Selling 3/3 bedroom cabin to buy non-furnished 5/5 in Gatlinburg

7 Replies

Hello All, 

I have reached this decision making point and looking for advice. I have a very well performing 3 bedroom/2 bathroom cabin 5 minutes from downtown Gatlinburg. A great opportunity for a 5 bedroom/5 bathroom, non-furnished has come up. I would have to sell the 3 bedroom to get this 5 bedroom and then furnish it. With the cost being so high, and also the additional cost or financing of the furniture, the projected difference in cash flow is very little. I am already under contract for a different 5 bedroom cabin. Having never tested out the market for a 5 bedroom cabin for the entire year, would it be wise to consider selling the 3 bedroom for a second 5 bedroom without seeing how one would do?

I don't want to sell a well performing property but that is the only way to acquire the new 5 bedroom property. 

Generally, what does it cost to furnish a 5 bedroom house in your opinion?

Find a way to buy the new one without selling the performing one

There is a way.

Equity partner

Private money or hardmoney loan for downpayment

Seller possibly carrying back second mortgage for downpayment.

Money partner

Equity line against another property for downpayment.

Don't just say can't,  find a way.

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@John Underwood: Thanks for writing all that. You made me think. I'm definitely going to try to keep it and find a way. I needed to hear that. We are maxed out on equity line against properties but I will do my best to find other options.

@Luke Carl: Thank you. That's what I was guessing as well. Looks like you're in the area. Do you prefer one furniture store over the other up there. 

@Jeff Gold: YTD Gross was $79,000 and Net $26,000. 

Originally posted by @Anusha Udas:

@Bruce Woodruff: I agree. This year we made a lot of purchases from that account and that's why the net is low. Moving forward, I plan to do better. Thank you. What kind of ratio do you aim for?

 We do everything ourselves, but like to get at least 50%.