Smoky Mountain STR New Investors!

Short-Term & Vacation Rental Discussions
4yFollow

Smoky Mountain STR New Investors!

Landon Bleau
Rental Property Investor · Toledo, OH · Member since 2018 · 309 posts · 264 votes

Hello! I'm a recent college graduate and investor from Ohio looking to expand into STR in the Smoky Mountains and would love to connect with others who are looking to buy their first property in that area. Would love to connect and kick some ideas around with each other as to where specifically we're looking, how many beds/baths, projecting revenue, financing, finding cleaners/handymen, problems we're facing, and what other systems and processes we're looking at implementing to hit the ground running. If you have any interest in STR in Smoky Mountains, let me know!

0Reply
41 views

Most Popular Reply

Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
4y

I own 7 STRs in the Smokies and manage another 21.  Feel free to PM me with any questions.  It's a great area, but it's all about the deal.  I have seen folks getting ripped off over the last year.  Panic buying.

[email protected]806-672-7102
SMOKY MOUNTAIN FALLS INC.51 Review
WebsiteView Page
5Reply
See this reply in the discussion

25 Replies

Jump to latestLatest
  • Billy Daniel
    Rental Property Investor · Russellville, AR · Member since 2014 · 684 posts · 509 votes
    4y

    Hey Landon! BP just released a podcast featuring Avery Carl (Ep 517). She's a STR expert and mentioned she invests in the Smokies. Check it out!

    3Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    4y

    I have been looking and making offers, haven't landed anything yet.

    1Reply
  • Ethan McCarty
    Investor · West Union, OH · Member since 2018 · 40 posts · 23 votes
    4y

    We have one one bedroom cabin up and running and have another under contract. 

    As mentioned above contact @Avery Carl at the STS. Her team can help you with everything you are looking for. 

    2Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    4y

    I own 7 STRs in the Smokies and manage another 21.  Feel free to PM me with any questions.  It's a great area, but it's all about the deal.  I have seen folks getting ripped off over the last year.  Panic buying.

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    5Reply
  • Landon Bleau
    OP
    Rental Property Investor · Toledo, OH · Member since 2018 · 309 posts · 264 votes
    4y
    Originally posted by @Collin Hays:

    I own 7 STRs in the Smokies and manage another 21.  Feel free to PM me with any questions.  It's a great area, but it's all about the deal.  I have seen folks getting ripped off over the last year.  Panic buying.

    I appreciate that!  How long ago did you buy your 7 STRs?  Would love to build up a few cabins there but at the price everything is currently at, seems like it'll take quite a while to have the funds.  

    0Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    4y
    Originally posted by @Landon Bleau:
    Originally posted by @Collin Hays:

    I own 7 STRs in the Smokies and manage another 21.  Feel free to PM me with any questions.  It's a great area, but it's all about the deal.  I have seen folks getting ripped off over the last year.  Panic buying.

    I appreciate that!  How long ago did you buy your 7 STRs?  Would love to build up a few cabins there but at the price everything is currently at, seems like it'll take quite a while to have the funds.  

    I began buying cabins in the Smokies in 2005, and purchased my latest one a few months ago.  I don't look for prices to come down, on cabins or anything else.  Due to some trickery by the Fed and $ trillions of printed money put in circulation (stimulus), it isn't so much that everything has gone up in value, as the dollar is simply worth less.  Much less.

    Like anywhere else, you can get a good deal or a bad deal in the Smokies.  I have seen quite a few really rotten deals over the last year that concern me for new owners.  Most of this is caused by over-zealous realtors, and buyers are simply are not doing proper due diligence.  There is nothing magical about the Smokies that you can just grow money on a tree. 

    Proceed with optimism, but caution too.

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    4Reply
  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
    4y

    Someone just nabbed a recently finished new construction 4/4 pool cabin with a decent view that was listed for just under a million.  I wonder how much over asking that thing went for because I'm assuming that place will do $200k+ annually.

    Cosmic Vacations4.9172 Reviews
    WebsiteView Page
    0Reply
  • Ken Boone
    Investor · Greenville, SC · Member since 2015 · 1k+ posts · 1k+ votes
    4y

    What is crazy is that about 2 years ago I could have bought a 4 bed pool cabin new construction for $499k.   I saw one listed yesterday at 999,999 so i am thinking that might be the one you are talking about.  The prices are now in the range where a lot of them are over appraisal forcing cash deals or more money down.  It’s insane.  And yet they go pending in 24 to 48 hours when they pop.  Crazy man. 

    0Reply
  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
    4y
    Originally posted by @Ken Boone:

    What is crazy is that about 2 years ago I could have bought a 4 bed pool cabin new construction for $499k.   I saw one listed yesterday at 999,999 so i am thinking that might be the one you are talking about.  The prices are now in the range where a lot of them are over appraisal forcing cash deals or more money down.  It’s insane.  And yet they go pending in 24 to 48 hours when they pop.  Crazy man. 

    Yeah it's been like that for a while.  No chance on most offers unless you offer an appraisal gap with your offer.

    $999,999 is actually lower than most 4br pool cabins are selling for right now so I'm sure that one went over asking.  There was a 2br pool cabin for $900k recently.

    Cosmic Vacations4.9172 Reviews
    WebsiteView Page
    0Reply
  • John Carbone
    Realtor · Gatlinburg · Member since 2020 · 1k+ posts · 957 votes
    4y

    What is considered a good GRM in the smokies now? Have to imagine that revenues have "peaked" for likely the next decade. Demand will remain strong, but price appreciation seems to have very little left in the tank. I think 30-40k a year per bedroom is probably the new normal though, even with a slowdown in the economy - there is simply too much currency floating around.

    one thing to add, I've noticed a lot of bad information on a lot of properties in the area. Numerous cases I've seen square footage being overrepresented by anywhere from 300-500 square feet. Also, just at how crazy this is getting, I was informed a few weeks ago that a house was going to be listed for $1.1m in Gatlinburg (4 bedroom), and a week later when they went to market, the sellers changed their mind on price and listed it at $1.5m (waiting to see if it sells)

    0Reply
  • Ken Boone
    Investor · Greenville, SC · Member since 2015 · 1k+ posts · 1k+ votes
    4y

    @John Carbone Yea it is crazy.. so what do you think we should sell this for uh.. i think 1.1 million.. ok great.. no wait add 400k to it and let's see what happens!

    0Reply
  • Kyle Smith
    New to Real Estate · Member since 2020 · 220 posts · 107 votes
    4y

    It won’t appraise. I’ve heard the appraisers are toning it back some in the area. There are some corporations in the area that are buying up everything. Also, Saudis who are paying whatever just for tax write offs. 

    0Reply
  • John Carbone
    Realtor · Gatlinburg · Member since 2020 · 1k+ posts · 957 votes
    4y

    What percent of deals are cash offers in this environment? If it’s companies and foreign money I assume those are all cash offers with no appraisals?

    1Reply
  • Ken Boone
    Investor · Greenville, SC · Member since 2015 · 1k+ posts · 1k+ votes
    4y

    My builder is telling my 50% are cash on new construction 

    0Reply
  • Wilson Hunter
    Investor · Greenville, SC · Member since 2020 · 210 posts · 302 votes
    4y

    The market is tough if you're looking to min/max everything and utilize aggressive 10% down vacation or 15% investment loans. Like others are saying, there are cash offers everywhere, tons of very bad listings on the MLS that seem to still get sold fast, and a unique local economy that requires you to do some networking for contractors and cleaners if you don't want to get screwed. Also because of the nature of the market it can be tough to work with agents if you are trying to get elite level return, because you (reasonably) become a very difficult client compared to someone willing to scoop up some 8-9% gross return resort turnkey cabins with cash.

    But this describes me - I just did 10% down on my first purchase in the area with a high bar for ROI expectations and am now looking for my second purchase. First 60 days of bookings have exceeded my most optimistic projections because I underestimated how much thinking outside the box can help you in this market. While level 1 thinking is to just do the stock template cabin because it's so easy and it works, I'm already a believer that setting yourself apart is valuable, even in this old school market. I know I'm getting the newbie platform SEO boost, but still - Superhost is easily achievable at the first review period if you make a fairly average effort, and it's not actually that hard to separate yourself from the pack on Airbnb if you just do everything you need to be doing to run a good business

    Good luck hunting to everyone! Great to connect with a community of Smoky Mountain investors here.

    3Reply
  • Alvin L.
    Rental Property Investor · Long Island, NY · Member since 2018 · 18 posts · 6 votes
    4y
    Originally posted by @Wilson Hunter:

    The market is tough if you're looking to min/max everything and utilize aggressive 10% down vacation or 15% investment loans. Like others are saying, there are cash offers everywhere, tons of very bad listings on the MLS that seem to still get sold fast, and a unique local economy that requires you to do some networking for contractors and cleaners if you don't want to get screwed. Also because of the nature of the market it can be tough to work with agents if you are trying to get elite level return, because you (reasonably) become a very difficult client compared to someone willing to scoop up some 8-9% gross return resort turnkey cabins with cash.

    But this describes me - I just did 10% down on my first purchase in the area with a high bar for ROI expectations and am now looking for my second purchase. First 60 days of bookings have exceeded my most optimistic projections because I underestimated how much thinking outside the box can help you in this market. While level 1 thinking is to just do the stock template cabin because it's so easy and it works, I'm already a believer that setting yourself apart is valuable, even in this old school market. I know I'm getting the newbie platform SEO boost, but still - Superhost is easily achievable at the first review period if you make a fairly average effort, and it's not actually that hard to separate yourself from the pack on Airbnb if you just do everything you need to be doing to run a good business

    Good luck hunting to everyone! Great to connect with a community of Smoky Mountain investors here.

     What are you doing to make yourself stand out more? I'm closing on my first cabin soon and would love to hear your insight

    0Reply
  • Wilson Hunter
    Investor · Greenville, SC · Member since 2020 · 210 posts · 302 votes
    4y
    Originally posted by @Alvin L.:
    Originally posted by @Wilson Hunter:

    The market is tough if you're looking to min/max everything and utilize aggressive 10% down vacation or 15% investment loans. Like others are saying, there are cash offers everywhere, tons of very bad listings on the MLS that seem to still get sold fast, and a unique local economy that requires you to do some networking for contractors and cleaners if you don't want to get screwed. Also because of the nature of the market it can be tough to work with agents if you are trying to get elite level return, because you (reasonably) become a very difficult client compared to someone willing to scoop up some 8-9% gross return resort turnkey cabins with cash.

    But this describes me - I just did 10% down on my first purchase in the area with a high bar for ROI expectations and am now looking for my second purchase. First 60 days of bookings have exceeded my most optimistic projections because I underestimated how much thinking outside the box can help you in this market. While level 1 thinking is to just do the stock template cabin because it's so easy and it works, I'm already a believer that setting yourself apart is valuable, even in this old school market. I know I'm getting the newbie platform SEO boost, but still - Superhost is easily achievable at the first review period if you make a fairly average effort, and it's not actually that hard to separate yourself from the pack on Airbnb if you just do everything you need to be doing to run a good business

    Good luck hunting to everyone! Great to connect with a community of Smoky Mountain investors here.

     What are you doing to make yourself stand out more? I'm closing on my first cabin soon and would love to hear your insight 

    When we bought the cabin it would have been possible to immediately put it on Airbnb as-is. Instead we decided to change the style from “just another cabin” with the typical bear quilts, deer antlers, and bulky brown leather furniture to something a bit more upscale. We also did new carpet and stonework on the fireplace.

    My perception is that the higher end look and feel justifies our increase in price and also causes us to stand out. We’ll see how it goes, but so far I’m pleased with the results.

    4Reply
  • John Majoris
    Investor · Clinton, NJ · Member since 2012 · 118 posts · 70 votes
    4y

    "My perception is that the higher end look and feel justifies our increase in price and also causes us to stand out. We’ll see how it goes, but so far I’m pleased with the results."

    I'm a big fan of that thought process Wilson... 

    Not only will you stand out, you'll receive a higher level of repeat guests! Which brings up a question that I'll post...

    0Reply
  • Keleisha Carter
    Investor · Tampa · Member since 2018 · 289 posts · 107 votes
    4y

    @John Underwood Hi John, apart from the MLS, how are you finfing your deals?

    0Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    4y
    Originally posted by @Keleisha Carter:

    @John Underwood Hi John, apart from the MLS, how are you finfing your deals?

     Zillow.com 

    1Reply
  • Patrick M.
    Investor · Chatham County, NC · Member since 2014 · 89 posts · 20 votes
    4y

    Glad to see this thread. I've just started researching the Smokies for STR. I'm trying to understand the geography and the attractiveness of particular locales. Is it better to be near the GSM National Park? To Dollywood? Is elevation and view more important than how close you are to key attractions? In cities people want to be downtown where all the action is, at the coast people want to be beachfront. It seems more complicated here. If anybody has insights on these questions or submarkets in the Sevierville/Pigeo Forge/Gatlinburg area, I'd welcome your perspective!

    1Reply
  • Andrew Tefertiller
    Member since 2019 · 4 posts · 3 votes
    4y

    I purchased a 3 bed /3 bath in 2003 in the area and sold it a couple of years later in 2005. It had an incredible view of the smokies. Today it would have been worth about 4 times what I sold it for and would have been a great STR.. however sometime after I sold the wildfires destroyed a lot of homes and this was one of them. Hard to believe what has happened to the prices over 17 years... Today the lot is worth almost what I originally paid for the entire house and it seems the homes get rebuilt.

    1Reply
  • Patrick M.
    Investor · Chatham County, NC · Member since 2014 · 89 posts · 20 votes
    4y

    Another question for this group - how is high-speed internet availability in the Smokies? Is it consistent 100 MBps all around, or does one need to be careful in making sure you purchase a cabin that has high-speed internet access? What's the best way to ensure your property has high-speed internet ahead of buying? Just check the Comcast/Xfinity website, etc? Do you see people/families coming for "work-cations" where someone maybe works 2-3 days of a week and hangs out with family for the rest? 

    0Reply
  • Ken Boone
    Investor · Greenville, SC · Member since 2015 · 1k+ posts · 1k+ votes
    4y

    You basically have about 4 choices. Xfinity, spectrum, a few smaller wireless providers or nothing.  So I would have your realtor verify what the options are before you purchase if that is a concern. I have xfinity at a few of my places and one of them has a smaller wireless provided.  Haven’t had significant issues with any of them.  

    1Reply
  • Wilson Hunter
    Investor · Greenville, SC · Member since 2020 · 210 posts · 302 votes
    4y
    Originally posted by @Patrick M.:

    Another question for this group - how is high-speed internet availability in the Smokies? Is it consistent 100 MBps all around, or does one need to be careful in making sure you purchase a cabin that has high-speed internet access? What's the best way to ensure your property has high-speed internet ahead of buying? Just check the Comcast/Xfinity website, etc? Do you see people/families coming for "work-cations" where someone maybe works 2-3 days of a week and hangs out with family for the rest? 

    100+ mbps internet is not necessary to be successful in the Smokies. I know of 1BR no-internet cabins grossing $50k-$65k. 

    In general it is easier to manage a cabin with some form of internet so you have have a wifi-enabled security system (like Blink cameras), and guests like basic internet functionality for phones. But I don’t think 100+ mbps high speed is that much better than Hollernet for maximizing rents and occupancy.

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free