All Forum Posts by: John Carbone

While true, smoking is down significantly over the past 20 years (maybe as much as 50 percent) and real estate allows you to get 5-8x leverage without a margin call. Not to mention the tax benefits of real estate. That’s in general though, I’d be passing on this specific deal. 

If you are renting for $100-$150 a night I would charge to send, but if someone just spent over a $1000 to stay at your place, pay the $10 to send it back if it’s a valuable item. Asking for $10 in this situation just seems too nickel and dining.

At the end of the day, the Gatlinburg area does not have very good hotels, even the decent ones are mostly dated and regularly go for $200 a night. These are all pretty much booked up too. Contrary to the belief of people on here, millions of people travel and stay in hotels for vacations - even in the smokies. 

as Colin mentioned, someone is killing it because they most likely modernized it and filled it with top amenities which local hotels do not have, and they are able to be priced lower than the hotels and still crush it. That being said, the high hoa fees will suppress your future real estate value (I’ve seen some as high as almost 1k a month in the area), just run the numbers though. In this environment, I think the boat has sailed for these opportunities in the area. 

 They told me they couldn’t do it for me because no fire hydrant within a certain amount of feet.  I assume that’s common in the smokies. 

this happens a lot in the smoky mountains. Areas are zoned for no overnight rentals and they trade at a significant discount, sometimes 50 percent less than the same house a block over that has zoning for STR. this is done through local municipality placing restrictions for residents to have a place to live, but the same concept is being applied here, just in this situation its a property owner that is placing the restriction.

So depending on the location of the property and the situation, it’s possible the 100k is worth it. I know there are gatlinburg/sevier county properties zoned no overnight rental that I would gladly pay 100k extra at current non str pricing…it would still be a steal. 

just don’t buy it. It is legal to do though from his POV. We live in a free market. 

Not sure why there is so much negativity towards this person. If it’s a 30 percent cash on cash at “residential” pricing it’s his choice what he wants to do. Maybe he has a neighboring property that he is short term renting and he doesn’t want the competition, but he will for a price. Most everyone here makes a lot of money renting their houses out for big profits. Let’s not chastise the person selling their house with those terms and conditions. It’s unorthodox what they are doing, and I wouldn’t pay it, but it’s free market capitalism.  

I wouldn’t pay it, but I think the seller can legally enforce it. He owns the property so theoretically he could add anything he wants to a deed restriction. I wouldn’t buy it with the restriction and then try to rent it out. He surely will be checking if you Airbnb it afterwards and would likely try to enforce the deed restrictions.