Appreciation in PF a concern?

[Phung Vo]

Hello all!  Long time lurker, first time poster! I have learned so much from these forums and feel like I am ready to jump in!

I currently have 2 LTRs but I want to get my feet wet in the STR market! However, these feet are starting to get alittle cold!

I am in a good situation, financially, to be able to entertain buying a cabin in Sevierville!  I'm going big, looking for 4 bd /4 ba BUT, they are easily going for over $1 million.

Advice and/or reassurance would be greatly appreciated!!!  Would it be more prudent/responsible to maybe get started with something a tad less expensive?  

Thank you all!!! 

[Joshua Strickland]

The market could be at the top, or it could just be ROI compressing. There is as much data as to why it could crash as to why it will continue to go up. For purchase price it is all about your comfort level. The management of, and learning curve, between a 1 bedroom and 4 bedroom is essentially the same. I would just buy something that I could still have a solid 6 months reserves just in case.
Also run the numbers to see how much rates would have to drop for you to not to be able to pay the monthly nut and ask yourself if you think that will happen. You’ll probably find they could be cut in almost 1/2 and your still covering. It’s a fun experiment.