All Forum Posts by: Justin Beasley

@Owen Thornton Great questions, and good luck starting your search. 

* There is a lot that goes into the price you pay per bedroom. Currently in the Smokies the best value I have found is a 4 bedroom(or a 3 that sleeps like a 4) between $700,000 and $900,000. I am personally going to be looking in this range come January.

** Current occupancy rates are sky high! North of 90% in a lot of places. I would run numbers towards 80% occupancy. Prior to 2020 the average occupancy in Pigeon Forge and Gatlinburg was 70-75%. I do not think the PF/Gatlinburg area will go back below 80% occupancy as the area has gained so much momentum during COVID.

*** There hasn't been a low month in a long time! Traditionally, the starts of the school semesters bring a little slow down. This has not been the case for the past 2 years. 

**** Lived in Smokies my whole life, and the cities business development pages: https://pigeonforgedevelopment...

Also I do have a proforma that I created for STRs. Feel free to message me and I will send your way!

@Kyler J Sloan Putting in tongue & groove is possible and happens all of the time. It is pretty amazing how far 50-75K can go when it comes to changing a residential style property to look more like a cabin. I have had a couple of friends pull this off this year. Will be happy to send you some pictures of the before and after...just message me and let me know. 

Pretty much what everyone else said. Drained & cleaned after every stay. 

@Account Closed Yes, hot tubs are still a must. If possible to put in we are seeing a lot of swim spas going in as well.

@Jaron Walling #1 rated travel destination in the United States. Record breaking visitation numbers for several straight years. 3/3 cabins that consistently gross 100k+. Thousands of people who have made hundreds of thousands in equity, and cabins are still cash flowing.

It is definitely an expensive market, but not an overrated one.

@Mike Bellom Looks good! Thousands of Cabins in Pigeon Forge area. Make sure something about your property stands out.

If you can afford a 4+ bedroom then at minimum have a theater room and game room.

@Amit Kapoor - The first question is how do you plan on managing the property? If you plan on using a management company then the average ROI would be between 10-25%. In this market it is very difficult to get to 25% using a management company.

Self managing you should be between 25-35%. There are STR's getting above 35% this year but 2021 is not the norm. The average occupancy rate is north of 90% and that is not a sustainable rate. You would want to run your numbers looking more towards a 80% occupancy rate.

To answer your question on expenses...here is a list of things to consider on top of your mortgage, management fees, and taxes & insurance.

Electricity, gas, water & sewer, HOA fees, pest control, lawn care, pool/swim spa maintenance, TV & internet, credit card fees, gross receipt tax, and a monthly maintenance savings of 5%.

Hope this helps!

Requiring at least 1-2 months rent as a security deposit prior to move in is industry standard in our area. I am not sure that answers your question but hopefully it helps.

This is a great question @Diana T.. To answer the question...yes it is possible, but depending on a number of factors it can end up being rather difficult. 

Is your cabin in good condition and in need of little maintenance? Does the buyer desire to use the same management company or platform as you? Does the buyer believe your bookings are bringing in a fair number? If listed with a management company what is your management split? There are a lot of questions that have to be answered for the bookings to transfer.

The main question is what is it worth to you in order to honor those bookings? Are you willing to take a lesser offer in order make sure they are honored? Advertising that you must honor all bookings could result in some investors deciding to pass on your cabin or offer less.

I have heard of several cabin owners here in the Smokies that had to cancel $150,000+ in bookings. I would hate to have to make those calls, but that is part of it sometimes.

Going to be hard to find a friendlier place than Pigeon Forge/Gatlinburg. There are other similar areas in the south, but few will perform as well as PF/Gburg. For other mountain areas check out NC around Asheville/Bryson City, or the Blue Ridge Mountains in GA around Ellijah.

I would chime in but would sound very similar to what Jay said. So, good luck on the hunt!