@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!
