Build to flip cabin in gatlinburg

Contractor · Member since 2020 · 9 posts · 2 votes

Hello all. We have a peice of land in seiver county we are looking to build on. What are appraisals coming in at a sq ft? We are looking to build at $180 to $200 and sell $250 to $275

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Kevin Luttrell

Lender · Orange County, CA · Member since 2019 · 299 posts · 255 votes

Quote from @Todd Goedeke:

@Mack Lengel no investor in their right minds would buy a cabin at $500/ sq ft. There is no way of making money , or very low ConC return ,as a STVR at that price.

They most certainly would in the Smokies, and could still make a good CoC return. We bought our cabin in Sevierville at $430/sqft and it's our most profitable rental.

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Clayton Silva
Lender · CA · Member since 2018 · 637 posts · 393 votes
3y
Hey Brent, that is awesome! We have some pretty good software for estimating value. Want to DM me the address of the lot and the approximate buildout you are thinking? Would need to know bed/bath count, sq footage, and what not.
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Matt Castle
Realtor · Gatlinburg, TN · Member since 2018 · 261 posts · 155 votes
3y
Not trying to give a wishywashy answer but it depends...
Is it owner occupied or short term rental?
How good is location?
Views?
City water/sewer or private well/septic?
I've seen everything from $150/sqft to $800/sqft. Maybe higher if it's a smaller STR with a view.
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Todd Goedeke
Contractor · Sheboygan, WI · Member since 2016 · 917 posts · 266 votes
3y
@Brent Horst check on Zillow or MLS to find out what price per sq ft properties recently sold for.
Why is your cost to build so high? If this is a cabin for STVR there is no need to include a garage.if your property allows for a walkout basement that’s more cost savings.
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Brent Horst
OP
Contractor · Member since 2020 · 9 posts · 2 votes
3y
Quote from @Todd Goedeke:

@Brent Horst check on Zillow or MLS to find out what price per sq ft properties recently sold for.
Why is your cost to build so high? If this is a cabin for STVR there is no need to include a garage.if your property allows for a walkout basement that’s more cost savings.

Our cost to build is higher since it's a traditional log home. I can't really find comps for what we do.
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Todd Goedeke
Contractor · Sheboygan, WI · Member since 2016 · 917 posts · 266 votes
3y
@Brent Horst have you considered split log design rather than full log? Have you considered making interior walls of non log covering?
Is your property conducive to having a walkout basement with livable space? That’s a big cost saver.
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Mack Lengel
Smokies / Greenville, SC · Member since 2021 · 129 posts · 146 votes
3y
Quote from @Todd Goedeke:

@Brent Horst check on Zillow or MLS to find out what price per sq ft properties recently sold for.
Why is your cost to build so high? If this is a cabin for STVR there is no need to include a garage.if your property allows for a walkout basement that’s more cost savings.

Every market is different. 180-200 per sqft is very low in the Smokies, I initially read that and thought there was no way that he was going be able to do it for that price until I saw that he was a contractor and figured he would be doing it at cost.
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Mack Lengel
Smokies / Greenville, SC · Member since 2021 · 129 posts · 146 votes
3y
Quote from @Brent Horst:

Hello all. We have a peice of land in seiver county we are looking to build on. What are appraisals coming in at a sq ft? We are looking to build at $180 to $200 and sell $250 to $275
Would it be a residential home or a STR? I personally like the margins on 1-2 bedroom cabins. Build for 300 a sqft and sell for around 500 a sqft. Lots of factors that go into that and would be happy to discuss it further if you need more insight on it.
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Mack Lengel
Smokies / Greenville, SC · Member since 2021 · 129 posts · 146 votes
3y
Quote from @Brent Horst:

Hello all. We have a peice of land in seiver county we are looking to build on. What are appraisals coming in at a sq ft? We are looking to build at $180 to $200 and sell $250 to $275
Would it be a residential home or a STR? I personally like the margins on 1-2 bedroom cabins. Build for 300 a sqft and sell for around 500 a sqft. Lots of factors that go into that and would be happy to discuss it further if you need more insight on it.
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Todd Goedeke
Contractor · Sheboygan, WI · Member since 2016 · 917 posts · 266 votes
3y
@Mack Lengel no investor in their right minds would buy a cabin at $500/ sq ft. There is no way of making money , or very low ConC return ,as a STVR at that price.
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Brent Horst
OP
Contractor · Member since 2020 · 9 posts · 2 votes
3y
Quote from @Mack Lengel:

Quote from @Brent Horst:

Hello all. We have a peice of land in seiver county we are looking to build on. What are appraisals coming in at a sq ft? We are looking to build at $180 to $200 and sell $250 to $275
Would it be a residential home or a STR? I personally like the margins on 1-2 bedroom cabins. Build for 300 a sqft and sell for around 500 a sqft. Lots of factors that go into that and would be happy to discuss it further if you need more insight on it.
Pm me. I'd like to here what you think about it.
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Kevin Luttrell
Lender · Orange County, CA · Member since 2019 · 299 posts · 255 votes
3y
Quote from @Todd Goedeke:

@Mack Lengel no investor in their right minds would buy a cabin at $500/ sq ft. There is no way of making money , or very low ConC return ,as a STVR at that price.

They most certainly would in the Smokies, and could still make a good CoC return. We bought our cabin in Sevierville at $430/sqft and it's our most profitable rental.
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Todd Goedeke
Contractor · Sheboygan, WI · Member since 2016 · 917 posts · 266 votes
3y
@Kevin Luttrell that depends what you call a “ good” ConC return. Hard to envision a two bedroom cabin at about 1600 sq ft and costing $650-$700k . Add on 15k for furnishings . Achieving a ConC return above 20% very hard at those numbers.
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Mack Lengel
Smokies / Greenville, SC · Member since 2021 · 129 posts · 146 votes
3y
Quote from @Todd Goedeke:

@Mack Lengel no investor in their right minds would buy a cabin at $500/ sq ft. There is no way of making money , or very low ConC return ,as a STVR at that price.

But yet people are still buying and rebuying 🤔
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Todd Goedeke
Contractor · Sheboygan, WI · Member since 2016 · 917 posts · 266 votes
3y
@Mack Lengel you don t think that it’s because realtors think every property is a screaming buy do you?😂
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Ryan MoyerBusiness Member
Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
3y
Quote from @Todd Goedeke:

@Mack Lengel no investor in their right minds would buy a cabin at $500/ sq ft. There is no way of making money , or very low ConC return ,as a STVR at that price.

People are doing it every day.
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