Riverfront Airbnb Investment in Whitwell, Tennessee

7280 Mullins Cove Rd Whitwell, TN 37397

$899,000 | 4 Bedrooms | 3 Bathrooms | 7.0% Cap Rate

‍I'm Interested in this Property

Listing Description

Listing: Awning - Redfin - Zillow

Airbnb Estimator: Awning

Market Data: Airbnb Market Data

Welcome to this absolutely magical A-Frame Riverfront Home located at 7280 Mullins Cove Rd in Whitwell, TN! This stunning property is listed for $899,000 and presents an incredible investment opportunity for Airbnb investors.

Situated on a large private lot with a dock and detached garage with an apartment, this home offers complete privacy and a serene setting. The oversized windows flood the interior with natural light and provide stunning views of the surrounding trees, creating a treehouse-like atmosphere on the water.

The main home has been fully renovated, making it turnkey and ready for Airbnb rentals. With over six years of successful rental history and more than 200 positive reviews, this property has proven its potential as a lucrative income-generating asset. The home is to be sold fully furnished.

Conveniently located just 5 minutes away from Canoe Kayak Chattanooga and a 40-minute drive from Downtown Chattanooga, this property offers both tranquility and accessibility. It is not part of an HOA, meaning there are no restrictions, and it is not located in a flood zone.

Additional features of this property include a level lot, a screened porch, a deck, and a basement. The lot size is approximately 33,105 square feet, and the home spans 2,454 square feet.

For investors interested in assessing the financial potential, the property's estimated monthly Airbnb revenue is $10,400. The projected returns include a 7.0% cap rate, 7.9% cash-on-cash return in the first year, and a 10-year return of 20.8% per year. These figures are based on a proprietary formula and historical market data.

Don't miss out on this incredible opportunity to own a fully furnished A-Frame Riverfront Home with a successful Airbnb rental history.

The Airbnb Investment Financials

How much does the home cost?

$899,000  

‍How much will it earn on Airbnb?

$10,400 per month

How much will it cost to furnish it?

The listing mentions that the property is already fully furnished.

How much will it cost to renovate?

According to Awning, there is an estimated renovation cost of $5,000 to improve the house's appearance and ensure the property is rent-ready.

How much cash can you take home in the first year?

Based on the Awning Analysis provided in the listing, the estimated cash flow for the first year of owning this property is $15,044. This figure takes into account the projected monthly Airbnb revenue of $10,400 and subtracts the operating expenses, including property tax, insurance, utilities, repairs/maintenance, property management, and other associated costs. It is important to note that these projections are based on a proprietary formula and historical data, and actual results may vary.

What is the cap rate for this property?

The estimated cap rate is 7.0%.

‍All of the cap rates and returns for this property are estimates and are not intended as a guarantee of income or returns. Every investment has risks. It's important to discuss any investment, returns, regulations, laws and projections with a financial advisor, attorney or another fiduciary.

Whitwell Short-Term Rental Regulations

What are the short-term rental laws and regulations in Whitwell, Tennessee?

Running a short-term rental business in Tennessee is generally legal, but hosts must adhere to specific regulations to ensure guest safety and comply with state rules. Local authorities are generally not allowed to restrict short-term rentals unless it is necessary for public health and safety. In Tennessee, a short-term rental unit is defined as a residential dwelling that is rented out, either fully or partially, for a fee for less than 30 consecutive days. Such rentals are considered a type of hotel under the Tennessee Short-Term Rental Unit Act.

To comply with state regulations, short-term rental properties in Tennessee are expected to meet requirements for fire sprinklers, smoke alarms, and carbon monoxide alarms. Alarms should be installed in each sleeping area and regularly maintained. Although there is no statewide licensing requirement, property owners or management companies must have county and city business tax registrations for each jurisdiction where they operate short-term rental properties. The minimum requirement for registration and filing is $10,000 in taxable gross receipts per jurisdiction.

Business licenses are typically automatically renewed each year after filing and tax payment. Unfortunately, specific information regarding short-term rental laws unique to Whitwell, Tennessee, is not available. For accurate and detailed information, it is recommended to contact local government offices in Whitwell or consult a local real estate attorney knowledgeable in rental laws.

Is there a moratorium in short-term rentals in Whitwell, Tennessee?

Regarding licensing, short-term rental properties in Tennessee, including those on Airbnb, do not typically require a license at the state level. However, property owners or management companies should have county business tax registration and city business tax registration for each county or city where they operate a short-term rental property. The registration process with the Department of Revenue usually takes around 10 business days.

Why Airbnb Guests Stay In Whitwell, Tennessee

‍Where is Whitwell, Tennessee?

Whitwell is a town located in Marion County, Tennessee, United States. It is situated in the southeastern part of the state, approximately 24 miles northwest of Chattanooga. The town of Whitwell is nestled in the scenic Cumberland Plateau region of Tennessee.

What is there to do in Whitwell, Tennessee?

• Sequatchie Valley Scenic Byway: Take a scenic drive along this beautiful byway that passes through the stunning landscapes of the Sequatchie Valley. Enjoy picturesque views of rolling hills, farmlands, and charming rural communities.
• Marion County Park: Located nearby in Jasper, Tennessee, Marion County Park is a popular destination for outdoor enthusiasts. It features picnic areas, walking trails, a fishing pond, and sports facilities for activities like basketball, tennis, and softball.
• Foster Falls: Situated in nearby South Cumberland State Park, Foster Falls is a breathtaking waterfall cascading 60 feet into a deep pool. Hiking enthusiasts can enjoy the 1.5-mile trail leading to the falls, which offers scenic views and opportunities for rock climbing.
• Coal Miner's Museum: Learn about the region's coal mining history at the Coal Miner's Museum in nearby Monteagle, Tennessee. The museum showcases artifacts, photographs, and exhibits detailing the life and work of coal miners in the area.
• Outdoor Recreation: Whitwell and its surrounding areas provide opportunities for outdoor activities like hiking, camping, and fishing. Explore the nearby Prentice Cooper State Forest or visit Nickajack Lake for boating and fishing adventures.
• Chattanooga Attractions: While Whitwell is a small town, it is conveniently located near Chattanooga, which offers a wide range of attractions. Explore the Tennessee Aquarium, visit the Chattanooga Choo Choo, take a scenic riverboat cruise, or enjoy the vibrant downtown area with its shops, restaurants, and entertainment options.

What kinds of people travel to Whitwell, Tennessee?

• Nature Enthusiasts: Whitwell's location in the scenic Cumberland Plateau region makes it appealing to nature lovers. People who enjoy hiking, camping, birdwatching, and exploring natural landscapes may visit the area for its outdoor opportunities.
• History and Culture Buffs: Whitwell and its surrounding areas have a rich history, particularly related to coal mining. History enthusiasts may visit to learn about the coal mining industry or explore local museums and historical sites.
• Adventure Seekers: With nearby outdoor destinations like Foster Falls and Prentice Cooper State Forest, Whitwell attracts adventure seekers who enjoy activities such as rock climbing, rappelling, and trail exploration.
• Families: Whitwell can be a destination for families seeking a quieter and more relaxed environment away from larger cities. It offers opportunities for outdoor recreation, picnicking, and quality time together.
• Day Trippers: Whitwell's proximity to Chattanooga, which is less than a half-hour drive away, makes it an appealing destination for day trippers. People visiting Chattanooga may take a short detour to explore Whitwell and its nearby attractions as part of their itinerary.
• Local and Regional Visitors: Whitwell also welcomes local and regional visitors who may be interested in exploring neighboring towns and enjoying the small-town charm and hospitality of the area.

When are the busiest and slowest seasons for tourism in Whitwell, Tennessee?

Whitwell, Tennessee, experiences varying levels of tourism throughout the year. The busiest seasons for tourism are typically spring, summer, and fall. Springtime, from April to May, attracts nature enthusiasts and hikers who come to enjoy the pleasant weather and blooming landscapes. Summer, from June to August, sees visitors seeking outdoor activities like hiking, camping, and water sports in nearby lakes. Families also visit during summer vacation. Fall, from September to October, draws tourists with its stunning foliage in the surrounding Cumberland Plateau region. The vibrant colors of the changing leaves make this period particularly busy, especially during weekends.

On the other hand, the slowest season for tourism in Whitwell is winter, from December to February. The colder temperatures and potential for winter weather conditions limit outdoor activities, and the town sees fewer visitors during this time. Additionally, midweek periods throughout the year, especially during the winter months, tend to be quieter with fewer tourists.

It's important to note that specific events, holidays, or local festivals can also influence tourism levels in Whitwell. Additionally, the presence of nearby attractions, such as the Tennessee Aquarium or special events in Chattanooga, can impact visitation patterns. Checking local calendars, weather forecasts, and contacting accommodations in advance can provide more accurate information regarding the expected tourist activity during your planned visit to Whitwell.

How far is Whitwell, Tennessee from the nearest airport?

The nearest airport to Whitwell, Tennessee is Chattanooga Metropolitan Airport (CHA), which is approximately 36 miles southeast of Whitwell. The driving distance between Whitwell and Chattanooga Metropolitan Airport is typically around 45 minutes to an hour, depending on the traffic conditions and the specific route taken.

Are there any major events in Whitwell, Tennessee?

• Whitwell High School Homecoming: Like many schools, Whitwell High School celebrates an annual homecoming event, typically involving a football game, parade, and various activities for students, alumni, and the community.
• Marion County Fair: The Marion County Fair takes place in Jasper, Tennessee, which is near Whitwell. This annual event features agricultural exhibits, livestock shows, rides, games, live entertainment, and various fair food options.
• Sequatchie Valley Car and Truck Show: This event showcases classic cars and trucks, allowing enthusiasts to display their vehicles and compete for prizes. The car show typically features music, food vendors, and a festive atmosphere.
• Christmas Parades and Festivities: During the holiday season, Whitwell and surrounding towns may organize Christmas parades, tree lighting ceremonies, and other festive events to celebrate the season.

What Airbnb amenities do guests expect and pay a premium for in Whitwell, Tennessee?

• Scenic Views: Whitwell is known for its beautiful natural surroundings, so having accommodations with scenic views, whether it's mountains, forests, or valleys, can be highly desirable for guests.
• Outdoor Spaces: Given the appealing outdoor opportunities in the area, guests often appreciate Airbnb rentals with outdoor spaces such as patios, decks, or balconies. These spaces allow them to relax, enjoy the views, and spend time outdoors.
• Wi-Fi and Entertainment: In today's connected world, having reliable Wi-Fi is essential for many guests. Providing high-speed internet access, along with entertainment options like streaming services or cable TV, can enhance the overall guest experience.
• Kitchen and Cooking Facilities: Offering a well-equipped kitchen or kitchenette with modern appliances and cookware allows guests to prepare their meals, giving them flexibility and cost-saving options during their stay.
• Air Conditioning and Heating: Whitwell experiences varying weather conditions throughout the year, so providing effective heating and cooling systems to ensure guest comfort is important.
• Outdoor Activities Equipment: As outdoor recreation is a significant attraction in Whitwell, offering amenities like bicycles, hiking gear, or fishing equipment can be a bonus for guests looking to explore the area.
• Pet-Friendly Accommodations: Many travelers prefer pet-friendly accommodations that allow them to bring their furry companions along. Providing pet amenities and facilities can attract guests who travel with pets.
• Access to Local Attractions: Highlighting nearby attractions, such as hiking trails, waterfalls, or parks, and providing information about them can be helpful for guests looking to explore the area.

From Listing to Airbnb

1. Place an offer on this property: If you have a local real estate agent forward them this email and let them know you are interested in the property. If you want help finding the best representation, simply reply to this email and request an agent. Awning will get in touch with it’s network of agents. It’s best to be qualified for a mortgage, here is a list of lenders that work with Airbnb investors.
2. Close on the property: Closing on this property should be simple. An agent will help you review the contract and confirm that everything in the inspection report makes this a good deal.
3. Renovate and furnish the property: This property is easy to renovate and furnish. Then you’ll need some items, which you can find in this Airbnb Host Checklist.
4. Gather necessary documents and permission: You’ll want to consult Tennessee Short Term Rental Laws. In most cases, you won’t require an attorney as the paperwork process is straightforward.
5. List the property on Airbnb: To list your property on Airbnb you’ll need a description, title and professional photography.
6. Manage the Airbnb: If you choose to self-manage the Airbnb you should not have much trouble finding reliable cleaners in the area.

Awning Management: If you choose to use Awning Property Management we can take care of gathering documents and list the property for you. You can learn more about Awning Property Management or reach our team by responding to this email.