PigeonForge STR evaluation

[Himateja Madala]

Hello BP Family,

I am looking forward to buying a STR in Pigeon Forge Area for the purpose of Cost Seg. I chose Smokies because oh how popular the spot is.
Here is my choice
-Home on PUD lot(so land doesnt count for cost seg)
-Home with Pool
- Home with decent view(those with spectacular views are very expensive)

Although i look forward to break even/minor cash flow i am mainly buying this property to write off taxes. Given the many options in Pigeon Forge i am confused which criteria to prioritise
- Are views more important or bed rooms

-do above 4 bed room makes the maximum revenue?

- Are views more important or Swimming pool? What is major pain point with pools. If any one can give me approx numbers on the monthly costs to heat the pool @80% occupancy...

- Which  kind of property has  higher resale value? 

Given most of the homes are in the mountains what are some issues with homes in the area that are not common in rest of the country.

Is there any property manager who can run numbers for me and give a projection pls....

[Collin Hays]

Happy to chime in here and address your questions.  But I am confused as to your main purpose for buying.  You are doing it as a tax write off?  Can you go into more detail with your math on that?  You can only "write off" expenses, interest, depreciation, and taxes.  Such deductions are only deductions from your income - they are not a tax credit.  This is often misunderstood.

Investing in anything primarily for the tax deduction is a huge mistake - tail wagging the dog.  You want to invest in something that might make some money.  If a maximum tax deduction is your primary objective, find something that is vastly overpriced and will lose money from now on.  Sure, you are losing money, but you will get a bit of help on your taxes, instead of paying taxes on a profitable investment.