Short Term Rental Cabin in the Smoky Mountains, TN

[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!! :)

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

BP podcast #364 with Avery Carl. Listened to BP for a couple of years and couldn't figure out really how to get the ball rolling and this STR path screamed at me... DO THIS!!

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

Fount it on MLS as a new build. Offered asking price and the offer was accepted.

How did you finance this deal?

10% down 2nd home loan.

How did you add value to the deal?

Baked in 20K worth of a furniture allowance and furnished the STR with durable high-end rustic cabin furniture and my wife decorated it beautifully.

What was the outcome?

We were able to start cashflowing within a few weeks of going live on Airbnb/VRBO. I expect that it will gross $50-60K per year.

Lessons learned? Challenges?

I kind of knew this already but it closed 4 months later than original expected close date. I expected it to be delayed somewhat but not quite that much. I was so anxious to get in the game.. to hurry up and wait for months on end was definitely a challenge.

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

Avery Carl and The Short Term Shop team.