All Forum Posts by: Aaron Akins

@Collin Hays You are always so kind to share your knowledge are real-world advice. I appreciate your response; much of which I hadn't pieced together into the complete puzzle that you presented it to be! I agree that there is a lot to digest in my question, but I appreciate you attempting to answer to the best of your ability. 

Hi All,

I've seen a few discussions related to this topic, but wanted to see if I can nail down a few specific questions. I'm planning to purchase an STR and need to ensure my numbers will work - even when the COVID hype slows.

Does anyone have any specific data that gives the average % increase in STR rates in the market I've mentioned above relative to the pre-COVID market? Specifically, on average, how much higher (%) are property owners charging for their rates on STRs in Gatlinburg/Pigeon Forge compared to 2019?

On a similar note, on average, how much higher (%) are the overall occupancy rates for Gatlinburg/Pigeon Forge today compared to 2019?

The reality is that if I buy a property in today's market, I should not depend on home appreciation to protect my investment; therefore, I need to ensure the rates I'm able to charge for STR rents will more than cover the mortgage.

For those who plan to buy in the next few months, or that have purchased within the past 12 months, how will you or how did you go about analyzing your STR properties to ensure the numbers will work even if rental rates and occupancy rates decrease?

I recognize that seeing the 2019 numbers on the actual property one is making an offer on is the best way to know historical rents for that given property, but I feel like there must be a bit more to the puzzle. 

Is anyone finding deals that make sense running conservative numbers along side the super high asking prices for these properties?  

Thanks in advance,

Aaron

@Chris Mason Thanks for your response. 

@Grant Schroeder I'd be looking for the OPTION of purchasing something in the 700s+. Thanks for your response and for your PM. 

Hello All,

I've seen a lot of back and forth searching previous posts on this topic, but I can't find a consistent answer.

Last week, I reached out to my lender about getting a loan on a STR in TN and she says she cannot provide a jumbo loan on a second home with only 10% down - that a product like this does not exist.

I've read that some folks on BP have been successful in getting this type of loan, but I cannot confirm this information. 

Is there anyone here on BP that can fill me in on the most recent and most accurate information pertaining to this question?

Thanks in advance,

Aaron 

@John Underwood Thanks for your advice John!

@Luke Carl the 20/40 really is a funny story and good for @Collin Hays for seeing the opportunity! As @Avery Carl points out in her book...one must see the bigger picture!

I'd love to know if you have any other specific advice when you find the time. 

@Avery Carl - My wife and I just finished your book and soaked up every bit of it. Your writing style is super clear and concise, but simultaneously entertaining. Thanks for sharing your wealth knowledge.

I was actually listening to it a second time through on my commute home today. I got home and my wife was listening to your book a second time through also. We do this out of habit when we find an awesome book.  

Avery, do you have any suggested starting CCCs for this market? 

Specifically, from a real estate agent's perspective, what information and realistic expectations/CCCs would you like for me to come to you with to best help me find an investment? 

@John Underwood the devils advocate in me would suggest stating that it's not so much about my own personal preference, but about what attracts the most renters. 

Personally, I'd love a 1 bedroom cabin with a wood burning stove 40 miles up a dirt road that has limited winter maintenance and zero phone/tv/internet services . Outhouse optional. I'd personally sacrifice a view for privacy/seclusion. But this likely wouldn't rent very well. 

So, if you were going to approach a realtor with specific numbers, location, and size - where would you start?

@Collin Hays, I really do love this property. So much character - I can see why this this cabin rents. Awesome job having on the rebuilt too.