Big Cashflow - Sevierville STR built in the 1900s

[Ruth Blue]

Investment Info:

Single-family residence buy & hold investment in Sevierville.

Purchase price: $220,000
Cash invested: $68,000

Contributors:
Rhonda Blue

This Newly Renovated Short Term Rental in Sevierville is a DIAMOND in the rough. Finding a well-priced 2/1 was difficult but possible! This Property required a few new updates to ensure maximum guest satisfaction, it was previously used as a typical, Single-Family residence. I am expecting to gross $55k+ in our first year listed with further potential income growth as I make changes. It is 100% possible to find great Rentals like this throughout EAST TN, you just need the right help.

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

I had Re-financed a different STR I own in Pigeon Forge & decided to roll that income into another successful deal in the area. This was an investment I took on with 2 other Investors so we can all bring our unique strengths to the project.

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

I had been researching on the MLS as well as Realtor/Zillow. This property had been listed for 2 MONTHS before I purchased it, it was quite shocking as this specific property was immaculate in person. It is in an up and coming area in Sevierville that some may have been weary of had they not known the many great qualities of this area. It is not what many Realtors or Investors are used to with our typical properties in resorts. This has a more typical AIRBNB feel in a normal area.

How did you finance this deal?

I had traditional Financing through a Lender I work with out of Alabama.

How did you add value to the deal?

I added Value with the small details guests appreciate upon arrival & with the Luxurious, Exterior Patio space. I am also Pet-Friendly which is HUGE in this area next to the Sevierville Dog-Park.

What was the outcome?

This has been a Successful Investment & if I were to sell after proving 1-year of Successful Rental history, I am positive it would appraise for more in this Tourist-focused area.

Lessons learned? Challenges?

I think the main challenge was determining how to create the Privacy fenced backyard to perfectly fit with this rental.

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

I was my own Realtor on this project - Blue Family Realty LLC
Ashley Langworthy was my Home Inspector - Bright Image Inspections