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Updated over 1 year ago,
Smoky Mountains Glamping Resort for $1m? good deal?
I need some help on dissecting financials for this deal. The property is 4 acres with 5 tiny homes and 1 main house (doublewide). All of them currently listed on airbnb. 40 minutes from Gatlinburg. All of them currently listed on airbnb. Income for 2023 is most likely going to hit $100k. Expenses $28k (Excludes mortgage). Net income $72k. Everything was recently built and seems well maintained. They are about to list on MLS for $1million. If I look based on cap rate it would be a 7.2% cap rate. Is that good cap rate for airbnb? The interesting part is that I could buy it as main residence and live in one of the units and manage the property myself which would make a mortgage a lot easier... But I don't know how the bank would react to a $1million value for tiny homes. I would love seller financing but they want 40% down and I can't do that without getting some other loan. Thanks for any help