All Forum Posts by: Matt Castle

Rental income projections... if you're looking at long term rentals, best place is to search for comps are something like apartments dot com so you can see what rentals are available and the asking rent prices, or try to connect with a local PM company who can help you out. If it's short term rentals, then something like AirDNA or Enemy Method (google it) to find out estimate annual income. 

Greater Knoxville area has several lakes but the ones of interest for rentals might be: 1) Douglas Lake, 2) Norris Lake, 3) Cherokee Lake, 4) Watts Bar. Each have their own draws, like Douglas lake is closest to Smokies so might not be the best pick if you're looking for rest & relaxation in your retirement but has good income, versus Watts Bar that's more seasonal renters but lots of quiet spots for retirement. 

Big portion of Norris is already developed. I've seen decent numbers from the owners I've spoken with depending on their skill level and type of property they have. Lake front almost always takes pole position unless it's a killer property. 

Lots of visitors from MI / IN / OH come down from Spring Break to the late summer but it's a much more seasonal market geared towards summer season when compared to the Smokies. I'm sure there are plenty of weekend renters as well. 

Spring Break is over, kids go back to school, parents save & plan for summer vacations. 

Please don't think I'm trying to be negative or troll-y, but if any developer has an algorithm for this, I would wager that developer would be reluctant to publish such proprietary information on the web so they can have more competition.

The Knoxville market, and probably most/all of its sub-markets, have cooled substantially due to affordability and lots of other factors. And every major new development I've seen in Knoxville for the last 2 years seems to get public protest(s), negative publicity out the wazoo due to increased traffic flows and/or destroying the natural land and all that kind of stuff. Local banks are also beginning to get much tougher on commercial deals for various asset classes. 

Not saying it's impossible, but Knoxville area 2023 isn't Knoxville area 2021. 

Best paths could be: 

1) start top down and meet with the governing municipality. Maybe they would welcome another development if your sub-market really needs more housing and be a help versus hindrance. You'll be dealing with them anyway, so maybe a sit down is a good place to start. But you're wanting to subdivide for more space to build 500k+ homes, you might not get the best responses. 

2) start bottom up driving around a new subdivision to see what the local gov made them do, then go talk with soil scientists, excavators and the companies that put in the basic infrastructure to get multiple quotes.

I might be wrong, but I don't see an easy button for such a detailed project. 

CHATTANOOGA... 

"The moratorium in effect on all new non-owner occupied short-term rental applications through January 09, 2023 was extended through July 10, 2023. NO NEW NON-OWNER OCCUPIED SHORT-TERM VACATION RENTAL APPLICATIONS ARE BEING ACCEPTED." 

Source: https://chattanooga.gov/public...

Cabin dependent decision or cost benefit analysis decision... 

Downtown Gat where power is usually first to be restored and it has city water/sewer, probably not. 

Isolated areas off the beaten path where there are lots of trees to knock down power lines, yeah, maybe. 

Just depends if you want to be the one in five hundred cabins that has power during the power outage. 

Gotta do your own leg work. Anyone who finds a deal like this will keep it themselves. 

To me, that's a hold. I work with investors all day long and no way I'd suggest selling the property unless you had life-changing circumstances, your goals had changed from buy & hold investor to flipping, distressed situations, burned out landlord, etc. 

The more important question to ask... what happens after the sale? 

1) tax implications? 

2) what can you possibly find that has a better ROI than this?

If you must, refi this unicorn that's minting money for you then rinse & repeat. 

Maybe find a local appliance store that's more "Mom & Pop" versus big box store. We have 2-3 of those in the Smokies and I'd wager they would talk discounts when 48 units are on negotiating table. Try to find one of those stores that have been in the family for a few decades and give service warranties. 

Farragut is a difficult area for house hacking if you're looking for lower than average entry points. Even the run down and wildlife moved in type homes are six figures.

Maryville is a great spot but also hard to find good starter material but probably likely easier than Farragut. Most of the greater Knoxville area is like this due to a hot eastern TN market. 

When something pops up you like, be ready to move fast.