Sell? Rental Cabin grossing $115,000
I own a 4/4 cabin in Pigeon Forge area grossing $115,000. Comparable cabins are selling for around $950,000.
I am trying to figure out if I should sell this cabin or not?
Hey Cathy! There are a few places where 950K for a 4/4 is normal but most that I see are still going higher than that. So, if you are thinking about selling at 950K....if your place is in a decent location and condition you might get more:)
@Cathy Rinehart your decision to sell will depend on a lot of different factors. Do you need the money? Is the property a hassle for you to manage and you want to be done with it? Do you have a plan in place to reinvest your cash with better returns than you're getting now, and will it be worth the closing costs and realtor fees you'll pay?
Don't sell for no reason just because you think prices are good.
#3 Managing Your Property Contributor
I agree with Kevin. What are you plans if you do sell it? If it is to buy another rental, compare the rates of return.
This will be the most anti-realtor thing ever said in history of realtors... but if you're making good money, you own it outright or you're locked into a solid interest rate that you can no longer get and/or you're not having any issues with ownership, just keep making that money!
If your personal circumstances have changed, for example, you don't want to put in the work managing or maintaining it, you want to move markets, or you have concerns about the economy, etc., then those are all worthwhile reasons to sell.
Hope that helps.
Hi Cathy!
The market is definitely up for the Smoky Mountains. Although I would consider what you intend to do with the money once you sell & if you want to invest it elsewhere if there are properties available that would be worthwhile to invest in cash-flow wise. We have considered selling some of our family cabins but have decided not to as the income is worth keeping, but if another investment presented itself with higher cash-flow & a lower initial investment it may be totally worthwhile.
A 4/4 for $950k sounds pretty spot on, although I may wait until after the season to sell to make all your rental income. With interest rates on the rise it is a bit worrying to potential Buyers, there are quite a few options at play to see what fits for you & your family right now.
Best of Luck with your cabin :)!
