Questions for the Sevier County cabin rental cabal

[Joel Hollingsworth]

Hello world! First post on BP. Be nice.

First, a quick note about me. I'm a formerly-retired lawyer (UT-Knoxville law school) who is now practicing again primarily for the purpose of rebuilding an investment stash I lost in a recent business venture. I spent 2011-2018 trying to sell Tennessee Volunteers apparel in upper East Tennessee and literally losing all of my shirts in the process. (Pro tip: Don't try to sell fan apparel at a time when the team is in the midst of the worst 10-year streak in the 130-year history of the football program. Woo!)

Anyway, I'm wanting to join the STR cabin rental fray in Sevier County, and so I've been stalking @Julie McCoy, @Avery Carl, and @Lucas Carl, who intimidates me because he not only can digest thunderstorms, he seems to enjoy doing it.

I come with questions. Here are two to get started:

First, am I too late to the party? What you said about the recent appreciation bump in the area makes sense, but the higher prices are squeezing the cash flow numbers pretty good. How do you know if values are actually going up that much or if there are just too many competitors willing to overpay? Is rental revenue increasing accordingly? Okay, that's three questions already, but it only counts as one because I say so.

Second, property management vs. self-management. I know from following y'all (creepy, I know; sorry, but not really) that your take on this question is, "Hey, self-management is no problem, I can even do it remotely with no hands!" Well, maybe for thunder-crappers, but what about us mere mortals? And how in the world are all those PM companies getting away with charging 40% if it's not that hard? What all is involved?

Like I said, I have more questions, but those are the two biggest right now. Appreciate y'all being willing to share.

Am I supposed to sign these posts? I'm behind on my forum etiquette lessons. Whatever.

Sincerely,

Joel

[Avery Carl]

@Joel Hollingsworth this made me laugh! Luckily for you, thunder-crapping is a teachable skill and not something one is born or not born with, so you can do it too haha.

@Jay Fradd is right on with his answers on appreciation and difficulty in cash-flowing with a manager.  It's really just more of a personal preference on which way you want to go. @Luke Carl is on Sirius 12 hours a day to 32 million listeners and manages 5 without a manager.  It takes him a little over 30 minutes per property per week. However, everyone's situation is different so that's a decision that everyone has to make for themselves based on their own circumstances!  

They don't all take 40%, but even 20% is too much to pay someone for something I can do from my phone in my opinion.  But, everyone has different opinions and some may find that amount worth it.  @Alex M. has developed a pretty cool management model that's really cost-effective. His is the most innovative I have seen. 

Long story short, you can go with a manager or self manage. If you're happy with the cash flow number, then neither is the wrong decision.