Smoky Mountain STR (3rd investment, 1st STR)

[Chris Allen]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $573,000
Cash invested: $65,000

Purchased a 2:2 with a loft cabin in Sevierville,TN. Purchased with a 10% down loan and rented out as an STR. 2021 Gross income was $97k where I was able to Net about $35k from March 2021- December 2021.

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

Always wanted to own a property in TN, and after hearing Avery Carl's podcast I decided to pull the trigger.

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

This property came back available on the MLS after going pending for $589k. When the property came back available, my agent was able to find out that there was one other offer for $589k, but the buyers had lots of contingencies. We came in with a $590k offer and waived inspection (had the inspection report from when it first went pending). While under contract, appraisal came in at $573k and since the sellers were doing a 1031, we were able to negotiate to purchase at appraised value.

How did you finance this deal?

10% down conventional

How did you add value to the deal?

A few new furnishings, good pictures, and a good AirBNB/VRBO listing.

What was the outcome?

Rented out on AirBNB/VRBO with a 2021 Gross Revenue of $97k.

Lessons learned? Challenges?

STR's can be time consuming if you don't have the right process in place.