Some Gatlinburg Vacation Rentals Can Once Again Pay for Themselves!
After the rental management fee which is typically 40% of gross rentals, cabin owners still must pay for the utilities, taxes, and maintenance which will likely take another 10% (or even a little more depending upon the property) of gross rentals. This means that the typical Gatlinburg area vacation home will net to the owner about half of the total gross rental generated. When local real estate values skyrocketed in the bubble years, prices got way ahead of rentals and owners had no real chance of generating sufficient rentals to cover their expenses, much less provide any sort of return.
Due to the very difficult economic climate, Gatlinburg area real estate once again provides an excellent investment opportunity. Now that prices have come back to a more realistic level and interest rates remain low, buyers can find great bargains. Currently, it is occasionally possible to purchase a vacation rental property for only about half of what they sold for at the height of the real estate bubble years. Frequently these homes are available due to foreclosure and they are no longer furnished. Still, if you are buying at a level only roughly half of what the peak prices were, you can afford to invest in some furniture and appliances and still be WAY ahead of the game. To view foreclosure and short sale properties currently listed by all of the members of our Great Smoky Mountain Association of Realtors MLS, please click here. To get professional advice regarding how to find the very best investment properties in our area, please contact us!