Smoky Mountains Cabin Rental Investment?
just spent new years eve in Gattlinburg Tenn. Overwhelmed at dozens of log cabins being built and priced 125k up. Developers boast huge 12 % appreciation last 10 years. Rental incomes more than make payments-anybody done any research or number crunching or had experiance in Smokys? I thought Tenn. retirment real estate deprciated.
My Wife and I spent several days over the holidays. I noticed a lot of rental companies and every other chalet was For Rent or empty. It just snowed and the roads were closed in the park. It was easy to tell the occupancy.
If you are going to build and lease, Make sure you have it in writing the percentage of yearly occupancy and make the builder/leasing company accountable. I just wonder if it 's overbuilt in the area for the amount of visitors? If they guarantee the occupancy rate and the numbers work, Than it's a good investment.
thanks for responding- my gut tells me it is a tourist trap-based on the carnival atmosphere-but all the big chain restaurants and stores are there-12 million visitors a year-how can I find out the truth about the area-maybee state law requires disclosure of rental records-Told years ago to actually "work" the cash register before buying store-due to manipulation of books between stores owned by same person-to make store for sale look profitable.
Quickest way to get a snapshot is to call several different RE Brokers in the area to verify some numbers. Just like residential, you need comps, and you need accurate management and expenses.
Good Luck,
Shawn(OH)
thanks very much
i live just out side of the smokies go there about 8 times a year. it is very seasonal. from about the end of dec. until about may it is a ghost town . i know being a locale i go hiking from dec to may because there is no one there and the rates are rock bottom. so figure a 4 or 5 month no rental income to be safe.........km
As Ron White would say, That's good information to have right there. That's probably the best response you could have asked for.
Dear Medusa,
I wish I had invested in Pigeon Forge about 20 years ago. Now all of that good flat land is really built up. Sevierville was another good location- but I'm not sure about now.
I used to like Gatlinburg, but I don't like it any more. It seems a little "run down" to me. We made the mistake of going during the tourist season a few years ago and it was bumper to bumper traffic in Cades Cove. It's more out in the country with those country problems like whole bear families dumspter diving. (Our motel rooms were next door to a really good barbecue place- and their dumspter) You kind of have to watch out for the bears.
I don't think I would invest there. There are too many good opportunities in other places.
Cordially,
Alice