Profit With A Mortgage on Vacation Rentals? Blue Ridge, GA

[Paul Kupfer]

Hello BP Gurus!

I'm Paul and new to Bigger Pockets.  I am a car college (podcast) real estate wily veteran - but a real-life novice with one college property in Athens @ UGA.  I am interested in investing in the Blue Ridge, GA area as a growing escape from bustling (and also growing) Atlanta with future appreciation and vacation rental potential.  

I'd like to know if anyone here has any experience renting an investment property in Blue Ridge with a mortgage.  If so, I'd love to pick your brain on expectations, lending, rental operating expenses, and potential pitfalls.  I'd be happy to chat on BP or buy a coffee/lunch for your time!  

Thanks in advance!  I'm looking forward to interacting on BP - I've heard tons of good things on various real estate podcasts I listen to!

Regards,

Paul K

[Paul Kupfer]

Pat,

We just bought in March, but our experience so far has been positive.  We bought near the top of our range after literally years of looking in the bottom of our range.  When I say our "range", it's more about what we thought could be cashflow neutral (top end) to cashflow positive (bottom end).  As the time went by, our preferred cabin checklist kept appreciating in price, so that also pushed our range higher.  All that said, we expect to be approximately cashflow neutral until we get enough ratings and improve our SEO on the rental sites.  I am forecasting 10% returns if we can land in our desired revenue target.  I don't see a scenario where it doesn't at least break even from a cashflow perspective (i.e. before tax advantages).

The market is interesting there - lots of aging homes and lots of new construction.  All different price points.  Depends on what your "checklist" is for your family and as a rental unit.  We had the following "checklist" and hit them all:  long-range views, 3 bedrooms, no loft, game area, paved access, near downtown blue ridge, secluded/private feel, and a hot tub.  These items are all priced into the market and you can add or subtract to come up with your own.  I would definitely suggest making a day of exploring and seeing homes.   I can recommend a realtor if you need one - mine was great and went the distance with us finally getting a purchase after several years looking!  We'd also be glad to host you in our Airbnb while you're up seeing the sights! (subtle enough plug? haha)

I hope this helps - I'd be glad to provide any other info if helpful!

Take care,

Paul