. Most investors pay 6-10x more in taxes per year for an investment home there, and that can kill ROI. The other thing, back to seasonality, is that peak season in obviously summer, but in the mountains you have 2-3 peak seasons. Summer, Leaf, and holidays (and ski season if you're close to a ski area). Cash flow tends to be more consistent in the mountains. If you're set on a beach area, I would allocate more money for at least a 4 bedroom (big revenue jump for multi-family stays..) and focus on Florida since the seasonality is significantly longer than even Georgia or SC.

Finally, do NOT fall into the newbie trap of thinking location is everything. If your goal is ROI, then don't make your goal location, make it acquisition and ROI. There are several layers to acquiring an STR/MTR and one of them is location, but if you leave out the other 6 layers, you could be stuck holding the bag and doing marginal, or worse, losing money because the other factors weren't considered. Definately work with an experienced STR agent wherever you go and use someone who not only knows how to underwrite STRs and has paid data to help you do that, but also someone who understands the fundamentals of what makes a successful STR/MTR and give you the best chance at succeeding and being in the top 10% of property listings.

I hope this is helpful, best of luck, and feel free to reach out if you need anything.  

@Tyler Sherman I think I should chime in. Before I get into it.. I own 5 properties in NC, and have brokered 30+ STRs in NC around Charlotte and Western North Carolina in the last 18 months, and have been doing STR, Multi-family, MTR, and LTR acquisitions and disposition for over 9 years. So I'm not just a random guy chiming in. I have lived in Charlotte most of my life, and specialize in investment acquisition.

First of all, the questions you're asking are really good ones, but you'd be served well to work with someone with experience in LTR, MTR, and STR acquisition so that they can help you sift you through the data and discuss the pros and cons with some actual experience. Nothing against @Eliott Elias but, the truth is, your strategy should align with the goals you have. In some cases that is LTR, other cases that is MTR or STR. There's simply not enough information about you to determine your goals and how best to meet them. Knowing the pros and cons and having PAID data is helplful. I have a full state-wide license to use AirDNA (opinions will differ on this, but here's mine..) and it is, by far, the most accurate. That's coming from experience in comparing my clients performance to actual P&L's that have been sent to me to review. Rabbu is typically low, and inaccurate in certain markets, and Pricelabs have been having issues lately (there's been a bit of an exodus lately into different software platforms). I also pay for Mashvisor, and have spoken to the people at Awning and honestly most of the data just stinks. I can explain why more technically, but basically everyone is scraping the data differently, and weighting things differently.. Also, there is a lot of useless data that is heaped in that isn't helpful and makes the underwriting confusing. 

Most importantly, what @Anne Sargeant said about exact location, and TYPE OF HOUSE is going to be massive. Maybe in one zip code 3-bedrooms are completely over-saturated, but 4+ bedrooms are in high demand. Layer that with a unique style house with a unique feature to the property and you get one that will do 180% more revenue. STR is not a passive investment, so looking at overall numbers are always misleading. You can always beat the projection by stacking "value layers".. things like unique architecture, bedrooms per dollar, views, amenities, interior design, availability (mentioned above) will be your drivers of revenue more than actual location.. so, while location is important, in my opinion, it is NOT the MOST important thing when underwriting. 

Also, from a legal perspective, you can check out this blog I wrote last year after the Wilmington appeals case was lost: "Short Term Rental Restrictions in North Carolina"
The biggest news that's happened since then is that there is a bill that has been introduced to completely ban regulatory restrictions by local governments on STRs, however, it hasn't been added to the house vote yet, so it remains to be seen.. NC, as a state, has been extremely friendly to STRs historically.. there's a lot of reasons why but it's rooted in private property law interpretation here that's very favorable to the owner. In many cities however, you will find there is a big desire to regulate or restrict STRs due to the affordable housing crisis here, so.. we'll see what happens, but for now, that blog I wrote is still accurate and explains it in more detail. 

Finally, since you asked.. here's a few screenshots that might help a little bit. 

Just on quick glance, you can see that 1-3 bedrooms are very overcooked and you'll have an uphill battle getting occupancy. You'll have wind in your sails as Airbnb will boost your listing as a new property for the first 12 months, but in the long run, having a 4+ bedroom is going to be much easier to stand out. In general, you can see the steady growth in market cap, which shows a healthy market.

Not to open another can of worms, but another reason to speak with someone local will be to discuss the plethora of exploding areas around the city that are ripe for STR and MTR growth.

A quick note about MTRs.. in the Charlotte-Metro area in 2022, there were 8000 total listings for MTRs and 60,000 applications. Take that for what you will, but the strategy among the most successful investors here is to buy with the intention of multiple exits, including STR, MTR and possible LTR in the future, and listing across multiple platforms, say STR and MTR at the same time, and take the tenants that make the most sense. 

There's a lot more to talk about, but I hope some of this is helpful. Feel free to reach out if you have any questions. Good luck!

Im pretty sure we have the largest short term investor meetup group that meets regularly in Charlotte. We’re at heist brewery in NoDa  tonight at 6:30. You can find the event on Facebook.