Short Term Rental Cabin in the Smoky Mountains, TN

[Ryan Cushman]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $545,000
Cash invested: $77,300

The "Knot Too Shabby Chalet" - 3/3 cabin in Pigeon Forge that has a small pool in the basement. My brother and I partner on this property. He brought the bulk of the upfront investment and I bring the setup and ongoing management. Through July 2022, we have grossed $117K. Our monthly operating costs are about $5K which includes paying cleaners and pool service personnel (our electric bill is over $500 every month.. (shock face emoji)). Our 1yr goal is for $130K ($100K net of cleaning fees).

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

I got interested in this type of deal originally from Avery Carl's BP podcast episode and after doing some investigating myself in how much potential there is in STR's in the Smoky Mountains, wanted to run as fast as I could there.

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

My realtor let me know of new build opportunities that were not marketed on the MLS.

How did you finance this deal?

10% down 2nd home loan in my partner's name

How did you add value to the deal?

We added some furniture and entertainment to the space. We also added a hot tub and changed out a lot of the decor to make it unique and stand out.

What was the outcome?

We have maintained a high level of occupancy and have been profitable every month since launch.

Lessons learned? Challenges?

Plan for 15 trips to Home Depot when preparing a short-term rental... :)

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes! The Short Term Shop team and specifically Jeana Maddux.