"My Smokies cabin isn't doing as well this year!"

I have received phone calls from several folks in the last couple of weeks that are in panic mode because 2022 numbers are not matching 2021's.  I have a few thoughts on this:

1.  2021 was a unicorn year.  Undersupply, pent-up demand, and cheap gas.  That led to remarkable, and simultaneously unsustainable, yields.  It was the perfect storm for owning a Smokies cabin.

2.  2022 is off some, but it is still trending to be quite a good year.  Yet if you purchased a cabin with a price based on a multiple of 2021 earnings, your stomach doesn't feel so good right now.

3.  Everyone was an expert manager in 2021. Just like everyone is Warren Buffett when the stock market is euphorically rising.  The truth is, undersupply and pent-up demand covered a lot of poor-management sins.  If the management of your property is in the "iffy" category, your numbers are starting to show it.  I talked to a gentlemen over the weekend who is off 30 percent in June, and July doesn't look much better.  There's no reason to be off that much, unless someone isn't at the steering wheel.

As the Smokies market begins returning to more normal levels, owners will need to get their hands dirty to squeeze out good yields.  Commit yourself to doing this - your investment is on the line.

Until next time...happy investing.

Collin