All Forum Posts by: Chuck Kramer

Bears are here and around, but they are all over the SouthEast -- even in downtown Knoxville. There has been a rash of bears on the UT campus lately.We have black bears all over central Florida too.

Its just common sense stuff. Don't approach, definitely stay as far as possible from cubs, don't leave food out. 

Demand is high, qualified contractors are few and far between. There is more than plenty of work. In addition to homes and even entire developments, there are a number of BIG projects coming to the area. Locally, they are leery of outsiders and many “carpetbaggers” came after the wildfires in 2016, ripping a lot of people off.

Your Greenville experience is typical in E Tennessee. I am not an expert on the construction industry here, but seems to me the best way to get local credibility is to get on board with one of the better local builders that has a good rep. Do a little time to get accepted, then move out on your own being able to mention that experience.

In the 3 cities here, they do require licenses. Not sure about the county.

Like any wild animal, get rid of the food source and the woodpeckers will go away. The spraying will help, but is not an end-all solution. Another tactic is to put up bird houses and feeders. If you use suet cakes cleaners can easily replace them. This will attract more birds, which will eat and deter carpenter bees (as well as other insects), and also present competition for the woodpeckers. Jays are especially effective as they are highly territorial and will chase woodpeckers away.

That is about the best you can do. Welcome to the wilderness.

Its also a good idea to look for Facebook groups of local STR owners. They can also be great resources for all kinds of info and referrals.

Most will not, but some local lenders more familiar with the market are most likely to do that. Tennessee State bank, SmartBank, Mountain Commerce, and First Tennessee, and Sevier County Bank are known to factor incoming revenue.

@Account Closed my numbers come from 3 places; we are interviewing builders to put up 2 homes on lots we own and that is the range we have in the 4 proposals so far. We also own a restaurant that is very popular with locals and close to the county government buildings and we get several builders in for breakfast a few days every week so talk with them a lot when in town. Lastly, it helps to have a relative work in a city’s permit and planning office.

Just line up your financing, @Avery Carl has a good source for that too,  ahead of time and be prepared to move when you see something. Dont be put off by something already under contract. The last 2 we bought were and we put in backup offers and got them.

Hard to find a property in that price range and getting harder every day. Most "rent ready" properties are well over $220 sq ft and many are at or over $300 sq ft now! You can build for $185-225 sq ft, depending on exact location and such, but builders are booked way out with most better ones looking at 1.5-2 years ahead.

Don't mean to discourage you in any way, just being realistic. @Avery Carl can help you out with scoping properties.

Being close is a plus, but not required. You do need a good team of cleaner/handyman and a list of solid vendors (many of us can assist with that or point you to good resources).

Keep one thing in mind though, and it is important. The STR market in Sevier County, and especially its customers, are unlike anywhere else in the USA. Many have come in with experience or advice from people gained elsewhere and gotten their behinds kicked black and blue. Pass on the "be successful with airbnb" or "10 things you need in your vacation rental" as they just don't apply. This is a mature market and the clientele is highly varied.

Before buying, make SURE you do your due diligence. In the last month or so I have run into a investors who ran here to the Smokies after hearing about our great returns and grabbed the first things that looked good, using agents who also don't really understand self-managed STRs. 

That includes 3 who bought cabins in non-rental areas, another one who bought one in the City of Gatlinburg that was *never* going to pass inspection, and at least 3 others that didn't know they needed permits and business licenses until they got cease and desist letters. Another bought a new 5-bedroom home just to find that turning it into a rental required an $18K sprinkler system and a number of other changes. Oh, then there was the woman who bought a great looking cabin that turned out to be next door to a guy that raised and trained hunting dogs.

Two words; DUE DILIGENCE all around.

You can make it work and Avery can help. Reach out to her.

What Lucas said. Even at $110, it has to be a GOOD cleaner that is reliable. That is the cost of being an out of town investor competing with locals who clean their own places.

@Doreen M ODonovan    Welcome to the area and congrats on the property acquisition and getting it up and running!

You can have up to 10 FHA loans and they are as little as 3%. Shop around. Some brokers will only tell you what they need to get an EASY loan, one in their best interest and not always yours.