Searching for a cabin in the Smokies can be a challenge, especially if you or your agent does not know what to look for in a truly great cabin. While it may seem simple enough, the factors that determine the whys behind what a property is worth, could be worth, and will be worth are wildly complicated depending upon the exact location and orientation of the property. Navigating this requires experience and specialization, which Theresa Norman is happy to provide her clients.
Theresa’s Simple Cabin Tips
Get the Data
If you’re looking for a cabin in the Smokies, it is highly unlikely that you will find one in which you will be the first and only owner; instead, you will probably be shown or find many rental properties that already have a stream of rental clients lined up and in the books. This means that there is a mountain of data to look through if you know how to get it and interpret it. Comparing this data to the price of the cabin can make or break your investment. You should never buy a cabin that doesn’t pay for itself (and then some) with a steady stream of rental income, which is why data is so important.
Become A Property Manager
Whether you’re a seasoned property manager in your hometown or hoping for a vacation home that can pay for itself when you’re not using it, you’ll need local insight and guidance to become a Smoky Mountain property manager. Even if you never plan on operating the day-to-day operations of your investment, leaving that instead to a true property manager, it is important to think like one during the buying process. Analyze the numbers, imagine the operating costs, and decide whether or not the potential upsides you’ve observed from the data paint a compelling investment picture.
Analyze Potential ROI
While your cabin the Smokies will likely hold much or all of its value (or even increase) while you own it, it is important to make money in excess of your expenses. This is a bit more complicated than you may imagine, largely because of costs and opportunities that you may not consider right away. Expect to inquire about, and receive data for, the following:
- HOA fees
- Average electric, gas, cable, trash, etc. costs
- Sewer and waste access, costs, and guest accommodations therein
- Type of water access (direct, well, etc.)
- Best and worst month expectations
These points will give you a great idea of the costs side of your potential ROI, but the other thing to consider is opportunity; ask yourself and your agent the following: Can any of the following be upgraded for relatively low cost, is there room for improvement in the home that will add value, and is the area trending upward or downward (and why)? These questions, and more based upon specific instances, can give you as the prospective buyer a clear view of what it will take to receive a steady positive ROI.
Get Started Today
Don’t hesitate, contact Theresa for immediate assistance in your cabin search; as a foremost expert in the purchase and maintenance of investment properties and an avid investor in the region herself, Theresa is more than able to find the perfect cabin for your budget, taste, and financial goals.