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Earning Rental Income from a Gatlinburg Cabin


Gatlinburg has a small but thriving community of property owners. The 2000 census estimated that 3,300 people live year-round in Gatlinburg. Every year, there are hundreds of Gatlinburg cabins for sale and many new buildings continue to be developed.

The purchase of Gatlinburg cabins has picked up in recent years as more people view second homes as profitable investment alternatives. Indeed, most of the cabins sold in Gatlinburg each year are bought with rental income in mind. In considering where to buy a rental cabin, one benefit of Gatlinburg is its prime location - within a day's driving distance of half the American populace.

Even when purchasing a Gatlinburg cabin, no good investment comes without a cost. Down payments tend to run between 10% and 20% of the full price of the cabin, which typically ranges from $225,000 to $500,000. Loans incurred in the purchase of a Gatlinburg therefore range anywhere from $175,000 to $425,000. Total annual expenses - including mortgage, rental management fees, utilities, property taxes, insurance, association dues, annual tourist residency permits, and repairs and maintenance - can run from $30,000 to $75,000 a year.

Now for the good news: rental income offsets the cost of purchasing a Gatlinburg cabin. An individual homeowner or homeowner association can hire a Gross annual rental income can easily reach $25,000 to $85,000 a year. Depending on the size of mortgage payment and rental income, positive net cash flow can reach $4,000 to $11,000 in the first year alone. This projection does not even take into account the fact that the market value of a Gatlinburg cabin may appreciate over time. Many cabin owners have experienced appreciation of 7% to 14% a year!

In addition to being a fantastic investment opportunity, there are many advantages other of purchasing a Gatlinburg cabin. A Gatlinburg cabin makes a wonderfully relaxing second-home and convenient summer getaway. Many Gatlinburg cabins for sale are embedded in communities that boast features such as swimming pools, clubhouses, and central patios. Gatlinburg is extremely hospitable to pets as well as children of young families. There are several nearby attractions within a short drive, such as Dollywood, Ober Gatlinburg, and Ripley's Aquarium of the Smokies.

There are several Gatlinburg cabin associations and realtors online who can assist you directly with the buying process.

Gatlinburg Cabins Info provides information on Gatlinburg cabins, Gatlinburg cabin rentals, properties for sale, weddings and related topics. Gatlinburg Cabins Info is the sister site of Pigeon Forge Cabins Web.


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Vacation Rentals - Google News

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