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All Forum Posts by: Ken Boone

Ken Boone has started 8 posts and replied 958 times.

Post: Pigeon Forge - owner of 5/6 bedroom with indoor pool?

Ken BoonePosted
  • Investor
  • Greenville, SC
  • Posts 970
  • Votes 1,150

@Lucas Carl - Do those stats hold true in the 5-6 bedroom market?   I have always been told those bookings - although you do get some last minute type stuff, but a good portion of them are booked well in advance.  It is no longer a couple or small family situation that normally books a 1 or 2 bedroom cabin, but rather an extended family, church group, other types of groups, etc... and just based on the different individuals schedule of all the parties included, it would be hard to do a lot of last minute booking I would think.  What are your thoughts?

@Jonathan Pacilio - I can't say anything about that size pool cabin.  I have 2 two bedroom pool cabins in that market.  Having the indoor heated pool is the main draw in those cabins, and the gross rents far exceed the norm for a typical two bedroom cabin.  The pools at times can be a pain in the butt until you learn how to keep them managed.  Small indoor pools are a completely different animal than an outdoor pool.  They key is having a good pool service company.  It took me 3 attempts to get a decent pool service.  I first used my cleaning company as they told me they can handle pools.  That didn't go so good, I then used a specific pool cleaning company that came out once a week.  After a few months, I learned real quick that doesn't work.  You have to have pool service after every guest.  I don't care if they only stay 2 days, you have to have pool service.  I now have a good pool service company and the pain in the butt factor has gone away.

I am assuming you are looking at new construction, because a small number of pool cabins have been around, but nobody typically sells their pool cabins so you never see older ones on the market.  Here is what you need to watch out for:

Insist on a dehumidifier system in the pool room.  A lot of builders are not installing dehumidifiers in the pool rooms.  They will tell you that they are putting in a humidistat and an exhaust fan and that will keep the humidity in check.  I have run into 3 different builders so far that do not include dehumidifiers in their cabins and they all used that same argument.  I told the builder on my second cabin that I needed one, he insisted I do not.  I said look I already have a pool cabin and know how this goes.  He told me what they are doing is standard, blah blah blah.  A month after the cabin was finished he was running me a drain line and electric outlets for a dehumidifier.  Without one everything is covered in condensation, the windows, doors, outlet covers, etc..  Not as bad in the summer, but come late fall and winter, everything will be covered.  My buddy built with this same guy, I told him the same thing.  He decided he was going to go with what the builder said.. a few months later.. he now has  dehumidifier.

Post: Best Cabin Names (Mountains)?

Ken BoonePosted
  • Investor
  • Greenville, SC
  • Posts 970
  • Votes 1,150

I think the main thing with the name is to make sure you choose something unique for your area.  One of the cabins I purchased last year was named Million Dollar Views.  When I googled the name I found there were a ton of cabins in the Pigeon Forge/Gatlinburg market with that name or else it was Million Dollar View instead of Views.  Conventional wisdom has always been not to re-name an established cabin due to name recognition so we held on to it .. for awhile.  Then we started running into problems with confusion with my cleaner who had another cabin named Million Dollar View, then confusion with my pest control folks who had another cabin named Million Dollar View and then the ultimate happened.  We had a guest book a week in this cabin that were bringing some relatives with them.  Well one of the relatives googled the name of my cabin.  Someone in this market was doing a google ad on their Million Dollar Views cabin so when you googled it, the ad for it would pop up on the left hand side.  Their relative assumed this was our cabin, so they clicked on it and found some horrible reviews - really bad.  This was the day before their arrival.  We got a call that morning from the person that booked it, basically going off on on us and stating that all of these items better be fixed that were in these reviews or they want a full refund now.  We were like whoa what are you talking about.  Anyway, we explained that this cabin that their relatives looked at was not our cabin and our cabin is in excellent condition and very clean and they can verify this with our reviews.  Everything worked out in the end, but at that point we renamed the cabin.

I do think the name helps though.  I don't think the actual name itself will lead to 10-15k more bookings, but in the sense that word of mouth helps.  You have a guest, and if the cabin has a catchy name, a memorable name, they will tell other folks about it, and the name is what these other folks will google.  The other thing about the name is it lets returning guests have an easy way to find your cabin for their next trip.  They just need to google the name and not have to remember the VRBO or Airbnb numbers to find it.

Post: Startup costs for STR cabin in Gatlinburg

Ken BoonePosted
  • Investor
  • Greenville, SC
  • Posts 970
  • Votes 1,150

I have 3 STRs in the Pigeon Forge market.  1 was new construction and 2 were existing cabins when I purchased them.  The average startup costs for me was in the 15k range.  I pretty much tell my friends expect 12 to 15k in getting the cabin to where you want it for rentals.  Once you take over the cabin there will be other unexpected items you will need to purchase no matter if the cabin is new or old.  I think my friend didn't believe me until he got his cabin.  He does now! ;)  Of course this all depends on what you put in to your cabins.  You could come in less and you might come in more.  Anyway at this point 15k is my startup budget.  I plan for that number.  These costs will vary depending on the size of the cabin as well.  I have 2 two bedroom pool cabins and then the other is a 3 bedroom with an amazing mtn view.  If it is new construction the number is going to depend on the builder.   The builders up there are definitely not equal although they will all claim their cabins are all "rental ready".  Some provide all of the outdoor furniture and some do now.  Think about a 3 level cabin with 3 decks.  Need to put stuff on it.   Even the builder doesn't you need to  and the costs can vary greatly here depending on if you buy wood furniture or poly furniture.  Lots of variables depending on how you want to set it up.  

I'm sure there will be other opinions on it but I hope this helps.

Post: Purchasing 1st Vacation Rental - Website help

Ken BoonePosted
  • Investor
  • Greenville, SC
  • Posts 970
  • Votes 1,150

You guys have given me some good food for thought.  So I have easy access to stuff to build a website but I never thought about just sending it off to AirBnb for booking.  That greatly simplifies things.  I was thinking of the website in reference to what some of you have mentioned.  Just an easy thing to add to a tag line, or business card or flyer or whatever to take someone right to the pics of the rental.  I just wasn't sure how to #1 sync everything together or #2how you would handle bookings through your website.  I guess what I know now is that I can just link it off and I should be able to use a calendar widget that will sync via iCal to at least show availability.

I guess this brings up another question.   So when prospective guests contact you by phone, do you go ahead and book directly over the phone with them or do you still refer them out to VRBO or AirBnB?  I know with many of the vacation rentals I have stayed in as a guest, it seems like most of them booked it without going through VRBO and AirBnB.  Pros and Cons?

And just as an FYI... I have a couple long term rental units, but this is my first vacation rental.  With the numbers I am looking at now, it appears that this will be much more lucrative than the long term rentals.  If everything goes pretty well, I am planning to buy a few more of these.

Post: Purchasing 1st Vacation Rental - Website help

Ken BoonePosted
  • Investor
  • Greenville, SC
  • Posts 970
  • Votes 1,150

Guys,

Thank you all so much for your feedback.  Based on your comments I feel like I am going down the right path here and can't wait to get this thing going.  

Thanks again! 

Post: Purchasing 1st Vacation Rental - Website help

Ken BoonePosted
  • Investor
  • Greenville, SC
  • Posts 970
  • Votes 1,150

I am in the process of purchasing my first vacation rental.   Closing near the end of this month and I am trying to get all my ducks in a row.  The property was previously on a managed rental program and when I take over my wife and I are going to take over the management.  I have a photographer scheduled to be in there next week so I can get the photos done prior to closing.  I plan on posting on VRBO and AirBnB.  What are you guys doing as far as just having a website hosted to display your vacation rental.  Are you just going with any hosted provider?  Is there a way to have all the calendar's sync up between VRBO, AirBnB and a website?  Are there some hosted providers that specialize in websites for this type of thing?  Just looking for some feedback as to what some of you guys are doing.

Thank you.

Post: Getting Discouraged by the Numbers

Ken BoonePosted
  • Investor
  • Greenville, SC
  • Posts 970
  • Votes 1,150

Joanna,

I am near the Simpsonville area and drive through there several times a week. What I have found in this area for auctions is that a house that you described with no rehab needed will end up selling at auction for list price or higher. So many people are interested in these homes that the auctions in this area just don't seem to be a deal. They all seem to go for market price and that includes some that need rehab end up going for market price - repair. So no room to really get a deal. Taxes change drastically around here depending on where the house is, but that number is probably pretty close to correct. The Insurance should be much less. I am guessing closer to $800 or less. I really don't like HOA but if the numbers work thats fine. Its tough to make the numbers work if you aren't doing a 30 year mortgage and have positive cash flow. This really depends on your goal.

I just got started this past year myself.  I work with an agent that has been in this area for a long time that specializes in working with investors.  His company provides full service management as well.  He and his company do an excellent job and it has worked out well for me.  If you want to PM me I can pass along his contact information if you are interested.  

Post: Good property manager in Gatlinburg, TN area

Ken BoonePosted
  • Investor
  • Greenville, SC
  • Posts 970
  • Votes 1,150

Guys,

I have a couple long term rentals and was interested in maybe diversifing into a vacation rental next.  I don't have any interest in managing it myself.    I currently work with an excellent property manager that focuses on investors.  Do you guys have any recommendations for a full service property manager that not only manages property but also assists in locating potential vacation rentals in that area?

Thanks,