All Forum Posts by: Matthew Peterson

Investment Info:

Single-family residence buy & hold investment in Pigeon Forge.

Purchase price: $205,900
Cash invested: $150,000
Sale price: $953,700

843 Lloyd Huskey Rd Pigeon Forge Tn. House in Pigeon Forge, converted into cabin. Doubled square feet, gutted, renovated. Rented as STR for 2 years now under contract for sale. Before and After Pics attached.

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

Was Buying STR's in smokies. Bought this house, but figured it would do better as a "cabin". Rented as STR and did well for 1.5 yrs as a regular house near the pigeon forge strip. After renovation done, put it on market to sell. Contract in 4 hours over asking.

How did you finance this deal?

20% down, conventional 30 yr mortgage

How did you add value to the deal?

Complete exterior renovation to match the cabin look of the area.

What was the outcome?

$600K net gain.

@Jeremy Davis sometimes when you hit a road block and turn right, you run right off into a ditch..so just be careful. Roadblocks can be your friend and give reason to pause or exhibit patience. I’ve been burned bad in real estate because I didn’t heed the roadblocks that were screaming at me (luckily it was over a 15 years ago and I’ve recovered), but, it’s still a venture that can cause great freedom or great pain.

I will give the kid this, at least he is enthusiastic. According to his LinkedIn profile, he graduated high school last year! I sure as heck didn't have a LinkedIn profile at 18 years old. I was too busy partying, drinking and getting fired from every job I had because I was lazy or hungover! I wish I had been on a site like this at his age!

Closed on 2 STR Properties two weeks ago, one self managed rental, one a second home by the seller, so no issues with those...but, just grabbed a third today which is managed by a large property management company in gatlinburg. Property management company requires 90 day notice of cancelling the contract with them, but am I, as the new owner, bound to that contract?

I have read various documents by states on STR Agreements and honoring current reservations, but haven't found much detailing if a change of ownership occurs.

And sorry, couldn’t figure out how to edit headline on my phone, so that’s why it’s a little squirrelly...fat fingers and hit post too soon. 

@Lesley Resnick I was born and raised in Jacksonville! I decided to upgrade from bad street names to bad city names...

I now reside in Cumming, Ga. I cringe every time I give my address over the phone to someone and they say “can you please repeat that?”

@Greg Dickerson Thanks Greg. I appreciate the info.

For those who have purchased hotels or apartment complexes. What’s the average liquid capital needed for something that size? Curiosity question mainly to satisfy my wonder of whether or not I want to venture down that road.

@Jay Hinrichs that’s good to hear! My guy at chase that I work with, said they are watching companies like Quicken loans and some others very carefully. Talk at Chase of companies like that not making it through this.

On a different note, can you tell me about your managed fund that you mention in your profile. Interested to learn more about that and what your returns are.

@Jay Hinrichs Those are some good returns for sure!

Yeah my folks thin theirs out every few years if they need some funds. Everything has risk I guess, they got bark beetles once, which was a nightmare. The department of Ag showed up, Weyerhaeuser, International Paper, Temple Inland, literally everyone, wanting to know how bad the beetle issue was on my parents land, because they all had a couple hundred thousand acres surrounding my folks acreage.

Sorry to sidetrack the thread by the way!

@Jay Hinrichs Interesting you started with timber. My family was in the timber and turpentine business down in north Florida since the early 1900’s.

My parents still have quite a bit of timber in Jasper Florida area but it’s just too slow of an investment for my taste. But, my entire life they would always say, “you need to get out of that stock market and buy pine !” They have big landscape companies in GA, SC and TN come down and rake the straw between the tree lines, bail it up and haul it back up for resale to Home Depot, Lowes, and whoever else wants it. My folks love timber..still, and they’re in their 80’s. I think they would rather have timber than cash in the bank.