STR Investing in Gatlinburg vs Blue Ridge

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STR Investing in Gatlinburg vs Blue Ridge

Christian Wilson
Real Estate Agent · Nashville, TN · Member since 2021 · 9 posts · 5 votes

Hello fellow investors, 

I'm new to the BP forum. My wife & I live in Nashville and purchased our first STR here in January. It's doing great and we now have our sites set on the mountain markets in Gatlinburg and/or Blue Ridge. Both look appealing for a number of reasons (namely, that they've been stable vacation rental markets for decades). My question is, are you seeing advantages to one of these markets over the other in terms of cashflow, occupancy rate, seasonality etc?

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Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
3y

Both are great! Gatlinburg is The Rolling Stones of short term rental. Blue ridge is like Metallica 

Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Calling @Avery Carl! Calling @Luke Carl!

    They are experts in the Gatlinburg area. 

    2Reply
  • Vinod Badami
    Dayton, NJ · Member since 2018 · 53 posts · 18 votes
    3y

    @Christian Wilson I have been looking at the Gatlinburg market also for STR. However I get a strong feeling that it is saturated. The vacancy rate for STRs that are there is higher than some of the statistics that are published...when I read between the numbers. Hope to be proven wrong but will need it to be backed up by hard facts/data.

    0Reply
  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    3y

    Both are great! Gatlinburg is The Rolling Stones of short term rental. Blue ridge is like Metallica 

    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    5Reply
  • Russell T.
    Denver, CO · Member since 2021 · 28 posts · 10 votes
    3y
    Quote from @Luke Carl:

    Both are great! Gatlinburg is The Rolling Stones of short term rental. Blue ridge is like Metallica 

    1Reply
  • Paul Garwol
    Lender · Nationwide · Member since 2022 · 46 posts · 28 votes
    3y

    Take a look at listings in the Poconos Mountains in PA. I just closed deals on five short term rentals in that area for a few different investors. They all had 12 month short term rental history with strong monthly income year round. The short term numbers were the best I have seen in a while and I look at several deals daily all over the U.S.

    3Reply
  • Leslie Anne Morris
    Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
    3y

    I’m not invested in Blue Ridge, I feel like it has less tourist draw. Think more isolate in the mountains in a view cabin. Where as the smokies offers this plus major shopping, dining, activities etc. 

    2Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    3y

    Most of the Smokies will do fine. I and my family own cabins in Cosby, Gatlinburg, Sevierville, Pigeon Forge, and Wear Valley and all of them have impressive ROI.

    My highest yielding properties in relationship to purchase price are in Cosby.  Yes, the annual rents are somewhat less, but the prices are often significantly less.

    I would also strongly consider Bryson City and Maggie Valley.

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    3Reply
  • Brad Hughes
    Specialist · Gatlinburg, TN · Member since 2021 · 14 posts · 5 votes
    3y

    @Christian Wilson top two reasons I bought in Smokys were high CoC and recession resistance. Big CoCs are harder to come by, but rates will come down eventually. Smokys have shown amazing resistance to past recessions. Seems that benefit is baked into prices though.

    1Reply
  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    3y
    Quote from @Vinod Badami:

    @Christian Wilson I have been looking at the Gatlinburg market also for STR. However I get a strong feeling that it is saturated. The vacancy rate for STRs that are there is higher than some of the statistics that are published...when I read between the numbers. Hope to be proven wrong but will need it to be backed up by hard facts/data.


     I’m not finding this to be true with my 5 cabins in the area. They are just as booked as years past. I actually own the oldest Airbnb in sevier county. Which makes me old lol 

    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    3Reply
  • Gerald Pitts
    Lender · Asheville NC · Member since 2016 · 469 posts · 317 votes
    3y

    You definitely want to find a good Spreadsheet Analysis Tool to run your numbers to cut out a lot of the guesswork. Sure you can find on on here with a search. Also, Data tools like STR Insights, AirDNA, Pricelabs Dashboard, Rabbu, Enemy Method.

    2Reply
  • Christian Wilson
    OP
    Real Estate Agent · Nashville, TN · Member since 2021 · 9 posts · 5 votes
    3y

    @Michael Baum I am a huge fan of the Short Term Shop platform! I’ve already connected with STS agents in Smokies & Blue Ridge markets 🤙🏼

    0Reply
  • Christian Wilson
    OP
    Real Estate Agent · Nashville, TN · Member since 2021 · 9 posts · 5 votes
    3y

    @Luke Carl haha! Well, this is tough cause I’ve never really like the stones 😅

    0Reply
  • Christian Wilson
    OP
    Real Estate Agent · Nashville, TN · Member since 2021 · 9 posts · 5 votes
    3y

    @Paul Garwol thanks for the heads up! I’ll definitely look into that market as well

    1Reply
  • Christian Wilson
    OP
    Real Estate Agent · Nashville, TN · Member since 2021 · 9 posts · 5 votes
    3y

    @Leslie Anne Morris that’s a great point!

    0Reply
  • Christian Wilson
    OP
    Real Estate Agent · Nashville, TN · Member since 2021 · 9 posts · 5 votes
    3y

    @Collin H. I’m not very familiar with the surrounding markets so this is very helpful. Thank you!

    0Reply
  • Christian Wilson
    OP
    Real Estate Agent · Nashville, TN · Member since 2021 · 9 posts · 5 votes
    3y

    @Brad Hughes you had me at recession resistance! Thanks for the insight man 👊🏼

    2Reply
  • Christian Wilson
    OP
    Real Estate Agent · Nashville, TN · Member since 2021 · 9 posts · 5 votes
    3y

    @Gerald Pitts love Airdna. I’m not a big spreadsheet guy so I need all the help I can get 😅

    1Reply
  • Vinod Badami
    Dayton, NJ · Member since 2018 · 53 posts · 18 votes
    3y

    All,

    Thank you very much for your replies. They are very helpful. 

    @Luke Carl, @Brad Hughes, @Collin Hays

    Since you all have properties in the smokies I have a couple of questions:

    1. How many years have you folks owned your properties in the Smokies and typically how long would it take for it to start paying back?

    2. One of the points that have been brought up on several posts is 'make you property unique'. However it is obviously not possible to know what thousands of other properties in the smokies have to make them unique. So if I were to go with the basics - for example - 2 bedroom, reasonably well furnished, no unique differentiators. Would that rent? What would be the occupancy rate to expect - just a range?

    What I am thinking is rather than go crazy trying to start off with spending a lot of money on making it 'unique' what could I expect as a return for a basic 2 bedroom?

    @Collin Hays

    Thank you for your suggestions of Maggie Valley and Bryson City. Would you recommend them over the othe places where have properties?

    Thanks in advance all of you for your replies.

    0Reply
  • Gerald Pitts
    Lender · Asheville NC · Member since 2016 · 469 posts · 317 votes
    3y
    Quote from @Christian Wilson:

    @Gerald Pitts love Airdna. I’m not a big spreadsheet guy so I need all the help I can get 😅


     DM me, and I'll send you the one I use.  Pretty straightforward. 

    2Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    3y
    Quote from @Vinod Badami:

    All,

    Thank you very much for your replies. They are very helpful. 

    @Luke Carl, @Brad Hughes, @Collin Hays

    Since you all have properties in the smokies I have a couple of questions:

    1. How many years have you folks owned your properties in the Smokies and typically how long would it take for it to start paying back?

    2. One of the points that have been brought up on several posts is 'make you property unique'. However it is obviously not possible to know what thousands of other properties in the smokies have to make them unique. So if I were to go with the basics - for example - 2 bedroom, reasonably well furnished, no unique differentiators. Would that rent? What would be the occupancy rate to expect - just a range?

    What I am thinking is rather than go crazy trying to start off with spending a lot of money on making it 'unique' what could I expect as a return for a basic 2 bedroom?

    @Collin Hays

    Thank you for your suggestions of Maggie Valley and Bryson City. Would you recommend them over the othe places where have properties?

    Thanks in advance all of you for your replies.


    I am not necessarily recommending them over other areas, but certainly do not exclude them.  There's a lot of "Gatlinburg/Pigeon Forge" or bust mentality.  Good returns are anywhere and everywhere, and ultimately, that's what investors are really looking for.  All that glitters isn't gold.

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    1Reply
  • Brad Hughes
    Specialist · Gatlinburg, TN · Member since 2021 · 14 posts · 5 votes
    3y
    Quote from @Vinod Badami:

    All,

    Thank you very much for your replies. They are very helpful. 

    @Luke Carl, @Brad Hughes, @Collin Hays

    Since you all have properties in the smokies I have a couple of questions:

    1. How many years have you folks owned your properties in the Smokies and typically how long would it take for it to start paying back?

    2. One of the points that have been brought up on several posts is 'make you property unique'. However it is obviously not possible to know what thousands of other properties in the smokies have to make them unique. So if I were to go with the basics - for example - 2 bedroom, reasonably well furnished, no unique differentiators. Would that rent? What would be the occupancy rate to expect - just a range?

    What I am thinking is rather than go crazy trying to start off with spending a lot of money on making it 'unique' what could I expect as a return for a basic 2 bedroom?

    @Collin Hays

    Thank you for your suggestions of Maggie Valley and Bryson City. Would you recommend them over the othe places where have properties?

    Thanks in advance all of you for your replies.


    I bought in January this year.  It started paying back as soon as my first guest checked in.  It's about cashflow right now, not recouping anything in particular.  If the CoC makes sense to you, do it.  As far as making a place unique in the Smokys, yeah it can help, but not necessary.  People go there for the cabin experience, so do that.  All wood interiors and a view will bring in more money.  Flat parking is a big bonus.  That's the basic Smokys cabin formula.  Check AirDNA Smokys data and average 2019-21 revenues to get the closest numbers to what 2022 is looking like.
    1Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    3y

    I have been investing in the Smokies for almost 18 years.  Seen the ups and downs. 

    "Unique" won't be something that you can do to the property after you buy it. The key is to find a property that has inherent uniqueness without stuff you can buy at the store. A great mountain view, a location within walking distance to attractions, or perhaps a trout stream running next to the property where the kids can tube and fish. Of all of the listings on MLS, about 1 percent will be truly unique. But that is what you are looking for. The "needle in the haystack" that cannot be duplicated.

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    5Reply
  • Vinod Badami
    Dayton, NJ · Member since 2018 · 53 posts · 18 votes
    3y

    Thank you all again. Great nuggets of information. It is definitely helping me make up my mind.

    1Reply
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