All Forum Posts by: Mitch Davidson

@Tom Palmieri I can intro you to a couple local private money lenders that won't have a problem with the location being rural. I'll message you their info. 

Hi @Jason Berryhill. I live near your target area, and can share insights from what I've seen friends do. And I'm Happy to discuss further if you want to have a call. Below are comments in order of your questions.

• - How can I properly evaluate raw land before buying it, especially with short-term rental goals in mind? A good buyer agent, and one who has experience with building and land sales. I don't think they necessarily have to be STR savvy for this matter. I can help you find one if you like.
• - What hidden issues should I be on the lookout for (septic, zoning, utilities, access, etc.)? You've listed most of the major categories I can think of. And be careful of compromising on some of these matters, as such could put you in a bad position to sell someday, not to mention pull cash out by refi. For example, too steep, twisty, bumpy, and/or long of a climb in nearby roads or the drive will drag down your reviews, income, and resale value. Low water pressure from a well will do the same. With raw land in rural spots of Black Mountain or surrounding I don't think you'll have significant zoning challenges, but keep in mind that Swannanoa is under Buncombe County's jurisdiction, and the county has been musing on STR restrictions for a while now. Thus, you could find yourself in a bad spot if you don't get the home built soon enough. Also, because so many people know that Swannanoa was our "ground zero" for Helene damage I have to wonder if that city above all others would be a touch location for STR income, at least for a while.
• - Who are the key people I need to bring onto my "team" early in the process? Surely a talented local Realtor, namely a local expert who will tell you what you don't want to hear. Next, a lender, so that you position yourself well for the future regarding pulling equity, etc. And likewise, if you want to finance the build itself. I can help there of course. And then some others I'm sure you've thought of, such as a surveyor, developer, engineer, architect, septic/well installation contractor, etc. Some of these people, can intro you to some others.
• - For those familiar with the area, what are realistic ballpark costs for land prep, utility installation, permits, and building a simple but nice A-frame? For .5-2 acres with a buildable spot, unless you're super far away (for example, the part of Black Mountain that's down by Chimney Rock and not super fun for guests regarding driving), I can't imagine the lot will cost less than $100K. And all in, I'd suspect you'll be in the $300K-$400K range but I'm speculating.
• - Would you suggest buying land separately or looking for something that’s already part of a land/home package for a first-timer? There are no first-timer perks for investment properties, nor for construction for that matter. And you won't find a land/home package for what you're looking to do, meaning a STR retreat, a-frame, in that location. Often, whether the construction is for an investment or primary residence, the buyer purchases the land with cash, private money (Derek Robinson is great source locally), etc., and then gets financing for the build. Then, investors often use private or hard money for the build, because it's quick and easy, and because construction type mortgage options are often limited to primary residences. I can help you find financing for the land and build though if you like.
• - What mistakes have you made (or seen others make) that I should try to avoid? I know you fancy an a-frame, but are you sure it'll stand out enough here? One huge mistake STR investors make is setting up a new property that'll just be noise, for example a cabin in a sea of cabins. I would focus on style that'll standout. And I would stay small. Furnishings are a major issue that STR investors overlook. Meaning, how soon will you recoup the investment? It needs to be soon because most of the furnishings won't last for but a year or two. For that reason, I think small is the best play for your first property.
• - Any recommendations for good local builders, prefab companies, or lenders that cater to this type of project? If you want to finance the build I can intro you to a couple options. Also, Alfie Loans (local hard money lender) might be a good fit. And again, Derek or another private money lender is a good option as well. Once you get the build completed, I can help you refi to pay off the expensive financing, whether with DSCR or conventional. For prefab, perhaps check out 7dayaframes. A friend was looking at their DIY packages a while back. 
• - How much extra budget cushion would you recommend building in? Can't speak to that.

Hi @Scott Deetlefs. We have some great options here in Asheville if you want to reconnect once you're local.

Hi @Ben Miller. I live near Lake Lure, and can help you with a DSCR loan (and resources and referrals as well).

We (Movement Mortgage) have an amazing DSCR program. No prepayment penalties for one thing. No restrictions or issues regarding rural properties, or cabins, short-term rental, first time investors, etc. And we underwrite them internally, so much more upfront assurance that the deal will work. Also, because we’re the most common lender in the area, our preapproval letters can be helpful in getting your offer accepted, because the seller’s agent will know and trust us.

I’ll send you my contact information in a direct message.

And if you’re in town sometime soon, I’d love to meet you to one of the two monthly BP meet ups that I host here in Asheville.

Sage advise here, @Travis Timmons. @Yair Zarmon I'd add that you need to put some sort of value on your time. Even at a low rate, 500 hours will surely cost you more than it'll save you in taxes, no?

@David Aylor I live and invest here in Asheville, and we, Movement Mortgage that is, can help you with this. Our in-house DSCR programs allow for STR income qualification, and also allow for cashouts on properties that don't have a performance history or are otherwise vacant. And perhaps best of all, we don't have prepayment penalties. I'll send you my contact info in a message.

Hey Tyler. I'm happy to intro you to a variety of people here in Asheville that can help you if you want to call me. I'll send you my number. And if you're in town for one of our twice-monthly BP meetups, I'd enjoy meeting you at one of them.

Sounds good. Sent you a message.

Hi @Brooke Morton. United Federal Credit Union is the best option in my opinion. I refer business to Jason Chambers over there quite often. Movement Bank, a sister company to the one I work for (Movement Mortgage) is great as well. And as a third option, AgFirst Farm Credit is an option. I'll message you some contact info for these. And we'd love to have you visit one of our local BP meetups sometime soon.

@Lisa Hart. You've traversed some crazy times, moving here just before the storm, buying a place in Swannanoa, etc. Anyways, I saw your note about networking. We have a couple, roundtable type meetups herein Asheville every month, the next of which happens next Wednesday (2/26) morning at 9AM at Citizen Vinyl. No need to RSVP, but if you want to you can do so at our meetup.com page, titled Bigger Pockets AVL Meetup. And if you message me your email address I'll add you to the list we use for events announcements.