COVID CONCERNS FOR STRs?

[Luke J Nelsen]

Hey BP team,

As a newer STR investor in the Smokies, I wanted to reach out to some veterans in this space. I own 2 Smoky Mountain cabins and potentially looking to do a 1031 exchange to buy a third. Currently we have 4 duplexes as well. We like the stability LTRs offer to offset some of the STR risk.

We enjoy the increased cash flow from the short term rentals but there inherently more risk. Especially with the risk of another “shut down”.

I was hoping to hear your opinions on this topic to see what you think? Will travel be slowed down? Will domestic travel boom even more? Will rural destinations take a hit or continue to surge in demand?

Thanks,

LN

[John Underwood]

So during Covid last year we shut down for April and still had our best year ever.

I remember some people who have properties in the smokies that said the same thing.

I beleive this was the same nationwide for people that have true vacation rentals. The only exceptions might be places around theme parks like Disney that were shut down.