Have you been looking for a unique and exciting way to invest and have some fun while doing it?
Many people aren’t aware of investing in overnight rental units, and especially aren’t familiar with Pigeon Forge and Gatlinburg’s investment opportunities. What you may not know is there are many advantages and opportunities to make money in our small little area.
Here are some of the top reasons!
- We realize 10 to 15 million visitors annually
- Approximately 8.5-month long strong tourist season
- Working to increase it to 12 strong months by adding in new attractions and event centers
- We are within a 10.5-hour drive of a large portion of the population in the United States.
- Results in our area being great for corporate events, family reunions, weddings, family vacations, and weekend getaways
I like to call it roughing it without the roughness! Come stay in a cabin and see what all the fuss is about!
We are jam packed full of excitement too!
- Dolly Splash Country
- Dolly’s Stampede
- Ober Gatlinburg
- Tons of Ripley attractions, dinner theaters out the wazoo, tons of mini golf venues, a movie theater
- Dave & Busters
- And so much more!
Let’s not forget the Great Smoky Mountains National park. This is the #1 visited national park and offers tons of outdoor activities such as hiking, sightseeing, relaxing, picnicking, and more. Don’t miss the changes of the leaves in October. It is one of the most beautiful sights you will ever see!
DO I HAVE YOUR ATTENTION YET?
Most cabins are privately owned by persons such as you. The following financial analysis below is an example of one the cabins that I compiled and the projections it had from a local rental company (these figures are estimated figures and are not guaranteed or promised). The rental management split is based on a 70/30 split with the owner retaining 70%.
- Log Cabin
- 4 bed 3 bath
- 2185 SF
- Gorgeous Mountain View
- Utilities Approximated
- Appreciation Acceleration Not Considered
- Sold 9-17-2018 for $397,500
Results for each cabin vary. These results are just an example of what a cabin could produce and are in no way guaranteed or promised. An analysis on each unit can be performed to judge its individual potential. At no time are any results guaranteed.
Financial Analysis Recap
- $409,900 – Listed Price
- 80% Financing - $318,000
- 5.45% APR (avg rate at time of post)
- $2,845 estimated monthly expenses (weighted heavy)
- $58,000 to $62,000 conservative annual revenue projections
- $40,600 to $43,400 projected potential net annual revenue
- 7% to 7.75% cap rate (Rate of Return does not include the monthly mortgage payment. It is calculated in the equation as the purchase price.)
The table above is a snapshot of the sales activity for the area since 2013. As you can see we’ve realized substantial equity acceleration growth and the potential is still there. Since 2013, the Sevier County area has realized a minimum of 5.5% growth rate. This is a strong growth rate and we anticipate seeing positive trends in the years to come. The financial analysis provided above does not take any equity acceleration into account. It simply shows what a cabin could do on a yearly basis. If you decide to sell your unit, this equity growth rate shows how well we’ve performed in the previous years.
Sevier County is known to attract many investors - residential/overnight rental and commercial and we don't see that changing anytime soon.
I know I’ve peaked your interest! All you have to do is contact me and we can get started on your new journey into overnight cabin rental ownership.
Call me today and let's get started on your new journey!