In the Smokies, size matters

[Collin Hays]

I have watched, with interest, the rental activity of each cabin in our portfolio since 2019.  We have a number of properties that have remained pretty consistent in rental income throughout that time.  I will profile one of those today.  It's called Bare Hugs, and you can find it on our website if you want to have a look at it.  Bare Hugs was purchased in 2018 for $270,000. It is only 900 square feet - a one bedroom + loft, in Blackbear Falls Resort, and has a wonderful view.  Repairs and maintenance are probably $3,000 per year - not a lot of moving parts to this cabin.  

Here is the rental revenue, by year, for Bare Hugs:

2019  $31,712

2020  $39,028

2021  $46.322

2022  $51,412

2023  $53.364

2024  $50,817

The consistency of this small cabin is astounding. We have several others that are similar. Meanwhile, the giant cabins have seen some significant declines in the last 3 years. Perhaps a good ROI strategy in the Smokies is, keep things simple. You don't need a 3,000 square foot cabin to make money. Bare Hugs is a money machine, and looks to stay that way.