Vacation Rental - TN

2 Replies

Investment Info:

Single-family residence buy & hold investment in Sevierville.

Purchase price: $203,000
Cash invested: $40,000

Vacation Rental Property - Cabin. Purchased in Dec 2012 and now in the process of selling.

What made you interested in investing in this type of deal?

We had visited the Smoky Mountains and loved the park and thought the area would make a great place for a short term rental and allowed us to vacation there a couple times a year.

How did you find this deal and how did you negotiate it?

One of the local realtors had a ton of information about the area and I watched his site for about a year before contacting him. The property was a foreclosure so the negotiation was with a bank. During a survey, we found out that part of our driveway was on the adjacent lot which a different bank held. The bank we were negotiating with asked for an easement and the other bank said no so we wound up buying the additional lot and splitting the cost.

How did you finance this deal?

20% down and as a short term rental.

How did you add value to the deal?

buying the adjacent lot has provided more seclusion and the cabin sits on about 2 acres now.

What was the outcome?

We've owned the cabin for almost 9 years and have utilized a management company to run the every day business. It's allowed us to vacation there 3 times per year with others paying down the mortgage. We are now in the process of selling as values have appreciated significantly.

Lessons learned? Challenges?

Short term renters don't treat your property very well. Very frustrating at times to see the damage they do. Holes in drywall, ripped furniture, stolen items.

Bridging between Crypto and Real Estate
Get ready to buy your next property using Crypto
Using crypto to own property, leverage #CTCN in buying your next home and more
Time to buy property

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you