Startup costs for STR cabin in Gatlinburg

[James Rowe]

I'm working on my expenses spreadsheet for purchasing my first STR cabin near Gatlinburg. I currently have:

1. $175 Smart lock keypad for remote management of door lock on Amazon

2. Furnishings that may not already be present

3. Utilities start-up fees

4. Initial cleaning fee if needed (may do it myself if possible)

5. Initial maintenance costs to get the place ready to rent (if not ready to go already)

6. Listing/marketing upfront fees (not sure if there are any)?

I don’t know what I don’t know here so please feel free to help me out or tell me if I’m way off track. How much are you guys seeing these things cost? What would you plan for?

[Luke Carl]

Well. I'm a guy that does not like spread sheets. They just don't work for me. My brain says "does it make money? Yes? Buy it.No? Don't buy it" But I've got several in your market so I'll do my best to answer your questions! 

Originally posted by @James Rowe:

I'm working on my expenses spreadsheet for purchasing my first STR cabin near Gatlinburg. I currently have:

1. $175 Smart lock keypad for remote management of door lock on Amazon

Could be anywhere from $100 to 300 

2. Furnishings that may not already be present

I've spent anywhere from $0 to $8000 depends on YOU, how much Chip and Joanna you watch, and depends on the property. 

3. Utilities start-up fees

Sevier County Electric will charge you a deposit. It will be 2x the highest electric bill in the past two years. The water will come from a well in the ground. That well could cost you $0 or you may need to replace expensive filters the day after you close. No way to tell. 

4. Initial cleaning fee if needed (may do it myself if possible)

Could be $0 Could be $2500 could be 10k. Depends on what sheets you buy and which cleaner you choose. If you plan to clean this thing yourself you'll never make it. Do you want to be a real estate investor or do you want to be a housekeeper? "Hire fast Fire faster"     Although I assume you mean how much to clean the property the first time? That's not enough to worry about. Maybe $300-400 to clean an empty house. 

5. Initial maintenance costs to get the place ready to rent (if not ready to go already)

There is literally NO way to predict this. 

6. Listing/marketing upfront fees (not sure if there are any)?

Airbnb/VRBO do your marketing for you. 

I don’t know what I don’t know here so please feel free to help me out or tell me if I’m way off track. How much are you guys seeing these things cost? What would you plan for?

As with any home you buy, it's nearly impossible to predict what will break and or when. My advice would be to assess your risk level (I personally love risk. Oh everything terrible can happen in one day? Bring it on). 

Figure you've got the following functions of the house (assuming you've never bought a house before) decide which functions of the house you're worried about breaking and how soon and accommodate for such things. Figure this house is 2-5 bedrooms and in sevier county and is functioning as a short term rental, as is everything in sevier county. 

Roof: 7-8k
HVAC: 4-5k
Well Filters: $0 -3k
Stain: 4-5k
Furniture (Entire house): 8-10k
Appliances (stove/fridge/dishwasher): 3K

I think I've covered all the big ones. 

My business model has NEVER been to worry about such issues. I've always tried to focus every dollar on the next purchase. I now have 24 doors and a freight train of momentum. I've got two new roofs going as we speak. As well as 3 full rehabs. And the 24 door funnel plays for all of these roofs and rehabs and the ball just keeps on rolling into one giant snowman. Life is good. 

One day I'll be Paul Sandhu when I grow up.