First time investor - need advice on price expectations

[Saranya Sundararajan]

Our first real estate investment and we want to get into STRs. Looking in the $500K-$750K price range. Have enough cash reserves. I want to start closer to the lower end of my budget ideally but I feel like the 1beds and 2 beds may not be the best investment in today's interest rate environment. Considering the smokies, PCB, maybe Blue ridge but not comfy with the fact that the STR rules are still developing and changing there.

I was keen on the Smokies market - due to 1) mature str market 2) People will always go there for vacation. Goal for my STR is to make positive net-income - atleast $15K-20K a year.

From my research, the smokies looks saturated clearly. I plan to self-manage. I saw this 3bed 2bath (although sold as 2bed maybe because of the loft) sold for $737K and the listing says the STR can bring it $100K (probably based on airdna rentalizer) : Recently sold $737K 

this is in my budget but i am curious - this feels very high to me for purchase price :$737K, putting 20% down, ADR says $376 a night and 71% occupancy ( giving rental revenue at $101K)

Operating Expenses

$ 32,621

Net Operating Income

$ 68,382 

CoC rate = 48%

If these are true numbers for a property like this then I might be in but wanted to see what other thought? What would be the more realistic returns? 

My criteria for the property would be - close enough driving to attractions, view must, Cabin, big windows into mountains kind of a feel, some cool things to offer - pool table etc

Thanks - I know the Smokies are a tough market and you really need to find a good property and I have time (I know which realtor I will likely work with) 

any other places I should maybe be open to?

[Leslie Anne Morris]

I don’t think the Smoky Mountains is a tough market. I bought two last year both over 20% cash on cash. You have to buy the cabin that most people are looking to rent and run your underwriting conservatively. Now especially is a good time because we’ve seen other investors fall out. This has created more opportunity for those who are still investing.