Sevierville/Gatlinburg investment - ideas?

[Gururaj Iyer]

Hello , i am thinking of investing in the sevierville gatlin burg area and was hoping if someone can share some tips & suggestions ? for Short term rentals specifically?  i know its a high demand and supply area but residing in NJ and investing in a longer distance property with good Airbnb Cap rates is what i am hoping for.. 

[Chuck Kramer]

Area is growing rapidly and lots of opportunities still exist. Worst case, you returns drop from 20% down to 12-13%. Still the best you'll find. Yes, lots of cabins and more going up everyday, but tourism is growing at about 8% YOY putting the numbers up to about 19M visitors a year to the area. The NPS estimates 12M visit the park itself.

BIG money is coming into town as well with several very large resorts planned, huge new waterpark in Sevierville, new attractions area, and new roads and improved access will help spread the people out farther in Wears Valley, Townsend, and Cosby.

Research. Being in city limits of any of the 3 towns has pros and cons -- know and understand them. Most cons are increased costs/taxes. City of Gatlinburg is currently the only one requiring permits and inspections, but Pigeon Forge will likely move that way in the next year or two (inside source).

Be familiar with nuances of having a well and/or septic as opposed to utility water/sewer.

Be ready for a big electric utility deposit. Insurance costs are up since the 2016 wildfires, but also know that property taxes are pretty low.

Try to get into an area that is within 15 minutes of attractions (Gatlinburg, Pigeon Forge, Dollywood, Cades Cove, etc). 

Try to avoid steep driveways and steep access roads as they will limit some of your winter rentals. Heck, even 75-degree fall days can be hard if drive is steep, its raining, and wet leaves are everywhere.

And above all...contact @Avery Carl. She's a good realtor and, unlike many locals, she owns and operates several properties. Her husband @Luke Carl can help educate you on remote management.