new to bigger pockets, and have a question to sell or hold an STR

Nashville, Tennessee
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new to bigger pockets, and have a question to sell or hold an STR

Steffen Cushing
Lender · Franklin, TN · Member since 2022 · 33 posts · 8 votes

new to the bigger pockets community. I purchased my second short term rental in 2021 in the Gatlinburg area, initially when i purchased numbers looked great and property started renting out immediately and was consistent for all of 2021. 2022 i started to get overwhelmed with guest comments or complaints and ended up putting it with a property management company. Shorter version, I ended up getting frustrated so I listed the property for sale. Its been 4 months and no bites. My question would be for the group, would you suggest dropping the price and get rid of the property? use the profit and cash for a different investment strategy, Or my other thought would be to go in, rehab it, spruce it up and take over management again. Personally think if the property was fixed up and modernized, it would limit complaints and issues, but not sure. Any advise would be appreciated. 

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  • Mike Dymski
    Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
    3y

    Yes to both...best to be at or above competition in terms of finishes or sell to someone that will properly prepare the house.  If you post the link, the members here can help let you know what needs to be done.

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  • Ecaterina Katerina Morosan
    Real Estate Agent · Miami, FL · Member since 2022 · 238 posts · 102 votes
    3y

    Any real estate can be sold for the right price. If you had no offers in 4 months, the property is overpriced for the market. 
    If you decide to put more cash into it, make sure you don't overspend as sometimes the neighborhood's average price/condition/demographics doesn't look good for a brand new gutted property with marble floors and European light fixtures. Every neighborhood has a price ceiling when it comes to regular single family home. Honestly your next step depends on your options. If you have a better option where to put your money in after the sale, cash out. If not really, maybe you can refi, hold this house as a long term rental and buy your next property using the refi money plus the money you wanted to invest in the property modernization. 

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  • Matt Castle
    Realtor · Gatlinburg, TN · Member since 2018 · 261 posts · 155 votes
    3y

    Not trying to be a jerk with this comment, but the short answer is this: 

    4 months on the market and no offers, the market is telling you plenty, you just have to be willing to listen. 

    I work this market so I know how different it is from 2021 vs 2023, but good properties still go incredibly fast with multiple offers if/when the price is right. 

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    3y

    If it needs sprucing up, that's probably why it's not selling.

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
    WebsiteView Page
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  • Steffen Cushing
    OP
    Lender · Franklin, TN · Member since 2022 · 33 posts · 8 votes
    3y
    Quote from @Matt Castle:

    Not trying to be a jerk with this comment, but the short answer is this: 

    4 months on the market and no offers, the market is telling you plenty, you just have to be willing to listen. 

    I work this market so I know how different it is from 2021 vs 2023, but good properties still go incredibly fast with multiple offers if/when the price is right. 


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  • Steffen Cushing
    OP
    Lender · Franklin, TN · Member since 2022 · 33 posts · 8 votes
    3y

    Hi Matt, didnt take that negatively at all. I listed it with a realtor that told me the price to list it, unfortunately i have to follow up about whats going on. bought and sold a few properties and never had the disconnect of knowing whats going on.  i got a long way to go before i would even break even from the list price. part of me wants to keep (as my kids love the area) but the other part feels like dropping price to move on to a different asset. 

    i appreciate everyones comments. thank you

    1Reply
  • Harris Miller
    Real Estate Agent · Nashville · Member since 2022 · 14 posts · 5 votes
    3y
    Quote from @Steffen Cushing:

    new to the bigger pockets community. I purchased my second short term rental in 2021 in the Gatlinburg area, initially when i purchased numbers looked great and property started renting out immediately and was consistent for all of 2021. 2022 i started to get overwhelmed with guest comments or complaints and ended up putting it with a property management company. Shorter version, I ended up getting frustrated so I listed the property for sale. Its been 4 months and no bites. My question would be for the group, would you suggest dropping the price and get rid of the property? use the profit and cash for a different investment strategy, Or my other thought would be to go in, rehab it, spruce it up and take over management again. Personally think if the property was fixed up and modernized, it would limit complaints and issues, but not sure. Any advise would be appreciated. 


     Hey Steffen, if you are thinking about rehabbing the property I would also suggest going on your local mls (if you have access) and do some digging about how much other flippers spent on a square foot basis to determine the amount you should spend for your area. Also if you do take that route and do a little digging try and look for the properties that have closed recently because those properties should give the best guide for rehabbing your property and how much you should spend!

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  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Keep the property, hold for the long run and collect cash flow. Not a good time to sell  

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