Mountain cabin in north Georgia / North Carolina

[Brent Comstock]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $471,000
Cash invested: $95,000

Mountain cabin on the Tallulah River headwaters. 3BR/3BA on 4 acres

What made you interested in investing in this type of deal?

I was originally looking for a mountain cabin for my wife and me for personal use. A friend mentioned the potential for a STR and I started researching what it would take to have the cabin get to cash flow neutra (at least). The more I research I believe this property is unique (having 600 feet of Tallulah river frontage) and could do well as a STR.

How did you find this deal and how did you negotiate it?

Was looking at Zillow over the holidays, and saw this property away from everything else. It had not been well marketed, and we were lucky to notice it. Given the somewhat insane property value increases in the GA mountains over the last 18 months there was not much "negotiation" other than a small deduction from asking price for some repairs to the small pond on the property.

How did you finance this deal?

Cash out refi on our primary residence for down payment. Took out a 30-year second home loan with 20% down at 3.75%.

How did you add value to the deal?

The cabin needs some work, and I'm handy (sweat equity). I'm also comfortable with tech and think we'll be able to market this place for STR success.

What was the outcome?

We're just getting started; this is our first property. We close on Feb. 18, 2022.