Investment Info:
Single-family residence buy & hold investment in Pigeon Forge.
Purchase price: $375,000
Short term cabin rental in Pigeon Forge about two miles from Dollywood and 15 minute drive to Gatlinburg. Early on the demand for this property seems to be as good as projected.
What made you interested in investing in this type of deal?
Continued strategy of expanding vacation rental portfolio so that one day our family will have a collection of properties to vacation in that also provide significant cash flow for retirement.
How did you finance this deal?
This Tennessee property was paid for by our 2nd deal (vacation rental in Treasure Island, FL). Due to appreciation and a dip in interest rates we were able to acquire a 50k cash out refinance to support the down payment and lower our overall mortgage payment on the Florida property by $1,000 a year.
How did you add value to the deal?
Invested around 20k on this properties deferred maintenance areas. Damaged flooring, broken lighting, porch repairs, HVAC repairs, painting throughout.
Lessons learned? Challenges?
Remote repairs are possible. Important to find a quality contractor who is willing to take pictures, videos, etc. and commit to dates up-front.
That said, repairs always take longer than expected. Always pad your project plan for unexpected issues.
