Return Expectations for Gatlinburg/Pigeon Forge/Wears Valley

[Sonya White]

Hi All

I'm a new investor in the Smoky Mountains so any advice and recommendations are greatly appreciated.   What types of returns are people seeing with the current prices and interest rates in the Smoky Mountains? 

I'm wondering if my expectations are too high given the market conditions.  I'm hoping to cash flow between $20,000- $30,000 and cash on cash return of around 15%.  I'm having a difficult time finding anything that fits this without offering sellers significantly less, which would probably offend the sellers.    I'm looking at cabins with 2 beds/2 baths in the $600,000-800,000 price range with a 25% down payment.  Is this an unrealistic expectation?  To see these types of returns do I need to look at bigger cabins and in a different price range?

I will be self-managing because I will be using the short-term rental exception for tax purposes as my husband has a W-2 job.  

[Leora Merrell]

I have five 2 bedroom cabins in the Smokies. Please don’t pay anywhere near $650-800k for one that size. You can find bigger for that price. It might take time but don’t buy one just because you feel the need to get in asap.