Vacation Rentals in the Southeast

[David Gaudet]

After researching the variety of real estate investment options, my wife and I would like to purchase vacation rentals.  We are aware of the risks, but feel that the investment better suits are current needs.

We currently live in Raleigh and have been working with real estate agents in Asheville, Raleigh, and Savannah.  It's been difficult to navigate restrictions and recent legislation.  

Ultimately, we would love to spend $200,000-$300,000 to purchase a condo or apartment.  I am looking for location suggestions and any other advice people are willing to provide.

[Luke Carl]

Originally posted by @Waylen Herdman:

@Lucas Carl 

I'm assuming you're based in Nashville and self manage from there. That's impressive... I work for a STR property management company here in Nashville. The amount of times I have to make last minute trips to Nashville because of broken A/C units or my favorite, cobwebs on the porch that the guests don't feel comfortable knocking them down is mind boggling. What do you do if you receive a message at midnight expressing that the A/C went out it and is too hot and muggy for them to sleep? Do you send someone out ASAP or give them a partial refund?

If an AC goes out in the middle of the night I call my middle of the night AC guy and get it fixed within the hour and my or may not offer a refund depending on the situation and that particular guest. Are they throwing a fit or are they happy I had it fixed so quick? Either way I'll give them something. 

I have properties in Nashville and Chattanooga on top of my PF Gatlinburg properties. I do not do short term in these markets and have no interest in it. Self managing a VR is not for everyone. I find, for me, it's not worth it financially to not self manage. There's too many moving parts. With a property manager you're likely to make the same net income as a decent SFH LTR in a different market so why not just go after the SFH LTR? I use the heavy cash flow to support my business as a whole and contribute to down payments on LTRs. If I were to get a 6th VR I'd feel I'd need a 20th VR and I'd need to start hiring lots of folks to avoid using a PM. And that's just not the direction I see things going for me right now. 

The beauty of real estate is that there are unlimited options as to how you run your business and one of these options is going to work for the unlimited number of different types of investors!  I should also note my business model changes over time with each property I purchase and could change as soon as tomorrow. Constant evolution and education is the key! 

You said you're working FOR a PM. Which means it is probably your JOB to run to nashville and get paid to do these jobs or oversee them. I pay people to do things like that for me. Just as the owner of the properties you're helping out is paying you. Only my people work for me directly. And it gets easier to find people to work for you the more properties you own.

Again.... it's not for everyone. No one asks me questions about my LTRs because there are thousands of people that are better at it and have more of them than I do. Everyone wants to know how I'm making it in VRS. 

You said you're in Nahsville. Purchase prices are way higher in Nashville than they are in the Pigeon Forge Gatlinburg Wears Valley market. 

I have been thinking of buying a property in Clarksville and marketing it more as a corporate or military rental and if that didn't pan out I would LTR individual rooms to APSU students. Would you think this is a solid idea or more of a "wouldn't touch it with a ten-foot pole?"

I looked heavily into the Clarksville market. It wasn't for me. But that doesn't mean it can't be for you!!! It sounds like you're on the young side or just starting out. Keep saving up your pennies for a down payment and read one non fiction book per week and you'll be very wealthy.