Buying A Log Cabin In Gatlinburg...

...or any other area of Sevier County like Pigeon Forge, Sevierville, Wears Valley, etc. Is it still a good investment? Well that depends on what you are trying to accomplish.  If you are thinking of jumping in and riding some appreciation wave over the next 12-24 months and then selling it, probably not the greatest decision. If you are looking for more of a long term investment that will steadily provide you with income in an effort to build equity, then yes. 

How Can I Make Money With These Management Companies Charging So Much?

Well, you have to do some research. Interview many of them. Do not just enter into an agreement with the first recommendation you are given. There are dozens and dozens of management companies that are well known and manage a large number of cabins in the area and even more smaller companies that aren't so well known. Many of the large companies have been getting more and more aggressive with their terms and splits.  Some have gone as low as 15% with fixed costs.  That is really low for the area.  Those are beach numbers. 

Some of our clients that have the most success are self managing their cabins. This sounds very daunting and over-whelming at first but just about anyone can do it. We have client that is an Anesthesiologist and works crazy hours. He also self manages two cabins. He does amazing with it. Generates income numbers that surpass what most management companies can generate. IT CAN BE DONE. There are other options like Evolve that offer service for 10%. We have several clients that have done very well with then as well. 

Will Prices Continue To Rise? 

The last two years have been crazy.  The market and values have increased exponentially. We have seen increases of over 25% in certain areas/resorts. Some that are more than that and of course some that are far less than that. Overall, it has risen quite a bit. The last 3-4 months have slowed quite a bit though. Properties are sitting on the market longer and longer because they are just over priced or not making financial sense from an investor's stand point.  With the current pricing and values, it is even more important to be entertaining some of the self managed options or looking hard at some of the aggressive companies offering very competitive rates. The numbers can still work and in some cases they can still be quite attractive. It's all about finding the RIGHT pieces to the puzzle and putting them together.  Acting arbitrarily with any aspect of this process, or using an agent that is not experienced or educated at a high level with these types of investments is very dangerous and can cost you in the end. Let us help guide you through the process. Cabins is what we do. All day, every day.