All Forum Posts by: John Carbone

Im under contract for a STR and just got the loan estimate back. It was not what I was expecting. I was expecting to put 20% down and have an interest rate of about ~8%. Due to the appraisal of the house and the DCR being negative, my loan estimate is now 25% down and an interest rate of 10.5%!! My initial investment will be around 30k more than I calculated for.

I am using some cash and a HELOC to finance the purchase of this property. My worry is if the house doesn't perform like its supposed to. What would you guys do?

I estimate the house would gross ~60k. Heres the numbers on the house.

purchase price - 380k
loan amount - 285k

Interest rate - 10.5%
estimated expenses - 3.6k

Estimated monthly gross - 5k

Easy pass

1 Vote

Quote from @Leslie Anne Morris:

Quote from @John Carbone:

Quote from @Leslie Anne Morris:

Quote from @John Carbone:

Quote from @Leslie Anne Morris:

Mountain View’s first and foremost. Then if it’s new and fancy versus rustic and older of course the new ones will perform better.

In my opinion, a cabin on an actual rushing creek (not a trickling one) is above the Mountain View. Those properties are extremely rare to find though and the premium paid now may not be worth it.

And flood zone. I have 2

Do you have a link to book them? My family visits and enjoys staying in true creekfront properties and difficult to find.

Sure joshscabins.com. Mine aren’t true Creek front but close enough to be in the flood zone. One is the Dolly house that my team just did that was shared on Biggerpockets social media a few times.

Insurance isn’t too much in flood zones. I have one waterfront and I think it’s around $500. I paid $500 a square foot last year and my cash on cash the last 12 months is 37 percent. I’d love to get more of these but they are difficult to find on market.

are you advising clients to sell their properties in this market?

0 Votes

Knoxville, Tennessee

Quote from @Leslie Anne Morris:

Quote from @John Carbone:

Quote from @Leslie Anne Morris:

Mountain View’s first and foremost. Then if it’s new and fancy versus rustic and older of course the new ones will perform better.

In my opinion, a cabin on an actual rushing creek (not a trickling one) is above the Mountain View. Those properties are extremely rare to find though and the premium paid now may not be worth it.

And flood zone. I have 2

Do you have a link to book them? My family visits and enjoys staying in true creekfront properties and difficult to find.

0 Votes

Knoxville, Tennessee

Quote from @Leslie Anne Morris:

Mountain View’s first and foremost. Then if it’s new and fancy versus rustic and older of course the new ones will perform better.

In my opinion, a cabin on an actual rushing creek (not a trickling one) is above the Mountain View. Those properties are extremely rare to find though and the premium paid now may not be worth it.

0 Votes

Knoxville, Tennessee

Quote from @John Crimmins:

Just curious if anyone has experience managing or owning a modern-style or modern-themed cabin in Pigeon Forge / Gatlinburg. Thinking about building. Would love referrals to builders that specialize in this if anyone knows one!

Yes they do appear to be, however you will pay a large premium in the purchase price.

0 Votes

Knoxville, Tennessee

Quote from @John Crimmins:

Quote from @John Carbone:

Quote from @Mark S.:

@Collin H. Same here. Premium cabin priced right is doing well, look-alike but very well appointed and private is down about 20%.

A lot of people have been mislead and have been convinced there is great wealth in STRs. There was - up to a couple years ago.

And the RV’s, yurts, and tents are down about 99 percent

Is this true? Anyone own these or tiny-homes and experience any declines?

Look at the post from 8 hours ago.

0 Votes

It’s a strange market. Bookings are coming in last minute a lot. Just last year I was booking all of my rentals over a month in advance. I’ve lowered pricing 10-20 percent for stays 30 days or sooner and they book out (so far.) are they booking because price is lower or is it just a new dynamic. That’s the question. As a result, averaging my pricing after 30 days and <30 days I’m getting more revenue because my occupancy is going up compared to last year. Not sure what to make of it, and the market does seem rather fragile but we will see.

3 Votes

Quote from @John Underwood:

Quote from @Collin Hays:

Quote from @John Underwood:

Quote from @Collin Hays:

Quote from @Kyle Wise:

@Travis Andres You'll see a bunch of STR gurus on here and social media tell you the market is doing better than ever before but remember they benefit from telling people that because they have something to sell you.

I need a guru. Can you point me in the right direction?

I need a Guru too, not a self professed one though.

I’ll be your guru John.

sweet!

Wait did you just self profess yourself to be a Guru?

@Collin Hays anxiously awaiting your first YouTube video and live stream. You first need a “catchy” nickname, and you should study the “airbnb” buzzwords.

1 Vote

Quote from @Kyle Smith:

Hello everyone…. I have a nice gas grill on my upper deck but my last guest nearly caught the deck on fire. The upper handrail was burnt and scorched pretty bad. I’m thinking I need to get the grill off my deck.

Do any of you have a suggestion for a permanently mounted charcoal grill? I was think of putting a permanent one in around my parking area or move my gas grill down to the parking area. Your thoughts?

Yup, I’m adding these

https://kaypark.com/product/sb16-pedestal-park-grill-quick-s...

here’s one on sale

https://www.northerntool.com/products/pilot-rock-heavy-duty-...

2 Votes

Quote from @Collin Hays:

Quote from @John Carbone:

Quote from @Mark S.:

@Collin H. Same here. Premium cabin priced right is doing well, look-alike but very well appointed and private is down about 20%.

A lot of people have been mislead and have been convinced there is great wealth in STRs. There was - up to a couple years ago.

And the RV’s, yurts, and tents are down about 99 percent

Yurts ?

They are upgraded tents with heating and air inside.

2 Votes

All Forum Posts by: John Carbone

John Carbone has started 38 posts and replied 1079 times.

Post: What would you do?

Post: Do Modern Cabins Outperform in Pigeon Forge / Gatlinburg?

Post: Do Modern Cabins Outperform in Pigeon Forge / Gatlinburg?

Post: Do Modern Cabins Outperform in Pigeon Forge / Gatlinburg?

Post: Do Modern Cabins Outperform in Pigeon Forge / Gatlinburg?

Post: Anyone seeing drastic drop in STR Bookings?

Post: Anyone seeing drastic drop in STR Bookings?

Post: Anyone seeing drastic drop in STR Bookings?

Post: Grill for STR in Gatlinburg

Post: Anyone seeing drastic drop in STR Bookings?