Single family homes/ vacation homes

[Ben Thompson]

I have a question on the occupancy rate in Gatlinburg we are looking to purchase a vacation home this year but would like to be in an area we would like to visit but also create a good revenue stream. With the increase in home values is this still a market for a small investor? Thanks! 

[Joshua Rowland]

Quote from @Ben Thompson:

I have a question on the occupancy rate in Gatlinburg we are looking to purchase a vacation home this year but would like to be in an area we would like to visit but also create a good revenue stream. With the increase in home values is this still a market for a small investor? Thanks! 

 Sweat equity deals, or new construction are alternatives to make you cashflow better in Sevierville. As long as your cabin checks all the marketable boxes you’ll still cashflow decently (cabin-style, hot tub, close to DT, view). I have started to see people go out of pocket in the beginning months though, but you’ll makeup for it in the later months. Regardless, I believe you’re suppose to calculate airbnb annually and not monthly. So you’ll still come out on top if even if you have bad months in the beginning of the year. 

 Here’s a 2020 spreadsheet of occupancy.  The numbers may be skewed bc of the pandemic, so some may recommend to look for 2018-2019 data.  

Here’s a bit more info

[Justin Beasley]

Small investor is a relative term:) You can purchase STR's in Sevierville, PF, and Gatlinburg for anywhere between 300K and 2 Mil+.

If you are wondering if your property will cash flow with having to pay the current prices...that will depend on a number of factors; the property itself, how many owners days you will spend in it, how you do as a manager, etc...

It is certainly possible to purchase a property at the current rates, stay in that property 3-4 times a year and still make some money.