All Forum Posts by: Darren Greenwalt

Thanks to everyone for providing your insight and suggestions, I really do appreciate it. We are taking a step back on this property for the moment because the numbers just do not appear to work, especially with the needed features that would need to be added to get it up to its full potential.

Hello! My wife and I have been interested in getting into STR's in the Gatlinburg, TN area for some time (we have several LTR's in KY). While looking at options, we came across a high-end property that appears to be selling for good price that might work as a STR. Does anyone have experience in these type of properties?? The purchase price will be in the $950K area. It is currently a 4BD and comes fully furnished. Upon finishing out the basement, it would be approx 6,000 sq ft. (its currently about 4K with an unfinished basement) and have an indoor pool, sauna, gym, and theatre (and we are planning on adding a 5th bedroom possibly). This was a 2nd home and has never been used as a STR. It is not one of the massive 15 or 20 bedroom rentals, but it is a VERY nice, high-end furnished home with a spectacular view.

Our broker estimates gross rental of 170K per year (and upwards of over 200K once the additions are completed). I'm currently trying to locate comparable to try to find approx VRBO rents (this is how we intend to manage the property) to see if this is actually in the ballpark. Does anyone have any suggestions on how to determine a 'best guess' on approximate STR gross income? Do those out there that have significant experience in this area believe that a High-End STR like this is a viable business option? Thanks!!

Welcome Shane! I'm from Lexington also and have a few properties there and in Bowling Green. Let me know if there is anything I can do to help you out! Good Luck!

Im currently living in a home that was originally one of my rentals. It is at the end of a cul de sac and my wife and I have decided we want to 'own' the entire street over time. Just a few months ago one of our neighbors house came up for sale and we bought it...as a matter of fact the renters are moving into it today...another house (two doors down from us in the other direction) just came up for sale for a good price so we are working on getting $$ together to buy it as well. We know that at least 2 more houses on our cul de sac are coming up for sale in the next year and a half. If we can get those as well we will own almost 75% of the street and be the "King and Queen" of the neighborhod! lol.

Acutally, we will probably be moving out of there here soon (and turning our house back into a rental again) but by owning most of the houses on the street it will help us keep a 'standard' for the street and help keep everything looking nice. Also, we have realized that everytime we get a 'good deal' on one of the houses on the street (below PVA and market value) it helps on the next purchase on the street because it is a lower comp to compare to and justify the lower offer/purchase price. I'll keep you posted on any problems we have in renting to a neighbor. Good luck!

Communication is the key....I learned the hard way. When I purchased my first rental property I was living/working overseas and turned it over to a rental company (Lexington, KY). I received very little correspondence from the management company and at the time I did not know enough to keep on top of it from my end. I assumed that as long as I received my checks each month that things were going fine....I was wrong. After several years I returned to look at the property and the company had failed to do ANY instpections on the home as they stated they would. The house had fallen apart and become the eyesore of the neighborhood....bad roof...rotted windows...weeds knee high in the front yard. The renters in the home advised that they had not laid eyes on the management company in over three and a half years when they did the initial walkthru and rented the home. Not only had the management company failed to make quarterly inspections of the property that they were supposed to, but they also ignored tenent requests to make repairs to the house.

I must take some of the blame on this since I failed to follow up and inspect the home myself from time to time. I learned a lot of lessons from this....you need to really screen the management company to ensure that they abide by the terms of their contract with you and that they are professional.