If you know how many bedrooms and the general area within Gatlinburg I can do some quick research and plug everything into my VR performa for you and send a screen shot of the estimated weeks needed to break even, annual ROI and cash flow but here is what I would need to know: Are you self managing or hiring a manager? 

The rents on the homes bring in an additional 17x370 each month, bringing annual income to about 220k which make the NOI pretty good.  

(Same thing with the annual trash collection bill).  

. $58M in annual sales, good growth, industry has good long term prospects. 

.- TX domestic LLC reg. is $300 and then Annual Report will likely be $0 (unless gross receipts > $1M).

Are they a lone wolf or do they seem well connected to others?

With regard to inspections, if you have not already, you should have a list of preventative maintenance items and whether they are annual, semi-annual, seasonal, or whatever, and make it an addendum to the management agreement.

What can be an issue for us is the annual section 8 inspections.

Most HMLs charge 2-4 points and anywhere from 12-15% on the monthly interest (annualized). 

Below are the numbers (actual) not per forma obtained by the owner and agent:5 Units + Garage: Total $3,540 ( Type: 4 (2bds/1bath) & 1 (5bds/1.5bath) Revenues: Minus 20% of Vacancy: $2,852/month & $34,224/yearExpenses: Taxes (Annual) $10,614, Insurance (Annual) $2,678, Property Mgmt (8% of rent) $2,641.92, Maintenance/Repairs (Annual) $285, Utilities (Annual) $1,680, Cap Ex (5%) $1,651.20; Total: 19,550.12NOI: $34,224 - $19,550.12 = $14,673.88Valuation: NOI/CAP RATE = $14,673.88/8% = $183,423.50I did this on my excel spreadsheet and when I ran the numbers on the BP calculator I got a negative cash flow.