Gatlinburg: $1000 psf

[Collin Hays]

I figured this day was coming.  A good friend of mine just bought two-500 sq ft rental homes in Gatlinburg for $1 million.  Granted, these are near downtown and right on the Roaring Fork River.

This isn’t an out of state speculator; he’s a seasoned local pro, and said the numbers on this work quite well.

Still, incredible.

[Nathan Gesner]

Do you actually know the numbers? If each unit rents for $175 a night for $300 nights a year, that's only $105,000 before expenses. A good long-term rental will earn 1% of the purchase price monthly, which would be $10,000 per month or $120,000 per year. So the earnings are quite a bit lower than a long-term rental and that's before considering the additional expenses (utilities, lodging taxes, landscaping, etc.).