Finders Keepers: An Airbnb Investor's Gem in Gatlinburg

1827 Elk Springs Way Unit Finder Keepers Gatlinburg, TN 37862

$1,079,000 | 4 Bedrooms | 3 Bathrooms | 7.5% Cap Rate

‍I'm Interested in this Property

Listing Description

Listing: Awning - Redfin - Zillow

Airbnb Estimator: Awning

Market Data: Airbnb Market Data

Are you an Airbnb investor seeking a valuable addition to your portfolio? We introduce you to Finders Keepers - a lucrative four-bedroom cabin nestled in the heart of Gatlinburg. This property offers not only high rental income and low operating costs but also stands out with unique features like a private theatre room, natural gas heating, and easy access location. All these traits make it a perfect match for your Airbnb investment aspirations.

Finders Keepers presents a compelling investment opportunity for Airbnb investors. With its record rental income, an array of amenities, low operating costs, and a prime location in the esteemed Elk Springs Resort, this property stands out as a prime investment choice. Coupled with the excellent property management and affordability of the HOA fee, the potential return on investment makes this property a must-consider for any Airbnb investor. Don't miss out on this opportunity to capitalize on the thriving short-term rental market in Gatlinburg.

The Airbnb Investment Financials

How much does the home cost?

$1,079,000  

‍How much will it earn on Airbnb?

$12,500 per month

‍How much will it cost to furnish it?

According to the provided information, the estimated furnishing budget for the property at 1827 Elk Springs Way Unit Finder Keepers in Gatlinburg, TN is $42,040. This budget includes the cost of designing the space, the furniture throughout the entire home, outdoor amenities that are shown to increase average daily rates (ADR), and the cost of shipping and assembly of furniture.

How much will it cost to renovate?

Based on the information provided, the estimated renovation cost for the property at 1827 Elk Springs Way, Gatlinburg, TN 37862, is $5,000. This cost is intended to cover additional repairs to improve the house's appearance and to ensure the property is rent-ready.

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

According to the data provided, the expected net operating income (operating income minus operating expenses) for the first year is $84,533. After subtracting the mortgage payments ($58,814), the expected cash flow for the first year is $25,719.

Please note that these are estimates and the actual amount could vary depending on several factors such as changes in rental income, variations in expenses, and changes in mortgage interest rates. Also, remember to factor in your initial investment, including down payment, furnishing cost ($42,040), and renovation cost ($5,000).

‍What is the cap rate for this property?

The estimated cap rate is 7.5%.

‍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.

Gatlinburg Short-Term Rental Regulations

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

In Gatlinburg, Tennessee, vacation rental property owners are required to follow several regulations. Firstly, they need to obtain a business license and pay a combined sales tax of 9.5%, with 7% going to Tennessee and 2.5% directed to Sevier County. Short-term rentals, including those on platforms like Airbnb, are legal for non-owner occupied properties.

Gatlinburg's local regulations refer to these as "Tourist Residences", and they require an annual Tourist Residence Permit.

Regarding parking, the city mandates off-street parking, with requirements determined by the maximum sleeping accommodations of the tourist residence. In no case can there be less than two on-site parking spaces, with the exception of single bedroom units, which require just one.

The city also sets standards for buildings and housing, and the property must meet all applicable city code requirements for transient residents. This includes minimum standards for building, design, maintenance, habitability, health, and safety.

Before a property can be used as a short-term rental, the city requires administrative review and approval of a site plan. This site plan must show the location of the main and any accessory buildings, off-street parking provisions, and any other site information requested by the city's Planning and Building Inspections Departments.

In terms of taxes, the hotel/motel tax is 3% of total gross hotel sales, leading to a total sales tax of 12.75% (3% for the city, 9.75% for the state of Tennessee).

Lastly, it is essential for property owners to understand and abide by any other contracts or rules that bind them, such as leases, condo boards, co-op rules, HOA rules, or rules established by tenant organizations. As these regulations can be complex, it's recommended to consult a local expert or legal professional to ensure full compliance.

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

As of now there is no moratorium on short-term rentals in Gatlinburg, Tennessee.

Why Airbnb Guests Stay In Gatlinburg, Tennessee

‍Where is Gatlinburg, Tennessee?

Gatlinburg is a city located in the southeastern part of the United States, specifically in the state of Tennessee. It is situated in Sevier County, which is in the eastern part of Tennessee near the border with North Carolina. Gatlinburg is nestled in the scenic Great Smoky Mountains and is known for its picturesque mountain views, outdoor recreational opportunities, and tourist attractions.

‍What is there to do in Gatlinburg, Tennessee?

• Great Smoky Mountains National Park: As Gatlinburg is located on the doorstep of the Great Smoky Mountains National Park, outdoor enthusiasts can explore the park's hiking trails, enjoy scenic drives, go wildlife spotting, and experience the natural beauty of the mountains.
• Ober Gatlinburg: This mountain-top amusement park and ski resort offers a variety of activities throughout the year, including skiing, snowboarding, ice skating, wildlife encounters, alpine slides, a scenic chairlift, and a mountain coaster.
• Gatlinburg Space Needle: The Gatlinburg Space Needle is an observation tower that provides panoramic views of the city and the surrounding Smoky Mountains. It also features an arcade and a 360-degree observation deck.
• Ripley's Aquarium of the Smokies: This popular attraction showcases a variety of marine life, including sharks, stingrays, sea turtles, and colorful fish. Visitors can walk through an underwater tunnel, participate in interactive exhibits, and enjoy live shows.
• Gatlinburg SkyLift Park: This park features a scenic chairlift ride that takes you to the top of Crockett Mountain. At the summit, you can enjoy breathtaking views, walk across the SkyBridge (the longest pedestrian suspension bridge in North America), and explore the mountain's trails.
• Gatlinburg Arts and Crafts Community: Known as the largest independent organization of artisans in the United States, this community features over 100 shops, studios, and galleries showcasing handmade crafts, pottery, artwork, jewelry, and more.
• Dollywood: While not directly in Gatlinburg, Dollywood is a popular theme park located in nearby Pigeon Forge. Owned by country music superstar Dolly Parton, the park offers thrilling rides, live entertainment, shows, and a water park.
• Shopping and Dining: Gatlinburg is home to a wide array of shops, boutiques, and specialty stores where you can find unique crafts, souvenirs, and local products. The city also offers a diverse selection of restaurants, ranging from Southern cuisine to international flavors.

‍What kinds of people travel to Gatlinburg, Tennessee?

• Nature Enthusiasts: Gatlinburg's proximity to the Great Smoky Mountains National Park makes it a popular destination for outdoor enthusiasts. Hikers, campers, birdwatchers, and nature lovers visit the area to explore the park's trails, enjoy scenic drives, and immerse themselves in the natural beauty of the mountains.
• Families: Gatlinburg is a family-friendly destination with numerous activities and attractions suitable for all ages. Families visit the city to enjoy theme parks like Dollywood, wildlife encounters, interactive museums, and other entertainment options tailored to children and parents alike.
• Adventure Seekers: Gatlinburg offers a range of adventurous activities, such as zip-lining, whitewater rafting, mountain biking, rock climbing, and skiing (in winter). Adrenaline junkies and thrill-seekers are drawn to these exciting outdoor adventures.
• Couples and Romantics: With its picturesque mountain views, cozy cabins, romantic restaurants, and scenic spots, Gatlinburg is a popular destination for couples seeking a romantic getaway or a honeymoon retreat. The serene atmosphere and charming ambiance make it an appealing choice for those looking to spend quality time together.
• Art and Craft Enthusiasts: Gatlinburg is home to the Gatlinburg Arts and Crafts Community, a haven for art lovers and collectors. People interested in handmade crafts, pottery, artwork, and unique artisanal items visit the community's numerous shops and galleries.
• Tourists seeking a Mountain Retreat: Many individuals seek Gatlinburg as a peaceful escape from busy city life. They come to enjoy the tranquility, fresh mountain air, scenic beauty, and the opportunity to relax in a serene mountain setting.
• Tourists exploring the Appalachian Region: Gatlinburg serves as a gateway to the Appalachian region, attracting visitors interested in exploring the cultural heritage, history, and natural wonders of the area. People may visit Gatlinburg as part of a broader tour of the region, including nearby towns, national parks, and landmarks.

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

The busiest season for tourism in Gatlinburg, Tennessee, tends to be during the summer months, specifically from June to August. This period coincides with school vacations and warmer weather, making it an ideal time for families to visit the area. The Great Smoky Mountains National Park and attractions in Gatlinburg draw large crowds during this time, resulting in increased tourist activity.

Another busy period is the fall season, particularly in October. The area is renowned for its stunning fall foliage as the leaves change color, attracting visitors who come to witness the vibrant display of autumn hues. The peak of the fall foliage season can bring a significant influx of tourists to Gatlinburg and the surrounding areas.

On the other hand, the slowest season for tourism in Gatlinburg is typically during the winter months, especially January and February. Although winter sports enthusiasts may visit for skiing and snowboarding at Ober Gatlinburg, overall tourist numbers tend to be lower during this time. The colder weather and potential for inclement conditions contribute to the reduced tourist activity.

Spring, particularly the months of March and April, can be a transitional period for tourism in Gatlinburg. The weather begins to warm up, and visitors may come to enjoy outdoor activities and witness the beauty of blooming flowers and trees. While it may not be as busy as the summer or fall seasons, it can still see a moderate influx of tourists.

How far is Gatlinburg, Tennessee from the nearest airport?

The nearest airport to Gatlinburg, Tennessee, is McGhee Tyson Airport (TYS), which is located in Alcoa, Tennessee. The airport is approximately 41 miles (66 kilometers) west of Gatlinburg. The driving time from McGhee Tyson Airport to Gatlinburg is typically around 1 hour, depending on traffic conditions and the route taken.

When traveling from the airport to Gatlinburg, there are several transportation options available, including rental cars, taxis, shuttle services, and rideshare apps like Uber and Lyft. It's advisable to check with the airport or your accommodations for transportation recommendations and services available to ensure a smooth and convenient journey to Gatlinburg.

‍Are there any major events in Gatlinburg, Tennessee?

• Gatlinburg's 4th of July Midnight Parade: This popular event takes place on the evening of July 3rd and features a parade through downtown Gatlinburg, starting at midnight. It is one of the nation's first Independence Day parades and draws a large crowd.
• Gatlinburg Craftsmen's Fair: Held in July and October, this fair showcases the work of local artisans and craftsmen. Visitors can explore a wide variety of handmade crafts, artwork, jewelry, and more. The fair also features live music, demonstrations, and food vendors.
• Smoky Mountain Tunes & Tales: This event runs during the summer months, typically from June to August. It celebrates Appalachian music, storytelling, and traditional craftsmanship. Visitors can enjoy live performances by musicians, storytellers, and artisans in downtown Gatlinburg.
• Smoky Mountains Songwriters Festival: Held in August, this festival brings together songwriters from various genres to perform and share their original music. It features concerts, workshops, and opportunities for aspiring songwriters to showcase their talents.
• Winter Magic Kickoff and Chili Cookoff: This event marks the start of Gatlinburg's Winter Magic season in November. It includes a festive lighting ceremony, live entertainment, and a chili cookoff competition.
• Gatlinburg Festival of Trees: Taking place in November, this event features elaborately decorated Christmas trees on display at the Gatlinburg Convention Center. Visitors can admire the creative tree designs and participate in various holiday-themed activities.

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

• Mountain Views: Gatlinburg is known for its stunning mountain vistas, and accommodations offering unobstructed mountain views are highly desirable. Properties with balconies, decks, or large windows that showcase the picturesque scenery are often in high demand.
• Hot Tubs and Jacuzzis: Gatlinburg's mountainous setting creates a cozy and relaxing atmosphere, and having a private hot tub or Jacuzzi is a sought-after amenity for many guests. The opportunity to unwind and soak in a hot tub while enjoying the scenic surroundings is often considered a luxurious feature.
• Fireplaces: Especially during the colder months, having a fireplace is a popular amenity that adds warmth and ambiance to the accommodation. Whether it's a traditional wood-burning fireplace or a gas or electric option, fireplaces are often highly valued by guests.
• Outdoor Spaces: Gatlinburg's natural beauty encourages outdoor activities and appreciation of the surroundings. Properties with outdoor spaces like patios, decks, or gardens provide guests with the opportunity to relax, enjoy meals, or gather with friends and family while taking in the fresh mountain air.
• Game Rooms and Entertainment: Gatlinburg attracts families and groups, and properties with game rooms or entertainment options, such as pool tables, foosball tables, arcade games, or home theaters, can be appealing to guests seeking additional recreational activities during their stay.
• Full Kitchens: Many guests prefer accommodations with fully equipped kitchens, including appliances, cookware, and utensils. Having the ability to prepare meals or snacks can offer convenience, flexibility, and potential cost savings compared to dining out for every meal.
• High-Speed Internet and Smart TVs: In today's digital age, reliable high-speed internet access is often expected by guests. Additionally, having smart TVs with streaming capabilities or access to popular streaming services like Netflix, Hulu, or Disney+ can enhance the in-room entertainment experience.
• Pet-Friendly Accommodations: Gatlinburg is a destination that attracts travelers with pets. Offering pet-friendly accommodations, including amenities such as pet beds, food bowls, and outdoor areas suitable for pets, can be a significant draw for guests traveling with their furry companions.

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.‍
7. 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.