New to Real Estate · Roswell, GA · Member since 2015 · 2 posts · 1 vote
Having looked at over 200+ overpriced properties in the FL(Panama City/Orlando),TN (Pigeon Forge), GA where i have not been able to figure out any positive cash flow scenario. Yet, they are all flying off the shelf in a bidding race.
What am i missing? Are there any markets worth looking at, or best to let it cool off for a few.
Investor · Chicago, IL · Member since 2020 · 148 posts · 97 votes
5y
It is frustrating for investors right now who are looking in markets with high demand and low inventory. Have you looked at Branson, MO? This market has become very popular and is seeing positive cash flow.
Investor · Chicago, IL · Member since 2020 · 148 posts · 97 votes
5y
It is frustrating for investors right now who are looking in markets with high demand and low inventory. Have you looked at Branson, MO? This market has become very popular and is seeing positive cash flow.
New to Real Estate · Member since 2020 · 220 posts · 107 votes
5y
@Melissa Wesling my thinking as well. I think there are some pockets in that area that could do well. I’m considering exploring it more. Most of that area can’t compete with PF and Gat though.
New to Real Estate · Member since 2020 · 220 posts · 107 votes
5y
@Abhi Jain I couldn’t make the numbers work either. You will need to look into building new and offer something the older cabins don’t have. I just paid a MINT for a huge view lot. I don’t even want to think about how much I paid for it because it’s depressing but when it’s all said and done it should kill it in a rental program.
New to Real Estate · Member since 2020 · 220 posts · 107 votes
5y
I guess what I meant to say is there are small pockets that are doing PF/Gat like numbers. The STR owners there haven't necessarily figured out what amenities make these successful. It won't be long before the knowledge from PF/Gat spreads that way.
I guess what I meant to say is there are small pockets that are doing PF/Gat like numbers. The STR owners there haven't necessarily figured out what amenities make these successful. It won't be long before the knowledge from PF/Gat spreads that way.
Yes Pigeon Forge and Gatlinburg definitely have figured it out already. Branson's vibe is a little different than the Smokies, so each market provides a unique vacation experience. The folks around Table Rock Lake seem to have it all with both the nature amenity and entertainment nearby.
Property Manager · Pigeon Forge · Member since 2016 · 199 posts · 208 votes
5y
At present prices in PF/G you should be able to get at LEAST a 10-15% COC return with 20% down. (Obviously that doubles if you do 10% down) Just be smart about what you buy (meaning don't spend 700k for a 2BR).
As to whether the market will dip both rate wise and cabin price wise is anyone's guess. While the market has been extra hot, I think that's a bit of a nationwide issue and not just this market.
Note that this needs to be very well managed with rate optimization dialed in tight. The airdna numbers are way, way low from what we get. (Our worst 1BR cabin paid out over 60k last year to the owner where airdna expected 32k.)