I'm looking to network with other investors that own properties in the Great Smokey mountains. I'm an investor in Columbus, OH. I love the south and a recent visit to the mountains spraked some interest in that market. I'd like to start a dicussion with other investors that have invested in rental Cabins to see what their experience was like.
I closed on our first short term rental (ever) and in Pigeon Forge/Gatlinburg in early December 2019. I looked all over the US for a property. We were doing a 1031 exchange from a long term rental. I didn't want to do Florida and the Gatlinburg area shows up as one of the top areas to invest. We have an outstanding, more than full-service Realtor, Crystal Johnson at the Jason White Team. She patiently worked with me long distance as I waited for the first property to sell, including sending videos of properties. Most importantly she understands my insistence on a good ROI and my exhaustive spreadsheet with ever possible expense accounted for. Which wasn't a problem as she owns her own rentals. She has contractors, and one of them was able to the required work done for us to get our short term rental permit in just two weeks. Our first renters arrive on 12/26. With the help of Crystal and the team at our property management company, TimberTops (as known as Amazin View Cabin Rentals), the cabin will be ready in time. TimberTops is a full-service management company that does take more than 20% but they have their own cleaning and maintenance staff with 24-hour guest support. They helped me set up the cabin by accepting furniture deliveries, installing TV's, meeting the cable guy, etc. They also do all of my marketing and set my nightly rates. Many of the listings here include verified income but for those that didn't, I had the property manager provide an estimate of gross income. My realtor has a friend who decorated the cabin for Christmas for me. It has been an amazing, crazy, exciting and exhausting month.
@Matthew Peterson from what I understand, the spas have to be drained and refilled in between each guest, so maybe @Luke Carl can tell you if an 8 person size spa is recommended. I have one that large at my second home, and know that's a lot of water to drain, refill, and heat up.
You mostly find 5-6 person hot tubs here (I am in Gatlinburg now), although a bigger one would play to a larger group. We have rules limiting our use to adults 25+. It doesn’t stop people from letting their kids play in it like a pool but it keeps them from complaining about the size.
The water capacity could be a minor issue if your homes will be on wells. But for us its just another cost, and a relatively small one. @Lauren Kormylo is correct that they are supposed to be emptied, cleaned, then refilled between guests. Bigger makes that harder to do.
@Lauren Kormylo Wow! I had no idea about the draining and cleaning. Do the cleaning crews usually do that? I guess I just thought those things were like pools, no matter what happens in them, chlorine takes care of it all! : ) I’ve obviously never owned a freestanding hot tub.
Yes, the cleaning crews do that. I had never heard that spas needed draining in between guests either, before reading the posts on the Smoky Mts area. When you go to a hotel, they certainly don't drain the spa every day, but I guess the difference is there is an employee to clean and adjust the chemicals every day, unlike in an STR. And with the water being hot, bacteria grows faster than in a cold swimming pool. Those spas can take a long time to heat up depending on the size, air temp, and heater ability, I've seen complaints from guests that the spa wasn't hot enough the first night. I know our 8 person one usually takes overnight to get up to temperature, so I would take the advice here and downsize to a 5-6 person one.
@Justin Blackman we owned our first property in Gatlinburg and it between the management fees, maintenance, and utilities, we sold after a year. It’s really hard to cash flow positive unless the property is completely paid off. The market is good in that region but unless you self manage, it may not be the pot of gold you were hoping for. I’m glad to share some lessons we learned along the way to help you navigate the process and rental if you do choose to move forward.
@Lucas Carl Have you always handled your STR's on your own? I had some Long term rentals in Florida that I owned for about 10 years, and other than one pain in the rear tenant who would call me at 2 AM every other week with problems, it was relatively pain free. I think that one tenant put a bad taste in my mouth regarding troublesome renters and I just assumed that STR's would contribute the fair share of demanding individuals. Being in Atlanta, I get a little nervous about something going wrong and it's a 4 hour drive for me to get there. That's mainly the reason I'm leaning to a management company. I found a reputable one that charges 20%, but if it's easy to handle on my own, I'm inclined to proceed that route.
My husband and I have had long term rentals in Florida for almost 10 years, and we live in NJ. We have a contractor that handles the repairs/turnover, and I manage everything else. We were interested in the STR market in Gatlinburg, as we have a friend who bought a cabin there, all cash investment. She had to move from CA to TN to stabilize the operation - cleaning people that didn't show up, contractors stretched thin, etc. She took on the cleaning herself for a while. While it did seem like a pot of gold, and we were looking into it, we decided one long distance investment strategy was enough to handle. She said it's much more work than she anticipated.
My husband and I have had long term rentals in Florida for almost 10 years, and we live in NJ. We have a contractor that handles the repairs/turnover, and I manage everything else. We were interested in the STR market in Gatlinburg, as we have a friend who bought a cabin there, all cash investment. She had to move from CA to TN to stabilize the operation - cleaning people that didn't show up, contractors stretched thin, etc. She took on the cleaning herself for a while. While it did seem like a pot of gold, and we were looking into it, we decided one long distance investment strategy was enough to handle. She said it's much more work than she anticipated.
I’ve got 6 STRs in 2 different states and 26 doors total that I self manage. I also have a day job and a family. Real estate is a job. It takes effort. Put systems in place and it becomes easier. Sometimes I forget all about my STRs. Sometimes I want to choke people.
@Lucas Carl Have you always handled your STR's on your own? I had some Long term rentals in Florida that I owned for about 10 years, and other than one pain in the rear tenant who would call me at 2 AM every other week with problems, it was relatively pain free. I think that one tenant put a bad taste in my mouth regarding troublesome renters and I just assumed that STR's would contribute the fair share of demanding individuals. Being in Atlanta, I get a little nervous about something going wrong and it's a 4 hour drive for me to get there. That's mainly the reason I'm leaning to a management company. I found a reputable one that charges 20%, but if it's easy to handle on my own, I'm inclined to proceed that route.
You've got to change your way of thinking if you want to make this work. For no reason would you ever need to drive 4 hours each way if something goes wrong. It's completely unnecessary. As for the tenant calling at 2am.... sorry to say that was your fault. There is NO reason to answer the phone after business hours. Answering the phone at 2am dealing with a tenants only teaches them that they can do it again and you will play psychologist while they're drunk. I in fact NEVER answer the phone when an STR guest calls me. I also don't allow texts. It's written in my listing. My long term tenants get a different phone number than my guests. (Google voice) is a LTR tenant calls or texts me after hours I get back to them the following business day at 9am. I don't mention these rules to tenants but after a few irrational phone calls they get the idea and start leaving me alone.
The only reason they should call at 2am is if the kitchen is on fire. And in that case they wasted 5 minutes calling you that they could have called the fire department.
@Luke Carl hi Luke! You mentioned that you manage your STR properties while having a day job. Do you mind sharing "tools" that you use - smth like Ownnerrez, Lodgify etc.? And how do you manage your cleaning people, is there any automates service that notifies them about schedule? We just got a cabin in Blue Ridge Mountains and i am trying to start with a right tools and right processes to make the whole thing easier. Thanks!
@Jenn Sherdon I have been keeping my eye out on cabins and I think I have finally found something. Do you have a great realtor you could recommend? Please, share and congrats on your new cabin.
@Jenn Sherdon hello! I’m just curious how it has been owning and self managing a cabin in Gatlinburg! I’m looking to buy one myself and wanted to reach out to someone who has been doing it. Thanks!