Long-Distance Short Term Rental in Pigeon Forge, TN

[Cody Z.]

Investment Info:

Single-family residence buy & hold investment in Pigeon Forge.

Purchase price: $408,000
Cash invested: $100,000

Short Term Rental purchased in Pigeon Forge, TN. Full Rehab 6 months into purchase using HELOC due to lack of performance. Good base hit but not a home run.

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

Was already finding success at the Jersey Shore in STR's and wanted to expand to a different market. Heard a lot of good things about the Smokies so went there.

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

Using a Short Term Shop Agent and typical on-market process.

How did you finance this deal?

Vacation Home Loan (10%) and Rehab through HELOC

How did you add value to the deal?

Rehab included repainting paneling, cabinets, new countertops, doors, hardware, fixtures, master bathroom, furtniture, etc.

What was the outcome?

Property is performing "okay" and is starting to cash flow but many factors are at play (high gas prices killed tourism, new listing so needed to build trust through reviews, learning market-specific nuances like min night stays, etc.)

Lessons learned? Challenges?

Make sure that you understand your market and be intentional about your investment. Don't take anything an Agent or other investors say at face value alone - do your own research and challenge what is said to you, always. Also, recognize that all investments are not home runs so keep your expectations and underwriting in line with that simple fact.

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

I would recommend Luke and Avery Carl's Short Term Shop Real Estate Agency. They are wonderful people and have built a great community.