Newbie looking to invest in STR in Gatlinburg, TN

[Zachary Harr]

Hello, 

I'm a 36yo Physician Assistant in Ohio. Current income is around 350k between the two of us. We have 400k liquid currently. My wife and I have been collecting data and saving up our nest egg for the past several years. We are looking at buying in the Gatlinburg area. Home prices seem to be coming back down from the giant price hikes a few years ago. 

We are looking in the 600-700k range. We have spoken to the Short Term Shop previously. We now have an additional year of savings to use AND home prices have come down since last year (at least a little). 

Any advice would be greatly appreciated! What do we avoid in this market? Anybody familiar with the local area, what areas around Gatlinburg to avoid. Which areas seem to rent out the best? Which areas are the slowest to rent out. Do cabins rent out the best at this price range? Or chalets with unique features? 

For lending, we would qualify for this to be a "second home" mortgage, which would be 5% down payment and increase ROI. We do have enough saved to easily cover 20% if we can't find a bank to offer that option. Recommendations? Credit score is at 800 currently.

Thanks,

Zach

[Avery Carl]

Hi Zachar! The name of the game these days is really setting yourself apart from the other rentals. Anything in the triangle between sevierville proper, Pittman center on the East, and Townsend to the west is going to be in the buy zone, but of course it will also be a case by case basis. The less unique the property, the closer to either g burg or pigeon forge you’ll need to be.