Looking for some feedback on STR opportunities in Pigeon Forge/Gatlinburg TN area

[Ernest Fox]

I am exploring the possibility of buying a STR - this would be my first time owning any rental property, so I have a bunch of newbie questions. One area that has caught my attention is the Pigeon Forge/Gatlinburg TN area - seems like there is a good rental income to acquisition cost ratio.

So here are the questions.

- I am in the DC Metro area, about 8 hours away....how do folks using VRBO/Airbnb handle check-ins for properties when done remotely?  I will need to self manage through VRBO/Airbnb in order to help classify the income as active income so that I might be able to right off the accelerated depreciation against W-2 income.

- I have about 150K available for a down payment, any suggestions on the type of property to target (cabin, condo) if the goal is to be around cash flow even?

- Any recommendations for a real estate agent in the Pigeon Forge area?

- Any recommendations for which condos to target/stay away from?

- Recommendations for maintenance/cleaning services?

- What dates are considered in season/out of season for Pigeon Forge?

Any and all info is appreciated.

TIA

[Collin Hays]

Quote from @Ernest Fox:

I am exploring the possibility of buying a STR - this would be my first time owning any rental property, so I have a bunch of newbie questions. One area that has caught my attention is the Pigeon Forge/Gatlinburg TN area - seems like there is a good rental income to acquisition cost ratio.

So here are the questions.

- I am in the DC Metro area, about 8 hours away....how do folks using VRBO/Airbnb handle check-ins for properties when done remotely? 

I will need to self manage through VRBO/Airbnb in order to help classify the income as active income so that I might be able to right off the accelerated depreciation against W-2 income.

- I have about 150K available for a down payment, any suggestions on the type of property to target (cabin, condo) if the goal is to be around cash flow even?

- Any recommendations for a real estate agent in the Pigeon Forge area?

- Any recommendations for which condos to target/stay away from?

- Recommendations for maintenance/cleaning services?

- What dates are considered in season/out of season for Pigeon Forge?

Any and all info is appreciated.

TIA

1.  Checking in guests from 8 hours away will be the least of your concerns.  Send them a keypad code or key box code.

2.  Self managing is fine, and active you will be. 

3.  If you are putting $150,000 down, you should be able to positive cash flow pretty easily. I personally would put down 20 percent and keep the rest of my cash, even if it meant I wasn't "making money" in the beginning. But that's a personal preference thing.

4.  My agent of choice is Darlene Derosia. I think it is important to find someone who has been in that market for a couple of decades. Lots of newbies that have come onto the scene in the last 3-4 years during an extreme bull market, who have never lived through a bear market. Many have gone silent in recent months.  You need someone with years of experience in the market. 

5.  Stay away from anything that won't rent well in down markets such as we are in right now. Darlene will be able to tell you if a property will do well.

6.  Maintenance and cleaning, by far, are going to be your biggest challenge from 8 hours away. You'll have to travel to the area and start trying to round up some folks, and some capable backups if one of your regulars gets put in jail or strung out on meth.

7.  PF is year-round, if you have a good property.

Go get' em!