Looking to invest around Cosby/Gatlinburg with partners

[Dhruvrajsinh Parmar]

Hey all investing newbie here. Me and 2 other friends are looking to get started on our real estate investing journey. We each have funds that we would like to diversify. We are currently looking at single family home in the area around 300-400k with 20% down and STR potential. We have been told multiple people(mostly lenders) that we might not see cashflow with 3 people unless it's a multi family unit. We are aware of this but we still want to start small to minimize risk and slowly expand. Any advice/thoughts are appreciated.

[Richard Elvin]

@Dhruvrajsinh Parmar "We are currently looking at single family home in the area around 300-400k...". I think you're a couple of years too late, or maybe six months too early, to find something in this range around Gatlinburg/Cosby. Search Gatlinburg or Smoky Mountains in the forums and you'll find lots of great reading! Once you've done that, consider if househacking might be a better option? You could buy a lot more at 3.5%, or even 5%, down vs 20% for investment.

Personally, I would be very hesitant to invest with friends. If you decide that's the route to go, then you'll need a bulletproof partnership agreement. (Or operating agreement if the three of you create a multi-member llc) Make sure the three of you are on the same page, what if one of you gets a job offer out of state, the investment is needing repairs, one of you gets sick/passes away? Life, and death, happen. You'll need to know in advance what the expectations will be.

Congrats on getting the ball rolling! I wish you the best!