First STR purchased in the Smokies

[Jonathan Stevens]

Investment Info:

Single-family residence buy & hold investment in Sevierville.

Purchase price: $420,000
Cash invested: $50,000

This is my very first purchase. I leveraged equity out of my primary residence from Massachusetts where I live to buy this property 1,000 miles away. Using this property as an STR in the Smoky Mountains of Tennessee. Currently working on furnishing and doing some updates while learning all about this market along the way. Excited to get this listed on all of the major sites. Also started an Instagram account to keep track of progress @hiddencreekTN .

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

I have always loved the Smoky Mountains and the short term rental market is huge in this area. I figured this could be the first property that I can use to leverage more deals in the future.

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

I found this on the MLS. In this hot market I had to make my offer more attractive so I offered $20k for an appraisal gap. Luckily the home appraised for more then my offer price.

How did you finance this deal?

10% down using a second vacation home loan

How did you add value to the deal?

Landscaping and updating the interior.

Lessons learned? Challenges?

Finding a contractor in this market is quite challenging. Finding a team you can trust to help analyze a property for you while you live so far away is key.

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

Yes, I worked with Tomara Kim from ExpRealty