Are the Smokies Too Hot?
Hey there! I've been looking for our next STR investment and have been drawn to the Smokies...like so many other investors. I, of course, am looking for a deal. A diamond in the rough that we can improve and then increase rents and value. Not a major rehab, just something that's underperforming that we could fix.
As I evaluated the inventory, I started to notice the lack of "deals". This isn't a big surprise- it's a major tourist destination. But I was noticing that a number of properties available for sale had been purchased within the last 2-4 years and were now listed at 30%+ their previous sales price.
From Zillow (don't hate)
As I did some more digging, I found out that Gatlinburg / Pigeon Forge / Sevierville area has seen listing prices increase 24% in the last 12 months and 38% in the last 24 months. This is of course a bummer for me, as I'm looking for a solid investment and I can't imagine rent rates are keeping pace with these accelerating listing prices.
So I'm hoping to hear from you all that invest in the area. Are your STRs performing the way you'd like them to? Do the rents and occupancy rates justify these increased sales prices? Are there still deals to be had in the Smokies?
Let's discuss!