Fortunes made, fortunes lost, all on the same properties!

[Collin Hays]

When I began investing in the Smokies in 2005, this cabin development was being constructed a few miles away.  All of the units had pools. The units were priced at $899K and $999K, depending on which size of cabin you wanted.  Similar to the last few years, they got snatched up by eager buyers.  Then the financial crisis hit, and rents were way down. Several of these were bought out of bankruptcy or short sales for as little as $250,000.  Those buyers proceeded to make hay, the cabins rented well, and eventually the owners made tremendous profits by reselling them to eager buyers for $1 million + in the 2021-22 timeframe.  

But history tends to repeat itself.  We now have a glut of pool cabins in the Smokies with not enough guests.  The eager buyer of these cabins paid too much and is overleveraged.  The cabins are in foreclosure...again.  The next buyer will probably do very well.

[John Underwood]

It is interesting to see the cycles.

People that can hold on for the long term almost always fare well.