Last updated on June 21st, 2023
airbnb property investment Asheville
Popularly known as the mountain city in North Carolina, Asheville has plenty of exciting outdoor activities not only for travelers but for property investors as well. Some of the famous tourist attractions in Asheville include The North Carolina Arboretum, Blue Ridge Parkway, and Appalachian Trail among others.
It’s highly recommended to learn about buying a property for Airbnb in order to make sure that it’s profitable. To begin with, it’s certainly important to consider the major costs and revenue before deciding to purchase a property in Asheville. Another excellent option is to do rental arbitrage in Asheville City as it’s fairly popular and does not require you to purchase a property.
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“If you are an investor, Asheville real estate has a track record of being one of the best long-term investments. In Asheville, North Carolina, and the surrounding area, there are a variety of investment properties and income-producing types of real estate.”
– Norada Real Estate Insights on Asheville Market
Aside from looking at a property’s fascinating architectural design, proximity to major tourist areas, and accessibility to the best go-to places, the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment.
This includes the best website recommendations for property investment in Asheville, property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. Stoked to learn more? Continue reading!
Top reasons for buying an Airbnb Property in Ashville
Ashville is also known as the “Paris of the South” due to its fascinating architecture and alternative arts scene, this city has a lot to offer to visitors. As if this were not enough, Asheville also has stunning landscapes with a wide variety of outdoor activities. However, there’s more to learn as to why we recommend purchasing a property in this city. Here are some of the major reasons why you should consider buying a property for Airbnb in Ashville:
1. Booming real estate market
The real estate market in Asheville is something that certainly will catch investors’ attention as it offers many profitable properties and on top of that, it’s steadily growing. According to Zillow Index, the median property price in Asheville is $449K with a change of 14.8% compared to last year.
2. Top tourist destination in North Carolina
Thanks to its great location, Asheville has striking views with its architecture and natural landscapes of the Blue Ridge and Great Smoky mountain ranges. This certainly draws a great number of visitors, in fact, around 12M tourists arrive in the city annually to enjoy everything that this vibrant city has to offer.
3. Close to everything
It doesn’t matter whether you’re looking for a grocery store, a hospital, a restaurant, or a music venue because in Asheville you can easily find everything you need without much effort. In addition to that, the city has an overall walk score of 37, making it fairly easy to access most amenities just by walking a few blocks.
What are the cons of buying an Airbnb property in Ashville?
Now that we know the pros of investing in Ashville, let’s take a quick look at some of the cons. It’s always better to look at the two sides of each coin in order to properly set your expectations!
1. High cost of living
The cost of living is also an important factor to take into account when choosing a location to invest in and unfortunately, the cost of living is high in Asheville as it’s 11% higher than the average in North Carolina based on AreaVibes report.
2. Severe storms risks
While you can expect to enjoy Asheville’s mild temperatures, there’s also a risk of encountering heavy storms in the city. This leads to another negative factor since due to the severe rainfall, certain areas are prone to flooding.
Best Neighborhoods for Airbnb in Asheville
Let’s take a closer look at the important Airbnb key metrics to discover which is the most profitable neighborhood in Asheville. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods:
airbnb property investment Asheville
1. South Slope Brewing District
- Annual Revenue: $73,788
- Occupancy Rate: 87%
- Average Daily Rate: $223
2. Historic Montford
- Annual Revenue: $41,929
- Occupancy Rate: 90%
- Average Daily Rate: $129
3. Kenilworth
- Annual Revenue: $33,833
- Occupancy Rate: 71%
- Average Daily Rate: $110
Is Property Investment Profitable in Asheville City Centre?
Using a short-term rental estimator, it was discovered that a 2-bedroom apartment in Asheville City Centre can generate an annual revenue of $91,128 with a steady occupancy rate of 68% and a nightly rate of $339.
airbnb property investment Asheville
Newly Houses & Properties For Sale in Asheville City Centre
Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage.
At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Here are some of the profitable properties in Asheville City Centre along with the calculated gross rental yield, cash-on-cash return, and annual revenue:
1877 Secluded Valley Rd, Marshall, NC 28753
1. Studio-type Mountain/Hillside Property for Sale Asheville
- 7.8 miles Madison Middle School
- Asking Price: $99,000
| GROSS RENTAL YIELD | 21.99% |
| ANNUAL REVENUE | $21,766 |
| CASH ON CASH RETURN | 40.19% |
225 Eastview St, Morganton, NC 28655
2. 1-Bedroom Mountain/Hillside Type Property for Sale Asheville
- 1.5 miles Forest Hill Elementary
- Asking Price: $119,000
| GROSS RENTAL YIELD | 22.49% |
| ANNUAL REVENUE | $26,764 |
| CASH ON CASH RETURN | 41.70% |
26 Walnut Ln Unit 53 & 55, Asheville, NC 28804
3. 2-Bedroom Mountain/Hillside Type Property for Sale Asheville
- Less than five minutes from Asheville’s River Arts District
- Asking Price: $169,000
| GROSS RENTAL YIELD | 22.38% |
| ANNUAL REVENUE | $37,827 |
| CASH ON CASH RETURN | 41.38% |
176 Gashes Creek Rd, Asheville, NC 28805
4. 3-Bedroom Mountain/Hillside Type Property for Sale Asheville
- Near the end of Gashes Creek Road
- Asking Price: $199,000
| GROSS RENTAL YIELD | 25.57% |
| ANNUAL REVENUE | $50,886 |
| CASH ON CASH RETURN | 50.95% |
14 Fortunate Dr, Asheville, NC 28806
5. 4-Bedroom Type Property for Sale Asheville City Centre
- 4 hours 29 mins to Southminster Presbyterian Church, Harding Place
- Asking Price: $299,999
| GROSS RENTAL YIELD | 23.91% |
| ANNUAL REVENUE | $71,484 |
| CASH ON CASH RETURN | 45.96% |
Conclusion
Conducting market research in Asheville is helpful for accuracy and knowing the potential profitability. With stunning landscapes from Blue Ridge and Great Smoky mountain ranges and the variety of recreational activities that attract a great number of visitors to Asheville, it can certainly generate a nice cash flow for property investors. However, it’s recommended to choose the correct neighborhood in order to avoid areas with a high crime rate.
As long as the potential revenue is calculated using an Airbnb profit calculator, it’s definitely worth the time & effort to invest and speak with a short-term rental expert to make the wisest decision for property investment that you won’t regret.
