Atlanta, GA · Member since 2014 · 240 posts · 130 votes
Hello BP!
I wanted to introduce myself. My name is Josh, and I have been investing in long-term rentals in Atlanta for four years. The market's on fire here, so I thought I'd try a new strategy -- vacation rentals in Gatlinburg / Pigeon Forge!
Thanks to Lucas and Avery Carl (top contributors in this forum), I have acquired my first cabin, and we have our 7th guest staying there right now. It's been an exciting journey, and though I am a little nervous about it, I'm also enjoying the ride.
So, just saying 'hello'! Please reach out -- I'd love to connect with you, especially if you are renting cabins / condos / etc. in this area.
Rental Property Investor · Castle Rock, CO · Member since 2017 · 335 posts · 387 votes
7y
Welcome @Joshua Feit and congrats. I have two and looking for #3. Spent last night doing the books and my ROI has been incredible. Couple of suggestions if you don't already know -- have Avalara MyLodge handle your local occupancy tax submissions ($20/mo). Use OwnerRez.com for consolidated messaging, rates, email automation, and more. Wix.com for a website if you want to take direct bookings and save on fees, keep your cleaners happy (pay them well and tip at Christmas, etc), join the Smoky Mountain Owners Facebook group which is chock full of helpful people.
Oh, and if your HVAC unit is more than 6-7 years old just replace it. HVAC has been my #1 problem.
Orlando, FL · Member since 2017 · 241 posts · 254 votes
7y
Yes. We have 4 so far and are always looking for more -- I am just pretty picky with my numbers. We also have a restaurant in the area so definitely feel its a great place for investment.
Atlanta, GA · Member since 2014 · 240 posts · 130 votes
7y
@Chuck Kramer -- Nice! That's amazing. My first cabin is in Shagbark (Sevierville). I have a second one under contract right now -- it's a little further south in Wears Valley (Raccoon Hollow Dr).
Atlanta, GA · Member since 2018 · 66 posts · 32 votes
7y
@Joshua Feit do you mind sharing your numbers? My husband and I LOVE to vacation up there as much as possible. Getting some cabins is on our 5 year to-do list.
Orlando, FL · Member since 2017 · 241 posts · 254 votes
7y
@Joshua Feit I know those exact houses, I am sure. Very little pops up for sale that I haven't seen. I spend a lot of time in the area and move quickly on any for sale that interest me.
You have two nice places there that will provide some good long-term gains as well as make money now. That area heading out 321 towards Wears Valley is going to grow like crazy in the coming 3-5 years.
Well, it's early to share the income numbers, as we've only owned the first cabin for three weeks. But here's a quick look at the acquisition.
We bought a 2BR cabin that sleeps 6 in Shagbark / Sevierville. Our purchase price was 200K, though I haven't seen anything like it since for less than 225K. We put about 10K into it to get it all ready to rent (new beds, couches, kitchen stuff, sheets, towels, light fixtures, etc.). We estimate it is going to cost about $1,800 - $2,000 mo. all in to run it, including mortgage (PITI), repairs, HOA, Utilities, etc. I'm hopeful that we will make around $1,000 above that each month during the busy months. I've been told that Jan/Feb are slower, and so far, that seems to be true.
We are self-managing on Airbnb, and thinking about getting it on VRBO as well. It's a lot of work to manage the guests, but even as a beginner, I am feeling confident about managing it from afar (Atlanta).
Avery Carl is a great agent, and you should connect with her. @Avery Carl Let me know if you think my numbers are off!
Well, it's early to share the income numbers, as we've only owned the first cabin for three weeks. But here's a quick look at the acquisition.
We bought a 2BR cabin that sleeps 6 in Shagbark / Sevierville. Our purchase price was 200K, though I haven't seen anything like it since for less than 225K. We put about 10K into it to get it all ready to rent (new beds, couches, kitchen stuff, sheets, towels, light fixtures, etc.). We estimate it is going to cost about $1,800 - $2,000 mo. all in to run it, including mortgage (PITI), repairs, HOA, Utilities, etc. I'm hopeful that we will make around $1,000 above that each month during the busy months. I've been told that Jan/Feb are slower, and so far, that seems to be true.
We are self-managing on Airbnb, and thinking about getting it on VRBO as well. It's a lot of work to manage the guests, but even as a beginner, I am feeling confident about managing it from afar (Atlanta).
Avery Carl is a great agent, and you should connect with her. @Avery Carl Let me know if you think my numbers are off!
You say self-managing on Airbnb...does that mean you're turning the cabin after every rental or do you have someone doing that for you?
Orlando, FL · Member since 2017 · 241 posts · 254 votes
7y
@Joshua Feit You should also seriously consider listing it on VRBO as well. AirBnB is gaining ground, but VRBO is really popular for rentals in this area. That may change as time goes by, but you don't want to miss out in the meantime.
Of our 4 cabins, our 2018 breakdown is 62% VRBO, 23% AirBnB, 8% FlipKey, 4% Booking.com, 3% referrals. No rentals from Expedia but did get a few inquiries.
Atlanta, GA · Member since 2014 · 240 posts · 130 votes
7y
@Chuck Kramer I have the VRBO listing all filled out. Really appreciate your advice. I'll pull the trigger on that!
@Julia Fair I am working with a cleaner in the area, and I have an on-call maintenance person. Self managing just means I am not working with a cabin booking agent, and that I handle all bookings and guest interactions myself. It's a good amount of work, but I'm getting my systems down, and it's already getting easier!
@Chuck Kramer I have the VRBO listing all filled out. Really appreciate your advice. I'll pull the trigger on that!
@Julia Fair I am working with a cleaner in the area, and I have an on-call maintenance person. Self managing just means I am not working with a cabin booking agent, and that I handle all bookings and guest interactions myself. It's a good amount of work, but I'm getting my systems down, and it's already getting easier!
Got it, that makes sense! Well good luck with it! Hope to be making the same post in the next 5 years!
Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
7y
Welcome @Joshua Feit! Congrats on your first investments in the Smokies, I'm sure you'll be thrilled with them! I'm up to three cabins and planning on getting a fourth sometime soon. Yes, Jan/Feb are slow but I was shocked at how busy March was for me last year, hopefully the same will be true this year. I do encourage you to list on VRBO as well - most of my bookings do come via AirBNB but VRBO still accounts for a meaningful percentage. You're working with fantastic people who won't steer you wrong. :)
Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Joshua Feit I've got one deep in Sky Harbor, one close to (but not in) Parkside Resort, and one in Hidden Mountain West. Mine are all 1/1 or studio, I prefer traveling couples vs. families :)
Rental Property Investor · Clarksville, TN · Member since 2017 · 73 posts · 99 votes
7y
@Joshua Feit that's awesome! We visit Gatlinburg at least once a year. We live in middle Tennessee. We also own and manage short terms in our area. Short term rentals are such unmet demand in a lot markets!
Rental Property Investor · Williamstown, KY · Member since 2017 · 21 posts · 8 votes
7y
Congrats @Joshua Feit ! You mentioned that you have a local on-call maintenance person. Is that a local handyman type business that you’ve talked to about contacting on short notice or more of an actual property maintenance company?
Atlanta, GA · Member since 2014 · 240 posts · 130 votes
7y
@Patrick Clark It is a local handyman business. Property maintenance companies charge too much, require contracts, etc.
I have had exactly seven guests at the cabin so far (since December 17), so I'm no expert. But I can tell you that with short term rentals -- the guests let you know EVERYTHING that is wrong with the place. So it is pretty easy to know when something is going wrong.
I plan on going up to the cabin 2-3 times a year to evaluate, have a look around, and see what needs to be fixed. I will also get my maintenance person to meet me there at that time so that we can look everything over together, make a list, and get everything fixed up.
Other than that, I plan to make repairs as needed by calling my repair person.
Rental Property Investor · Williamstown, KY · Member since 2017 · 21 posts · 8 votes
7y
@Joshua Feit
Nice. What sort of agreement/commitment were they able to give you as far as response time? That is the thing that I’ve been concerned with regarding managing a listing from afar.
Currently I, along with a partner, have one locally and I am acting as a project manager for my parents to get their first STR online that I will manage. Since they are local I am obviously able to respond for any time sensitive issue. Luckily in the 6 months that my listing has been online there has only been about three issues that my wife or I responded to (one wasp sting, and two wifi router issues).
Around me I am not aware of anyone that would be able to respond in a timely enough manner for STR issues.
@Patrick Clark It is a local handyman business. Property maintenance companies charge too much, require contracts, etc.
I have had exactly seven guests at the cabin so far (since December 17), so I'm no expert. But I can tell you that with short term rentals -- the guests let you know EVERYTHING that is wrong with the place. So it is pretty easy to know when something is going wrong.
I plan on going up to the cabin 2-3 times a year to evaluate, have a look around, and see what needs to be fixed. I will also get my maintenance person to meet me there at that time so that we can look everything over together, make a list, and get everything fixed up.
Other than that, I plan to make repairs as needed by calling my repair person.
This is exactly how we do it. In a market with 13 million tourists and only 94k residents in the entire county.... it's nothing but VRs.
Atlanta, GA · Member since 2014 · 240 posts · 130 votes
7y
@Patrick Clark In Gatlinburg/PF, there are so many VRs that the repair businesses are pretty much all available for on-call emergencies. The person I work with will come out 24/7/365 if needed. I actually had someone out there on New Year's Eve (day) to repair a hot tub heat pump.