Long story short a family member is about to have a STR Cabin in Gatlinburg. Im just trying to make sure the price is somewhat in line. Here is what I know 2 BR 2BR Cabin around 1200 SQFT will be completed this year. It will be in Gatlinburg city so it is a good location and also on the city water . The guests will have access to the community pool. The cabin will be completly furnished including a hot tub. Is between 600K-650K in the right ball park for this? I understand the market has gone up drastically in the last couple of years and Im also aware that this is probably not an ideal time to buy
Whether the numbers work for them is one thing. The price of the cabin is market rate right now from what I have seen for a new build. It is what it is.
Right!
I'd be more concerned with analyzing the numbers to make sure this cabin can be profitable.
Investor · Greenville, SC · Member since 2015 · 1k+ posts · 1k+ votes
3y
Whether the numbers work for them is one thing. The price of the cabin is market rate right now from what I have seen for a new build. It is what it is.
Whether the numbers work for them is one thing. The price of the cabin is market rate right now from what I have seen for a new build. It is what it is.
Right!
I'd be more concerned with analyzing the numbers to make sure this cabin can be profitable.
Thanks I understand that at the end of the day the numbers have to workout
But first of wanted to make sure it was in the right range of the market because I’m very unfamiliar with this market…it’s supposed to be a “ deal” according to the seller but you know how that goes
I have been researching and it seems comparable but thought I would ask of those that might have actually done recent deals
Thanks I understand that at the end of the day the numbers have to workout
But first of wanted to make sure it was in the right range of the market because I’m very unfamiliar with this market…it’s supposed to be a “ deal” according to the seller but you know how that goes
I have been researching and it seems comparable but thought I would ask of those that might have actually done recent deals
It doesn’t seem like a deal that will be profitable. It does seem reasonable based on what cabins are selling for that are new construction though. I wonder if the smokies are becoming like the mountain west where people just want to own a place regardless of the profitability. I suppose we will find that out next spring when 2023 rental numbers are fully baked in.
Thank for your input I understand this isn't an ideal time to buy but this will be a 1031 so stuck buying in the required time frame. I'm getting more information about the deal. Ive finally seen pictures and the views from this cabin are bad ( I know that can be a deal breaker) it also will be packed in tight with other cabins.
I know this will vary from cabin to cabin but my estimations Ive gathered from researching the last week or so is that slow season expect rent as low as $140 a night, Busy Season highs around $300 a night but the average most of the Year will be around $200-$230 with occupancy rate somewhere between 70%and 90% is this a fair assessment?
Thank for your input I understand this isn't an ideal time to buy but this will be a 1031 so stuck buying in the required time frame. I'm getting more information about the deal. Ive finally seen pictures and the views from this cabin are bad ( I know that can be a deal breaker) it also will be packed in tight with other cabins.
I know this will vary from cabin to cabin but my estimations Ive gathered from researching the last week or so is that slow season expect rent as low as $140 a night, Busy Season highs around $300 a night but the average most of the Year will be around $200-$230 with occupancy rate somewhere between 70%and 90% is this a fair assessment?
I’d budget for 50k a year in rents on this.
there’s someone who paid 600-700k in this area for a 2 bedroom earlier this year that was also a 1031 exchange. The property sits empty even in the summer right now because the asking price is too steep for the market. He avoided taxes by purchasing it, and he’s harvesting some loses to carry forward on the acquired property.
New to Real Estate · Member since 2020 · 220 posts · 107 votes
3y
$520/sqft it is not a deal… unless it has a great view and a pool. I wouldn’t buy anything right now and would hold off another 6 months and see how far the prices drop. Also, rates will come down in a year IMO. This doesn’t help with the 1031 though. I wouldn’t touch a property without a view unless it’s walking distance to the strip or it’s on a river or creek. I’ve been preaching “Mountain View” here for a while and in times like this (recession years) it will separate you from the cabins that aren’t renting.