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Updated almost 2 years ago,
Still a good time to sell? Pigeon Forge TN
HI all, my wife and I have owned and self-managed our 3/2 smoky mountain vacation cabin for the last 5 years earning more than $50k in gross income every year for the last 3 years. Recently, I've had a change of heart with short term rentals and self managing from a distance. While I love doing it, I equally loathe when someone messages about some issue that occurs during their stay. It's also gotten exhausting traveling to it to maintain it, keep it up to date, fully stocked, etc. We have a toddler and another bundle of blessings on the way. We bought at a down time in the Smokies back in 2017 after the fire and love the area and to visit, but we find ourselves dreading the short drive back into town as it's become less fun and more business. Because of this, we are considering selling our cabin that we've invested quite a bit of capital for improvements and updates. The question remains, given the current market and the claim that the Smokies are "oversaturated", would now still be a strong case to sell? To add some additional insight, we have the opportunity to take the equity from the sale, payoff our mortgage on our historic home we house hack as a MTR and add $50k of expenses back into our pockets annually without a mortgage. we are debt free with the exception of a small renovation loan and the mortgage itself. In relation to the $50k we'd get to keep, this is in comparison to the $30k net income we receive annually in rents from the vacation cabin. I'm not a math wiz, but If we own our primary home outright and keep the $50k a year we'd otherwise spend on expenses for it, instead of only earning $30k in net STR income, this should be a no brainer, right? Thanks in advance.