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Updated 7 days ago, 12/09/2024

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Chris Primavera
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Considering first time STR investment in Gatlinburg area, looking for advice.

Chris Primavera
Posted

I am located in Ohio and like many people I have researched and read about, tired of the 9-5 grind and putting money into someone else's pockets.  I'm looking to create my own wealth and build something for my family.  To be honest starting out seems overwhelming and scary especially considering investing much of savings into a property that may or may not be successful. I have researched the different kinds of loans for this but I would love to speak with any lenders or other investors in this area.  I am also looking at the Gulf Shores AL market as well.  Right now I am stuck in the paralysis by analysis phase and am looking for any and all advice.

Thanks!

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Andrew Street
Pro Member
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Andrew Street
Pro Member
Replied

Hey Chris - It's awesome that you're taking steps toward building something for your family! Feeling overwhelmed is totally normal—it means you're taking this seriously. Connecting with local lenders or experienced investors can really help you get clarity. Maybe start with small meetups or forums in your area (or Gulf Shores) to learn from others' experiences.

Remember, every pro was once a beginner! Keep researching, but don’t let fear hold you back—small, intentional steps add up!

Happy to connect and share advice to help you move forward!

  • Andrew Street
  • User Stats

    210
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    198
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    Nick Velez
    Lender
    • Lender
    • Florida
    198
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    210
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    Nick Velez
    Lender
    • Lender
    • Florida
    Replied

    @Chris Primavera

    Nothing changes if nothing changes, that is one of my favorite sayings out there. Market research is very important but nothing is more valuable than just taking action. 

    No doubt buying the first property can seem very scary but ideally, you are working with a realtor and lender who owns STRs. If they can do it and be a resource for you, there is no reason you can't. 

    Unless you are looking at upper tier properties, you will likely be disappointed in Gatlinburg currently due to the over saturation in that market. There are a plethora of amazing STR markets that can yield great results. Your available cash will dictate what markets you should consider getting into. Feel free to message me, I would be glad to give you my opinions on where I think a good market would be based on your financial situation.

    • Nick Velez
    business profile image
    The One Brokerage - The Envy Group
    4.9 stars
    370 Reviews
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    Sleep easy, host confidently. Manage your STRs while you sleep with innovative AI technology and an abundance of automation tools.

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    I highly recommend contacting Ashley if you're considering investing in Gulf Shores.  Coincidently, she's also from Ohio.  https://thefemmeinvestor.com/

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    Chris Primavera
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    Chris Primavera
    Replied

    @Andrew Street Thanks Andrew, I just sent a invite to connect.  I would really like to learn more.

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    Chris Primavera
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    Chris Primavera
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    @Tyler Divin I actually have spoken to Ashley before.  She is a friend of a friend and I know she does a lot of work in that area.  Sounds like you have worked with her as well.

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    Chris Primavera
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    Chris Primavera
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    @Nick Velez thanks for the info and I have heard that the Gatlinburg area isn't necessarily a great market for your first investment because of the competition and amenities.  What markets would you suggest looking at?

    User Stats

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    Nick Velez
    Lender
    • Lender
    • Florida
    198
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    210
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    Nick Velez
    Lender
    • Lender
    • Florida
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    Quote from @Chris Primavera:

    @Nick Velez thanks for the info and I have heard that the Gatlinburg area isn't necessarily a great market for your first investment because of the competition and amenities.  What markets would you suggest looking at?

    It is really going to depend on your cash position and long term goals. Feel free to PM me and I can give you my thoughts. 
    • Nick Velez
    business profile image
    The One Brokerage - The Envy Group
    4.9 stars
    370 Reviews

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    Mike H.
    • Rental Property Investor
    • Manteno, IL
    2,111
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    2,210
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    Mike H.
    • Rental Property Investor
    • Manteno, IL
    Replied
    Quote from @Nick Velez:

    @Chris Primavera

    Nothing changes if nothing changes, that is one of my favorite sayings out there. Market research is very important but nothing is more valuable than just taking action. 

    No doubt buying the first property can seem very scary but ideally, you are working with a realtor and lender who owns STRs. If they can do it and be a resource for you, there is no reason you can't. 

    Unless you are looking at upper tier properties, you will likely be disappointed in Gatlinburg currently due to the over saturation in that market. There are a plethora of amazing STR markets that can yield great results. Your available cash will dictate what markets you should consider getting into. Feel free to message me, I would be glad to give you my opinions on where I think a good market would be based on your financial situation.


     I disagree completely with that suggestion.  its not the upper tier properties that are doing well. The problem properties are the larger ones. They're the ones that have taken the biggest hit.  The smaller properties are still growing in terms of prices and rents - which have both gone up actually since covid.  The larger properties (1,700 sq ft and above) are the ones that have seen the decreases in value and rents. 

    Part of that is during covid the rents went crazy. Occupancies which were 70% or so precovid were hitting 90% and higher.  Building for the larger cabins went through the roof. It was taking 8 weeks for septic permits and 4 months for surveys. 

    But when the interest rates started going up about the same time the fed start raising its rate, new construction came to a screeching halt. Right now, you can get a septic permit in a week.  A survey in a month or less.   There are no preconstruction listings for sale (they're used to be 20 at any given time). Spec cabins are few and far between. 

    So the oversupply is going to be sucked up and rents for even the bigger cabins are going to start going back to precovid occupancies again. And if construction doesn't start up soon and return to precovid growth, you're going to see a nice gap that helps drive occupancies even a little further up until it does. 

    But Yea. I would not buy a larger property right now unless you are doing it to try grab a nice equity bump in two or three years once the occupancy rates for that product return to precovid numbers. 

    If you stick with the smaller units 900 to 1200 sq ft cabins, you'll do just fine. And over the long run, that area is one of the best areas in the country for long term growth.  Its one of the few where the low periods are nowhere near as slow as others. Spring and summer are busy.  Fall season is nice.  And then you hit the christmas time. 

    User Stats

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    Mike H.
    • Rental Property Investor
    • Manteno, IL
    2,111
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    Mike H.
    • Rental Property Investor
    • Manteno, IL
    Replied
    Quote from @Chris Primavera:

    @Nick Velez thanks for the info and I have heard that the Gatlinburg area isn't necessarily a great market for your first investment because of the competition and amenities.  What markets would you suggest looking at?

    Every decent area for investing in str's has competition.  And right now the bigger cabins are not a good cash flow play but might be a great equity play when you look back in two to three years.  

    That being said, if you look at the smaller cabins (900 to 1,200 sq ft), I think the numbers are still very strong.  The boom in building was mostly for the larger cabins because of the crazy rents they were getting during covid (even a little before covid actually).  And what you've also seen is people that were renting 3 bedroom cabins are now deciding they can get by with the smaller one and two bedroom cabins.  And thats why those units are still seeing reasonable growth even after covid.  Less oversupply with that product type and more renters that were renting the more expensive bigger cabins are choosing the lesser ones because they love the area but don't want to spend as much on rent.

    We've talked with several long time investors out there and there isn't a one that have held on to their cabins over time that aren't still adding more.  And that is always a tell tale sign to me.  They've seen the peaks and valleys (08 crash and now post covid crash) and they've done unbelievably well investing there. 

    So I would definitely not write that area off.  Its far better than any other area i've looked into over the last two years.  Florida scares me with insurance issues and constant threat of hurricane damage. Other areas constantly threaten to curtail the ability to use homes for str whereas sevier county is based on the rental of cabins and they have zoning that can never be rescinded to guarantee it. 

    I'm not saying its the best are in the country.  But I haven't found one better and I've been trying for at least the past couple of years.  The key though is to find the right product type in any area you're considering as there are always good, better and best products in every market.  

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    Collin Hays
    Property Manager
    Pro Member
    • Property Manager
    • Gatlinburg, TN
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    Collin Hays
    Property Manager
    Pro Member
    • Property Manager
    • Gatlinburg, TN
    Replied

    I have been investing in the Gatlinburg area for 20 years. Happy to help you as you have specific questions. Obviously, I am bullish on the area long term.

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