STR in Pigeon Forge / Sherwood Forest HOA

[Mark Cermak]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $569,000
Cash invested: $80,000

Short term rental cabin in the Smokey Mountains generating in excess of $90k/year in gross income.

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

The high cash flow is what was appealing for this specific deal.

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

I connected with the Short Term Shop (Lucas/Avery Carl and Julie McCoy) and they guided me through the process of getting it up and running.

How did you finance this deal?

Traditional 30-year mortgage (2nd Residence)

How did you add value to the deal?

I made about $12k in improvements upon purchase by fixing up various things around the cabin, including all new TV's in every room, a new theater room set-up, etc.

What was the outcome?

Cash flow is currently trending higher than predicted.

Lessons learned? Challenges?

I've had just about every problem you can imagine with this property, from squirrels in the roof to replacing the oven. There's not a single thing in the cabin I haven't touched at this point from a maintenance perspective. Despite the headaches, it continues to produce cash.

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

Yes - Lucas/Avery Carl and Julie McCoy at the Short Term Shop