A refresher on what to look for when buying in the Smokies

[Collin Hays]

It's been a while since I posted on this, and I get a lot of questions on it, so here goes:

1.  Location matters.  Gatlinburg is ground zero.  You will pay a premium to be there, but it will probably pay off in the long run.

2.  Location matters, part II.  Don't buy anything without a spectacular mountain view, unless it is on a trout stream.  Both are good; the latter is much harder to find.  Nice cabins in the woods are a dime a dozen.

3.  Construction style matters.  Most folks visiting the Smokies want a cabin experience.  Most of the new construction is stick-built contemporary with cheap brown or black Masonite.  These properties will age about as well as that green banana sitting on your breakfast table, and the resale in ten years will be atrocious, because the homes will be out of style.

4.  Your cabin will be set apart by the above, not by things you can get at Lowe's or Walmart.  You are looking for something that is not easily duplicated.  You won't enhance the appeal of your property with a Suburban full of stuff.  

5.  New construction is always the most expensive way to go.  You are paying full $ticker price.  You are far better off finding something that someone needs to unload quickly.  They are out there.  

It is unreasonable to think that you will have positive cash flow if you are borrowing 80 percent.  That won't happen for a while.  You are buying in the Smokies for future price appreciation, and letting other people pay off most of the asset.  It will still probably be a terrific investment.  But this is a crockpot situation, not a microwave.