Analyzing a Short-Term Cabin in Sevierville & Smoky Mountains

[Kyle Nolen]

I'm a new (potential) investor who has been actively working my contact networks to find my first property. I recently received an off-market lead to a seller who has 2 vacation rental cabins that are for sale on a single lot in a very popular part of Sevier County. The asking price seems compelling and I've been able to secure financing. Similarly, I have 3-years worth of rental history and other rental history comps to give me a great idea on revenue. I also have histories for utilities, taxes, and insurance. However, the part that I'm struggling with on analyzing this deal would be how to project long-term expenses like CapEx, Maintenence, and Repairs. What would be a conservative percentage of revenue to set aside for CapEx, Maintenence, and Repairs (on average) to help with final analysis on this deal?