Smokys Cabin - Shared Rd situation

[Vincent M.]

Hi folks - looking for opinions on a current decision I am faced with. Normally this would be a big no for me for a personal residence, but want to think it through some more.

We are in the process of purchasing a new construction 4/5 cabin in Gatlinburg. Good views - not million-dollar but very good.  Modern style farmhouse cabin finished well, will be a higher-end rental.  When I went for a walk-through last week the builder/seller casually mentioned that the road is shared, and there should be a shared agreement with other owners, etc.  That being said no one can locate this shared agreement. I have had the title co. confirm that it's not county/state etc.  They also cannot find anything about a shared agreement.   The latest from the title Co is  "let me see if we can put together a shared ownership agreement".  The problem here is someone has to track down all owners and then get them to agree to a proposed road maintenance/plowing agreement. The road is about 1/4 mile with about 9 lots/cabins.  Not a task that can possibly be done by closing - or maybe even this year. And the road is showing signs of wear and tear. 

The deal is a decent deal, with lots of potential to be a very successful STR. This is our first one, so I really do not want any challenges that I can avoid, as I am sure there will be many more to come as we launch. This was not disclosed in the listing or anytime during the contract process.

What do you all think? Am I overthinking this, or is this a no-go out there. 

thanks - Vincent

[Collin Hays]

Quote from @Bill B.:

Ask current owners how the roads been plowed maintained in the past. You’ll probably find out one person knows all about it, maybe even related to original seller/builder. Or you’ll find out someone doesn’t mind doing it because they actually live up there. I’ve run in to both with lake cabins in MN. 

Oh boy.  This is such typical ready/fire/aim behavior in the Smokies right now by so-called professionals.  Just close the deal and forget the details.  It’s embarrassing.  If you can escape this deal, do so yesterday.  You are inviting headache into your probably-busy life.

Since no one bothered to plan for this, someone will have to form a quasi-HOA to take care of the road. Road maintenance includes snow removal, drainage issues, clearing the road of downed trees, establishment of easements for utilities, etc.

Someone will need to be the lead person of the association - probably elected - that collects annual dues from everyone, dispatches road crews, pays them, etc.

Prepare for about half of the homeowners actually paying into the fund.  You’ll need to build up reserves so that there isn’t a cash call for every event.

I've had a STR for 17 years on a private road. Luckily, we have a guy that lives in the development that handles everything. We pay in $400 per property per year, but there are many homeowners that have never paid a dime.