Mortgage Tips: Buying a Rental Property in Asheville
Should You Buy a Rental Property in Asheville?
There are a lot of people moving to Western North Carolina. Have you considered buying investment property to participate in our robust rental market? If you’ve never been a landlord before, what do you need to know about the process before you make this major decision? And is Asheville a good location for this kind of venture?
Before you take the next step, there are some things you should know about buying rental property in the Asheville area. Let’s take a closer look.
Do you want long term or short term rental possibilities?
There’s a housing crisis in Asheville, which means that rental properties are in high demand. If you are interested in renting out long term to a resident of Asheville, this can be a good way to give back to the community as well as make additional money.
Vacation rentals are also popular in the mountains, but there are some additional considerations. For example, the city of Asheville has restrictions on how properties can be used as short term rentals. There are rules around AirBnB as well depending on whether or not your home is your permanent residence or not.
Are you local or will you be an out of state landlord?
There are a variety of considerations when it comes to what kind of landlord you will be, or you want to be. If you live in WNC, you may have more flexibility when it comes to dealing with tenants and repairs on your property. And your involvement may be as much or as little as you like.
If you’re living out of state and own the local property, it is best to work with a rental agency to help with the process of repairs, rent collection, and more.
What’s the best zip code for rentals in Asheville?
Where you buy can be dependent on a lot of factors, including what you want to spend and the housing inventory of the area. Popular areas for rentals include West Asheville, which is desirable for young families. If you’re comfortable renting to college students, consider the North Asheville area near the campus of University of North Carolina Asheville.
However, the closer to downtown, the more expensive your initial investment will be. That’s true with any city, but Asheville’s housing crisis is driving prices up throughout the area, and this will impact the rent you can get for your home as well.
What are some alternatives for rental houses?
One possible solution if you live in Asheville is to consider whether or not your current home would be a good site for an Accessory Dwelling Unit. This backyard cottage can increase your opportunity for rental income.
Depending on your personal desires, you can either rent out your new ADU or live in the ADU while renting out the larger home on your property.
How do I go about getting a loan for a rental property?
Your financial needs for an investment property will differ greatly from a loan on your primary residence. It’s important that you come to the table prepared, so here are a few things to consider as you get started.
• Talk to investment-friendly lenders.
• Learn your lending limits.
• Have enough cash to invest.
• Prepare your financial documents.
To learn more about this process, contact Prime Mortgage Lending of West Asheville. We know West Asheville’s mission and can help you become part of the community.