How slow is Gatlinburg/Pigeon Forge?

[Collin Hays]

I did a quick check on VRBO for a McMansion cabin this weekend - Friday and Saturday only, 10 people, 4 bedrooms, 4 baths.  There are over 50 pages of vacancies, which means there are hundreds of McMansion cabins available, for as little as $254 per night, including all fees and taxes.  By my math, that would put actual nightly rent in the $130-150 range, on cabins that recently sold for between $1 and $2 million.  At 10 guests, this works out to $13-15 per night per guest. That rivals Salvation Army.  

No wonder my cute 1-bedroomer @ $90 sits empty.  

Regarding home sales, I talked today to a well-connected realtor in the area, Phillip Derosia, who told me things are not moving at all, even with significant price cuts.  He knew of a short sale just last week.  

An interesting year this will shape up to be.  

[Jay Hinrichs]

Quote from @John Underwood:

Quote from @Jay Hinrichs:

Quote from @John Underwood:

Quote from @Jay Hinrichs:

Quote from @John Underwood:

What I see as crazy is that someone down the street from our cabin just built a brand new cabin to rent out. How in the world are they going to even break even after paying for a new construction cabin? I don't see them faring well.

On the plus side our June and July look to be the best ever at our 6 bedroom cabin. Maybe because we are very established?

It seems word of mouth helps us a lot. Someone stays with us then their cousin, aunt etc end up direct booking with us.

do you guys follow the NODs there or attend courthouse foreclosure auctions in that county ? might be a time to start.  Even if the props are over leveraged sometimes the banks will drop the opening bid and some deals can be made.. just curious ..

What is NOD's?

I live 3 hours away, but don't have a day job and I am always open to an opportunity.

I'd be open to buying cheaper properties too where all the service industry workers could afford. I've heard there is a real need for this type of housing. 

Although in reality if these "cabins" are 1 to 3 mil with the associated max debt investors seem to like might now be a lot of activity at courthouse steps.. not many have 750 to 2 mil in cash to buy at courthouse given the risks associated.  CA of course happens every day as there are groups/individuals with some serious horsepower in those markets buying courthouse steps.

 Sounds like what we call a Lis Pendens.

Yes same purpose.. Lis Pendens is when your doing mortgage foreclsoures through the courts.. NOD is done with Deeds of Trust and the power of sale with a Trustee NO court needed the trustee has the power to conduct the sale.. Trustee's are generally foreclosure mills owed by attorney firms.. But Trust Deeds allow for much quicker foreclosures than mortgages since they are not bogged down in the courtrooms. U can still do a mortgage and judicial foreclosure on the west coast and those happened during the robo signing foreclosures.. But when market is normal its all trust deed and Trustee sales.. Its the same in GA TX and of course all the west coast states OR WA CA AZ NV etc. I looked at foreclsoures in N. Carolina and those things are very complicated with the overbid process. Cant recall TN process although I funded a bunch of stuff in Memphis over the years just never dove into courthouse defaults in that state simple google search will tell us though.