Updated almost 3 years ago on . Most recent reply
another STR cabin in Maggie Valley!
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $365,000
Cash invested: $90,000
Charming Log cabin in the heart of Maggie Valley. Picturesque setting at the end of a quiet street, unobstructed year-round wide open mountain views. The cabin features hickory hard wood floors and wood ceilings and a stone fireplace. Relax on the wrap around porch and watch the lightning bugs in the meadow with the mountains as a backdrop, simply beautiful.
You will enjoy all the comforts of home at the Smoky Bear Cabin. Wi-Fi Internet with no data caps and 200 MBPS speed, cable TV, gas fireplace. The kitchen is fully stocked with all the essentials, super comfy furniture and beds, and the cleanest cabin you will find.
Simply an awesome location in Maggie Valley, the cabin is close to everything. You have long range unobstructed views with easy year-round access with all paved roads. No steep treacherous roads to worry about in winter time.
Just 5 minutes to the Blue Ridge Parkway.
20 minutes to Harrah's Casino
30 minutes to Great Smoky Mountain National Park
30 minutes to Asheville
10 minutes to Waynesville
What made you interested in investing in this type of deal?
What made this deal attractive to me was the rental history as well as the review history it came with.
How did you find this deal and how did you negotiate it?
My long-time housekeeper actually brought this deal to me. She has cleaned this cabin for years and when the sellers mentioned to her they wanted to sell the cabin she immediately told. Ran the numbers, worked directly with the seller and closed the deal within 30 days. Gave my housekeeper $1,000 bonus for connecting us. It was a win-win for the sellers, myself and my housekeeper.
How did you finance this deal?
Financed the deal with a standard 30-year fixed mortgage at 7% OUCH.
That almost killed the deal because I didn't want to finance a property at 7% but finally got out of my head and closed the deal. If the rates go up more I am locked in at 7% and if they fall I will just refi...it's really a win-win.
How did you add value to the deal?
It was already an STR and I was able to provide the seller with an easy transaction and they didn't have to stop renting it during the sales process. I actually closed on the house with a STR renter in the house. Walked away from the closing table with no keys because the guests had them :-)
What was the outcome?
Purchased a great log cabin and was able to import the 150 VRBO reviews into my new listing!!! Got a great cabin at a fair price with what I think is a high interest rate but the numbers still work. If they the numbers work, the work.
Lessons learned? Challenges?
I discussed with the seller about seller financing the deal. They showed interest but they were 75 years old and were advised not to enter into that kind of a deal at their age.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I didn't work with an agent on this deal, but when I do I always use Ellen Sither of Beverly Hanks Realtors. She has assisted me since 2014 with lots of transactions and she is fantastic. Have to give her a shot out.
