2/2 STR Cabin in the Smokey Mtns

[Ryan Cushman]

Investment Info:

Single-family residence buy & hold investment in Sevierville.

Purchase price: $290,000
Cash invested: $40,000

Closed late March 2021 and went live on Airbnb/VRBO mid April and started cashflowing!! :)

7/28/22 Update

Since we launched in mid April 2021, this property has grossed $110K (through July 2022 - 15.5 months). Net of cleaning fees, it has grossed $93.7K. This amounts to about $6K per month. Less our OpEx (mortgage, taxes, insurance, utilities) and CapEx allocations, this property cashflows roughly $3,000 monthly.

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

Hunted for a couple years for the right RE investing strategy for me and this spoke to me the loudest. Avery Carl turned the light on for me!

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

I reached out to the Avery Carl Short Term Shop team and my realtor Jeana Maddux set up a search for me. I found this new build opportunity and got it under contract at asking price.

How did you finance this deal?

10% down conventional 2nd home loan. I got the down payment money by going to my 401K administrator Fidelity and taking out a loan against my 401K.

How did you add value to the deal?

Added hot tub, high end "cabiny" furniture, modern decoration, built a pergola and privacy wall on the back porch.

What was the outcome?

The outcome is that it seems like I struck gold with this property. Not only does it cash flow spectacularly, but property values have been insane since we got this under contract. We bought it for $290K in 2021 and probably could sell it for the mid $400's now.

Lessons learned? Challenges?

Working with new builds and builders has its own set of frustrations but was the way that worked for us. Builders overestimate their ability to hit the original close date by gigantic margins 100% of the time.. in my experience.. :) This one was 4 months off, my other one was 5 months off.

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

Yes! Jeana Maddux with The Short Term Shop.