All Forum Posts by: Ruth Blue

We had similar situation with 3 cabins we manage over the same time frame. It is the PM responsibility to get someone out to turn water off at least. In Gatlinburg the Utility company had an emergency number set up for this exact thing. They went to 2 of our managed cabins and turned the water off at the street! @Rhonda Blue

Check your contract and talk to an attorney.

Sorry this happened to you!

We have sold a few this year where the buyers will make money. We actually just closed on one ourselves BUT... It was not a full blown cabin but a 2/2 home in Sevierville with no restrictions. We closed put in a privacy fence and hot tub then we are making excellent numbers as a vacation rental. We were worried that guests would not rent a house and planned to Long term rental if necessary but so far so good. Guests seem to love the Non cabin vibe and we are just 5 minutes from Dollywood and the parkway. 220k with 20% down. Definitely have to be much more creative in this market to make returns. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $220,000
Cash invested: $52,000

Contributors:
Rhonda Blue

Short Term Rental in the town of Sevierville. Just a little something different.
We always ask ASHLEY LANGWORTHY to do our home inspections. She does walk thru videos and lots of details.

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

Purchase Price and income potential

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

Found it while doing my daily search for area properties.

How did you finance this deal?

80% loan cash down payment

How did you add value to the deal?

Added hot tub and privacy fence.

What was the outcome?

It is listed and renting very very well.

Lessons learned? Challenges?

When market is extremely high it is ok to be creative in order to make good return on investment.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Ashley Langworthy with Bright Images Home Inspection
Blue Family Realty

Hi Joshua,

I think a business degree is very helpful as a back-drop for investing. Anyone can invest but it is helpful to have knowledge of Business Management & how to handle your own finances when investing! If he is planning on being a Real estate agent, his degree will not matter to possible clients in the future but if he is planning to invest for himself, any career field can be good. 

Hi All,

I'm curious what your strategy has been to stay as well rented as possible during this change in guest demand? I know we have been making an effort in almost every way possible, including: Listing updates, Property updates, becoming as desirable as possible to the Booking Website Algorithms & updating price points to where we think will bring in renters.  Of course private bookings are a great option as well through social media or friends + family but the focus on maximizing the rental potential at the moment has been quite an adventure.  

I'd love to hear your thoughts and what you have done to shift your strategy with our every changing market!

Ruth

@Arthur Means

We own in Gatlinburg Pigeon Forge area and are one of the longest owners here for the Smokies. I agree with the last few posters.

The prices right now are so hard to impossible to make real reliable consistent year after years returns. Even with a zillion amenities if gas prices keep going up and food prices something has to give. Keep your eyes peeled. The next few years.

This resembles the market in Orange County. Investors were buying with monthly losses gambling on future appreciation. This area is getting closer and closer to being that type of market.

@Nicholas Arzner

Hi Nicholas

We have a few cabins we now manage that came over from Evolve so I'm speaking 3rd party. They are an online service that coordinates with local venders. You would be paying them 10% for what you can easily do yourself if a problem arises. My advice is to find a local PM that services the area and negotiate a price that works for you both based on services offered. There are some pMs that may be more flexible. That being said I don't presume to know your circumstance and as evidence My mom has her out of state properties with a local PM for 10%. They are Long term rentals. Good luck whatever you decide.

@Tanya Ansari

I can offer suggestions in east TN. There are multi family properties that pop up here frequently. Especially off shoot areas not always thought of but quality rentals

@Tanisha E.

I am PM and owner of STR as well. Red flags are managers who do not own rentals in the market the are managing. I want them to have skin in the game and be able to see both sides. Renter and owners.

We communicate with owners and guests by texts, emails, phone calls.

It always surprises me how many RE brokers agents, managers and advisors do not actually own rentals yet claim to know the market.

@Omar Luna

Hi Omar

I understand your want to pay off before buying and moving forward with new investment. Have you read Robert Kiyosaki 'Rich Dad Poor Dad'. It was eye opening for me on how to use other people's money to pay for the lifestyle I wanted to live. Your in an amazing position having so much equity in your home. I wish you luck.