Smokey Mountain STR Cabin

[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!! :)

Since we launched in mid-April 2021, this property has grossed about $72K per year or about $6K per month. Net of cleaning fees, it grosses on average $4800 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?

Math.. :) I count myself extremely fortunate I got in the market before the massive uptick in home values. The projected income and the cost to buy were really good-looking and turned out to be better than expected.

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

I had my realtor set up a search. I used the search portal to check listings frequently. I found a listing for a new build cabin and offered the listing price for it. The market was heating up so I did not try to push on the price. I did bump the contract price up by $20K and for there to be a credit issued to Smokey's Furniture which covered some high end furniture, and a hot tub.

How did you finance this deal?

Conventional 10% down 2nd home loan and the deposit came from a 401K loan.

How did you add value to the deal?

We added value by furnishing the property, adding a privacy wall and pergola over the hot tub, string lights, updating/upgrading light fixtures and plumbing hardware. In 2024, we are upgrading the outdoor space to include a putting green, a nice firepit situation, a playset, and expanding the deck.

What was the outcome?

It has been a wildly successful investment for us. It is worth probably $200K more than we paid for it and has given me a nice pay raise the last 3 years.