Report from the Smokies: BUY LOCATION!

[Collin Hays]

This is a true tale of two investors, both of whom bought in the fall of 2024 and hired our firm to manage their properties.

Cabin 1.  The first property is a tiny, 1 bedroom 1.5 bath log home in the Black Bear Falls resort in Gatlinburg.  Only 900 square feet. But it does have a spectacular view and a lot of cool resort amenities - pool, clubhouse, fishing pond, etc.  Sales price:  $488,000.  About $542 per square foot.

Cabin 2.  This property is a roomy, 1800-ish square foot cabin in the woods in Wears Valley.  Nice game room, updated kitchen, log beds, hot tub.  Sale price $475,000.  About $263 per square foot.  

Which was the better buy?   Cabin 1 did $51,000 in 2025.  Cabin 2 did about $34,000 in 2025.  The owners of Cabin 2 are unhappy with how it is renting and are putting it on the market.  The owners of Cabin 1 are delighted.  

Probably 90 percent of Smokies properties are "cabins in the woods."  And they are going to perform like 90 percent of Smokies properties - average.  If you are going to spend your hard-earned money to invest in a vacation rental, find a 10 percent cabin.  It will cost you a lot more per square foot, but your bank account will be far happier in the end.

[John Underwood]

Quote from @Collin Hays:

This is a true tale of two investors, both of whom bought in the fall of 2024 and hired our firm to manage their properties.

Cabin 1.  The first property is a tiny, 1 bedroom 1.5 bath log home in the Black Bear Falls resort in Gatlinburg.  Only 900 square feet. But it does have a spectacular view and a lot of cool resort amenities - pool, clubhouse, fishing pond, etc.  Sales price:  $488,000.  About $542 per square foot.

Cabin 2.  This property is a roomy, 1800-ish square foot cabin in the woods in Wears Valley.  Nice game room, updated kitchen, log beds, hot tub.  Sale price $475,000.  About $263 per square foot.  

Which was the better buy?   Cabin 1 did $51,000 in 2025.  Cabin 2 did about $34,000 in 2025.  The owners of Cabin 2 are unhappy with how it is renting and are putting it on the market.  The owners of Cabin 1 are delighted.  

Probably 90 percent of Smokies properties are "cabins in the woods."  And they are going to perform like 90 percent of Smokies properties - average.  If you are going to spend your hard-earned money to invest in a vacation rental, find a 10 percent cabin.  It will cost you a lot more per square foot, but your bank account will be far happier in the end.

How much is the HOA on cabin 1?

Are these Net or Gross numbers your showing?