All Forum Posts by: Corbin Loveless

@Tanner Sandoval I'm a local agent in the Knoxville area but sell primarily in the Smoky Mtns. A good friend of mine runs an STR property management company in Knoxville and has shared with me the particulars of STR regulations. Send me a DM, and would be happy to explain over the phone- too much to type!

I would talk with a lender you trust and can have a candid conversation about your investing (it's their job to stay up on things and know the rules).

I'm an investor/realtor and not an expert in lending regulations. That said, in conversations I've had with banks and lenders, a significant change like a career change or relocating means that you have a good reason for renting your property. Things change, life happens, and people who buy homes with the honest intent to live in them for many years don't always have that choice.

Underwrite your deal conservatively. If you think 2020-2021 data is an outlier, scrap it. Use 2017-2018 rent data in the Smokies and underwrite your deal with those numbers. 

People will continue to visit the Smokies and rent cabins. Use the data before the boom. Below are GSMNP visits by year. You can see the increase in visitors to the park in the data below, 11-12MM is what I see before COVID and the craze of cabin STR investing (15-25% reduction). I'm not saying park data translates perfectly to rent data (occupancy or nightly rate), I'm merely using the park data as an example.

Stats Report Viewer (nps.gov)

2010      9,463,538

2011      9,008,830

2012      9,685,829

2013      9,354,695

2014      10,099,276

2015      10,712,674

2016      11,312,786

2017      11,338,893

2018      11,421,200

2019      12,547,743

2020      12,095,720

2021      14,161,548

While I'm sure all of the comments above are valid and accurate, the other thing to consider is the rapid change in the market landscape. 

I wouldn't characterize the market as a seller's market any longer. Obviously, every market is different, and some markets will remain white-hot due to conditions in that area. 

As the market changes, expectations have to change as well. Managing expectations and putting together the right pricing strategy for the area/market is a critical skill for listing agents and your agent should be helping you put together the right strategy! 

@Cole Simpson now that we have Q1 data, do you know if the forecasts for growth were accurate? (Forecast vs Actual?)

I would think that the top STR investment markets would be places that a ton of people travel to year after year. These seem pretty niche unless there is development in these areas that I'm not aware of.

@James Wachob haha you're exactly right, look forward to connecting!

@James Wachob I don't know if you remember this but we actually met in a burned-down house on Ivy road in 38117 two years ago! Going to shoot you a PM to hear more about your success!

Purchasing real estate at retail prices and renting them for cash flow is unheard of in a lot of markets. That's why people flock to cash-flowing cities like Memphis, TN and others. 

The key to investing is purchasing the property under market value. If you have the deal, you can do anything you want. You can force the appreciation through property improvements then flip, BRRR, long-term rent, short-term rent, etc.

I think the right question is- how do you find a deal in 2022? I'd love to hear everyone's thoughts on that one!

@Ryan Hampton make sure your project will cash flow with the additional interest for financing your down payment. If you're investing based on cash flow and have confidence in your future rental demand, that will help mitigate risk. Don't let FOMO draw you into a deal that needs wishful thinking to make the numbers work. Be conservative. Tether yourself to sound investing criteria. Develop local relationships with people who are winning- collaborate and learn!