All Forum Posts by: Kyle Smith

I have a spreadsheet I've developed for my STR and have been using 20-28% for a management company to manage the cleaning, booking, and maintenance. However, after doing some reading here I am leaning on doing the booking myself through VRBO and managing it myself. I'm building a 3br pool cabin, so I know there will be an added expense for the pool, but I'm curious if there is an average percentage number I could plug into my spreadsheet to represent the cleaning, maintenance, etc. if I manage it myself? Is it 5%, 10%, etc of my gross income for the year if I manage it myself? I would love to know about your experience. Thanks in advance.

I'm about to build a 3 bedroom pool cabin in Wears Valley/PF area and I noticed most of the new cabins have pools.  Are most pool cabins being built fiberglass, vinyl liner, or gunite pools?  I want to go with the best bang for the buck and durable.  Also, I was curious how they are supported underneath.  My cabin will be on a pretty steep grade and will likely have 3-4 levels before I get to my basement level.  Thanks in advance.

I am about to build a new pool cabin in Pigeon Forge and I'm a little torn on which design to go with in the interior.  I know the cabin should have a lodge feel at minimum, however I'm not sure if a hybrid look with both sheetrock and tongue & groove wood would be better than 100% "wood out" tongue & groove pine look.  Nearly every cabin I see has the 100% T&G.  I'd like to go with the option that would get the best rental numbers in today's market.  Thanks in advance for your comments.

In this current market sellers are listing many properties above what they would appraise for. I’ve seen lots at an asking price of $300k but the market will only bear $150k for it. The seller is hoping someone comes along that has more money than sense and buys it. Also, I find many realtors aren’t spending 2-3hrs a day charting and studying market trends in a particular area like I do. Often times the buyer knows more about the market than the realtor. So, heck yeah... I submit low ball offers when it’s justified. I haven’t won one yet but I’ll keep trying when appropriate.

@Bryan Young

In the right location with great mountain views a large cabin will do amazing especially with an indoor pool. You might have a tough time making the difference back for a cabin without views or a pool.

I think the sprinkler system adds about 25k to the cost of the home. 

Please accept my apologies regarding the vacation loans comment.  I’m buying my first as well in the PF/Gatlinburg area. Had some bad loan experiences with loan brokers and underwriters finding out the loan was for rentals. I know it’s pushed a lot on the podcasts here and on the forums to utilize those vacation loans for rentals.  Anyway, it’s off topic.   This area is a rental boom and you are doing very well. I missed out on all of the reasonable deals by analysis paralysis. The key in this market is be aggressive and just get it done. Be smart but just go for it.  Congrats on your cabin!

That same cabin will run you in the 400-550k range now. Also, there is a huge misconception out there about mortgage fraud and using vacation homes for STR. If someone is renting it out the vast majority of the year it has to be an investment loan and the banks are going to start going after people for this. Ive talked to several bankers to confirm.

I was just making the point a 2 bedroom at 550k is crazy comparing the 2018/2019 returns.   It’s hard to make the numbers work in your favor if someone is financing. Also, appraisals are not coming back favorably. Houses are moving from pending back to active because of financing. 

If you are paying with cash you’re golden. I should have mentioned I’m coming from a financing 85% investment loan perspective.