All Forum Posts by: Ruth Blue

I Recommend checking out Bersch & Sons construction + landscaping! They have done great work rebuilding decks for me at 3 cabins. +1 865-661-6062

I use Fast Fedy LLC for cabing staining as well +17038615927

I personally invest in the Smoky mountains as well as own 2 of my own STR's. It is of utmost importance to have honesty with the home inspector & contractor referrals you recieve as well during the purchasing process. I can share some local referrals if you would like! Best of luck on your search, there are absolutely good gems you can find.

Investment Info:

Single-family residence buy & hold investment in Sevierville.

Purchase price: $220,000
Cash invested: $68,000

Contributors:
Rhonda Blue

This Newly Renovated Short Term Rental in Sevierville is a DIAMOND in the rough. Finding a well-priced 2/1 was difficult but possible! This Property required a few new updates to ensure maximum guest satisfaction, it was previously used as a typical, Single-Family residence. I am expecting to gross $55k+ in our first year listed with further potential income growth as I make changes. It is 100% possible to find great Rentals like this throughout EAST TN, you just need the right help.

What made you interested in investing in this type of deal?

I had Re-financed a different STR I own in Pigeon Forge & decided to roll that income into another successful deal in the area. This was an investment I took on with 2 other Investors so we can all bring our unique strengths to the project.

How did you find this deal and how did you negotiate it?

I had been researching on the MLS as well as Realtor/Zillow. This property had been listed for 2 MONTHS before I purchased it, it was quite shocking as this specific property was immaculate in person. It is in an up and coming area in Sevierville that some may have been weary of had they not known the many great qualities of this area. It is not what many Realtors or Investors are used to with our typical properties in resorts. This has a more typical AIRBNB feel in a normal area.

How did you finance this deal?

I had traditional Financing through a Lender I work with out of Alabama.

How did you add value to the deal?

I added Value with the small details guests appreciate upon arrival & with the Luxurious, Exterior Patio space. I am also Pet-Friendly which is HUGE in this area next to the Sevierville Dog-Park.

What was the outcome?

This has been a Successful Investment & if I were to sell after proving 1-year of Successful Rental history, I am positive it would appraise for more in this Tourist-focused area.

Lessons learned? Challenges?

I think the main challenge was determining how to create the Privacy fenced backyard to perfectly fit with this rental.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I was my own Realtor on this project - Blue Family Realty LLC
Ashley Langworthy was my Home Inspector - Bright Image Inspections

Yes, We share our cabins with friends and family often including condo in Destin! I love visiting the properties for off season especially when there is less traffic and so much quieter! 

Quote from @John Underwood:

Quote from @Ruth Blue:

I have the share of all shares. Imagine being the owner of the well that is shared with 4 other cabins. You have 1 solid year of no issues. Then the next year after a new owner moves in and starts asking to make lots of changes to the equipment. New filtration etc. This got the well company visiting very often because all of a sudden we started having random leaks, No one knew where, But over Christmas and 4th of July No Water. Well company was asked and asked how to monitor the equipment and levels with ZERO HELP... Moving forward with plenty of personal research. Commercial tank equipment monitoring added as well as wifi shut off and let's not forget cameras..... Well company videoed dumping 3000 gallons in an afternoon. YEP.... Story short. Changed well company, 1 shared owner sued for US to Dig him a new well, 18 months later case dismissed. 1 owner got different well company to fix old well on his property. So Now we only share with 3 others. Guess What.... Our water has been fine for the past 16 months. Only 2 leaks  and only losing 500 gallons before being stopped. Lesson.... Wells are good if you OWN THEM and Monitor everything.....  

Definitely a learned experience. You must be your own advocate and know your equipment. Don't just take the professionals word for it. 

 I added a wifi water level sensor I got off Amazon. Now I can monitor the level in my storage tanks via my phone and I can set alerts of my choosing in case the level drops below a specified amount.

Absolutely.... WE use PTLevel Wireless tank level monitor... It is very accurate and I love the graphs. For the Wireless shut off we purchased commercial grade Water Hero meter and Shut off. So far so good! 

Quote from @Ryan Heilig:

Hello, I live in CA and am looking to make an investment in TN or the Carolina's I we will most likely relocate out that way in the future. I do not want to invest in CA due to laws, politics, costs etc...I have  a good income with a full time job and 100-200k to begin building a portfolio with. I am looking for long term rentals & passive income and to reduce my current tax liability. Reading and learning as much as I can but welcome any advice, suggestions etc.. I already have stock holdings and looking to diversify with a real estate portfolio. Looking at starting with a small rental 3/2 or smaller multi family. Looking to build out a team to help with the process and grow for the long term. Any recommendations on mentors, realtors, PM's and real estate friendly CPA's are appreciated.

Hi Ryan

We lived in Orange County for about 13 years then moved back to East TN. We have been back now about going on 4 years. My mom has been in RE investing for over 25 years and we work together to help other out of state investors with their journey. It can be so helpful to talk about experiences and pathways for success. We own some property in Sevierville, Pigeon Forge, Gatlinburg as well as in Lenoir City and Loudon. This is an amazingly beautiful place. Tax advantages are excellent also. Welcome to the area. I work with a local CPA who has an online company and manages many CPAS in her company. 

Zane Abner
Happy to talk with you also. We are owners of Short Term rentals as well as managing for other owners in the area who just need a little extra help. We use Guesty Pro and it is awesome allowing owners to block their own dates and see all their bookings with personal login credentials. We used Guesty for Hosts when we were just doing our own but with Pro it also does the accounting.... Just sharing. 

I have the share of all shares. Imagine being the owner of the well that is shared with 4 other cabins. You have 1 solid year of no issues. Then the next year after a new owner moves in and starts asking to make lots of changes to the equipment. New filtration etc. This got the well company visiting very often because all of a sudden we started having random leaks, No one knew where, But over Christmas and 4th of July No Water. Well company was asked and asked how to monitor the equipment and levels with ZERO HELP... Moving forward with plenty of personal research. Commercial tank equipment monitoring added as well as wifi shut off and let's not forget cameras..... Well company videoed dumping 3000 gallons in an afternoon. YEP.... Story short. Changed well company, 1 shared owner sued for US to Dig him a new well, 18 months later case dismissed. 1 owner got different well company to fix old well on his property. So Now we only share with 3 others. Guess What.... Our water has been fine for the past 16 months. Only 2 leaks  and only losing 500 gallons before being stopped. Lesson.... Wells are good if you OWN THEM and Monitor everything.....  

Definitely a learned experience. You must be your own advocate and know your equipment. Don't just take the professionals word for it. 

Welcome Oliver

My family lived in Orange County, CA  for about 14 years and do sometimes miss it BUT we LOVE TN. We started with investments in Saint George, UT and Huntsville, AL then moved our investments out here to Pigeon Forge, Gatlinburg in 2017. It has been a wonderful journey and we are always working with friends from California. High prices from last year are slowly starting to settle moving forward with interest rates going higher. You can always refinance for lower rates lower purchase prices are where investors save. 

Welcome Nilsa

First steps can be intimidating but there are a lot of supportive networks here. Key to success is to read all the posts, read all the reviews, and learn what works for your strategy. Don't just take someone else word for how "easy" it is! This is a job and takes focus and commitment to be successful year after year.