Is Sevierville area good area to own vacation rental? (Pigeon Forge: for sale, rentals)

[pbiancardi]

I am looking for a place to buy a nice vacation property that (hopefully) pays for itself in short term rentals that my family can stay a few weeks out of the year (and as my wife and I get older we can spend more time at). Was originally looking in Florida but that seems to be a way too competitive market to make something like that work (especially with a mortgage). Not trying to get rich or make money, just find something that covers its own costs (mortgage, cleaning, mgmt, etc.).

Is something like this viable in the Sevierville area? I am just shopping online and there seems to be some mountain cabins for under $150,000.00 that appear to be nice quiet vacation spots with good rental history, is this correct? Are these actual mountain retreats or just another crowded vacation spot? Are these quality homes or just cheap builds? Any info or advice about the area is appreciated, thank you very much.

Example of what I am talking about -

2148 Little Valley Rd, Sevierville, TN 37862 is For Sale - Zillow

[southernnaturelover]

Many cabins have close neighbors even though the photos don't show it. Some also have very steep driveways with little parking, which again, the photos won't show. Bookings can vary, you may have rental income for the entire month of October, a few in November, and then none in February and March. I wouldn't depend on the rental income to pay the mortgage, just consider it gravy money when you get it.

[Trevor92]

Another thing you may consider is water source. Many cabins are on well water with a septic tank. That usually means fewer rentals, more gunk in your washing machine, jet tub, etc. It's something we have to look closely at when we book because of a family member that breaks out in some sort of rash when exposed to well water in the area. In general, we tend to have better luck with Gatlinburg or Sevierville than Pigeon Forge in my limited experience.

[kamoshika]

This similar thread is a few years old but has some good info & things to consider:
https://www.city-data.com/forum/knoxv...yone-have.html

FWIW, I wouldn't buy a place that doesn't offer a semi-decent view of the mountains. Many people rent a cabin in the Smokies with the idea that they can go out on the front porch and enjoy a nice view, and if you can't offer that with your cabin it's going to be that much tougher to rent.

Also, be sure to use Google Maps' street, satellite & terrain views to get a good feel for the lay of the land (and the housing density).

[Barking Spider]

That boat sailed several years ago.

[southernnaturelover]

Originally Posted by Barking Spider

That boat sailed several years ago.

I think it's a good time to buy a vacation home, if that's what it's going to be, but not necessarily to use as rental property.

[pbiancardi]

Where to shop in the area for vacation (non-rental) cabin? What price range would I have to do to get something decent (doesnt need to be huge)?

[Barking Spider]

There are lots of cabins for sale in the Gatlinburg area, also Wears Valley, Townsend, Walland, LOTS. They vary in size, location, views, access, and quality. Some are on wells, some do not have all that great of water (smells like sulphur).
The quality of construction varies a lot too, some are unsafe pieces of junk, and others are high quality.

I've been to some cabins that I would rather ride in an upside down, backwards roller coaster, blindfolded, than drive down the driveway. Some have views that can make you want to never leave. Others have views of some trees, and the side of a mountain.

I have been in some that I have to wonder how anyone gets to it in the winter. There are trade offs for everything, but you can figure that if the price is really low, there is a reason for it.

[Badbird2000]

My in-laws have actually purchased two condo's in the past couple of years. One is behind the Apple Barn, and the other right down the road in front of the Zorb rental place. Both 2-bed/2 bath, around 1200 sq.ft. They do a pretty decent amount of rentals on both throughout the year.

[hiknapster]

Originally Posted by Badbird2000

My in-laws have actually purchased two condo's in the past couple of years. One is behind the Apple Barn, and the other right down the road in front of the Zorb rental place. Both 2-bed/2 bath, around 1200 sq.ft. They do a pretty decent amount of rentals on both throughout the year.

"Pretty decent amount of rentals" and "paying for itself" are two very, very different things, usually. In Sevier County, the chances of both being the same are probably nil.

It doesn't just come down to how many rentals you get. You have to think about rental management. Everyone, unless they live close by and have lots of time, has to use that service and it takes an enormous chunk of your profit, if not all, and if you have one to begin with.

We get this question over and over and it's always the same. Even when we were in the midst of the housing boom, but there was half of the rental inventory that we have now, I knew someone that couldn't come close to making a fraction of what she paid for it.