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NewsseparatorAirbnb Deals

Airbnb for Sale Smoky Mountains: 7.0% Cap Rate in Sevierville, TN

1244 Bird Nest Way Sevierville, TN 37862

$1,315,000 | 3 Bedrooms | 4 Bathrooms | 7.0% Cap Rate

Listing: Awning - Redfin - Zillow

Airbnb Estimator: Awning

Market Data: Airbnb Market Data

Escape to the beautiful Smoky Mountains and make an investment in your future with this stunning cabin located in the desirable Black Bear Ridge resort. This 3-bedroom, 3.5-bathroom cabin boasts an indoor heated pool, theater/game room, and breathtaking mountain views. With a sleeping capacity of up to 14 guests, this property generated nearly $165,000 in rental income in 2021, making it an incredible investment opportunity.

Just minutes away from popular attractions such as the Wears Valley Zipline Adventures, The Island in Pigeon Forge, and Dollywood, this cabin is perfectly situated to attract vacationers year-round. And with an HOA fee of only $125/month, you can rest easy knowing that your investment is well-protected.

With a furnishing budget of $37,500 included, and an estimated renovation cost of only $5,000 to ensure the property is rent-ready, this turnkey investment opportunity is just waiting for you. Contact our experienced real estate agent, Humberto Marquez, with any questions you may have and start your journey towards financial freedom today!

I'm Interested in this Property

The Airbnb Investment Financials

How much does the home cost?


How much will it earn on Airbnb?

$13,800 per month

How much will it cost to furnish it?

$37,500. This includes the cost of designing the space, the cost of 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?

According to the listing information, the estimated renovation cost for this property is $5,000. This includes some additional repairs to improve the appearance of the house and to ensure that the property is rent-ready.

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

Based on the information provided, it seems that the property is listed for sale and has a potential to generate rental income of nearly $165,000 in 2021. The Awning Agent estimates that furnishing the property will cost $37,500 and an additional $5,000 for repairs to ensure the property is rent-ready. The monthly estimated Airbnb revenue is $13,800, with a year one cash-on-cash return of 7.8%. The appreciation rate is projected at 5.7%, and the monthly cash flow is estimated to be $1,989. The home value is listed at $1,315,000.

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.

Sevierville Short-Term Rental Regulations

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

Sevierville, Tennessee has laws and regulations regarding short-term rentals. Individuals who wish to operate a short-term rental in the city must apply for a Zoning Compliance Certificate. The City of Sevierville has also created a website that provides step-by-step instructions on how to obtain a permit for a short-term rental. Additionally, the Tennessee legislature passed the Short-Term Rental Unit Act, which provides guidance on how municipalities can regulate short-term rental units. It is recommended to review the legislation in detail to understand all the regulations surrounding short-term rentals in Sevierville.

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

There is currently no moratorium on short-term rentals in Sevierville, Tennessee.

Why Airbnb Guests Stay In Sevierville, Tennessee

Where is Sevierville, Tennessee?

Sevierville is a city located in eastern Tennessee, United States. It is situated in Sevier County, in the foothills of the Great Smoky Mountains. Sevierville is approximately 30 miles southeast of Knoxville and is surrounded by several popular tourist destinations, including Pigeon Forge and Gatlinburg.

What is there to do in Sevierville, Tennessee?

  • Great Smoky Mountains National Park: Sevierville is located near the entrance to the Great Smoky Mountains National Park, which offers hiking trails, scenic drives, waterfalls, wildlife viewing, and more.
  • Dollywood: This popular theme park, owned by Dolly Parton, offers roller coasters, water rides, live entertainment, and more.
  • Tanger Outlets: Shoppers can visit this outlet mall for deals on popular brands like Nike, Adidas, and Coach.
  • NASCAR SpeedPark: This family-friendly attraction offers go-kart tracks, mini-golf, bumper boats, and more.
  • Forbidden Caverns: Visitors can take a guided tour of these underground caverns to see unique rock formations, underground waterfalls, and more.
  • The Apple Barn: This attraction includes a restaurant, bakery, and country store where visitors can sample homemade apple pies, cider, and other treats.
  • Douglas Lake: Located just outside Sevierville, this lake offers fishing, boating, and other water activities.
  • Sevierville Historic Downtown: Visitors can explore the charming downtown area, which features local shops, restaurants, and historic buildings.
  • Flyaway Indoor Skydiving: This indoor skydiving facility offers visitors the experience of skydiving in a safe, controlled environment.
  • Titanic Museum Attraction: This museum features interactive exhibits and artifacts from the famous Titanic ship.

What kinds of people travel to Sevierville, Tennessee?

  • Nature Enthusiasts: Sevierville attracts people who appreciate the beauty of the Great Smoky Mountains National Park and the surrounding natural landscapes. They come to hike, camp, go bird-watching, and enjoy outdoor activities like fishing, biking, and horseback riding.
  • Family Vacationers: Sevierville is a popular destination for families due to its numerous family-friendly attractions. Families come to visit Dollywood, a renowned theme park owned by Dolly Parton, which offers thrilling rides, entertainment shows, and live music. The area also features water parks, mini-golf courses, go-kart tracks, and interactive museums tailored for children.
  • Shopaholics: Sevierville is known for its outlet malls, such as Tanger Outlets, which draw in shoppers seeking great deals on a wide range of branded products. Visitors come to browse through the numerous stores offering clothing, accessories, home goods, and specialty items.
  • RV and Camping Enthusiasts: Sevierville is a hub for recreational vehicle (RV) travelers and camping enthusiasts. The area offers a variety of RV parks and campgrounds equipped with amenities to accommodate those who prefer the freedom and adventure of camping and exploring the region's natural beauty.
  • Music and Entertainment Lovers: The region's rich musical heritage, including country and bluegrass genres, attracts music enthusiasts to Sevierville. Live music performances, concerts, and music festivals held throughout the year provide ample opportunities for visitors to immerse themselves in the local music scene.
  • Wedding and Honeymooners: Sevierville's scenic landscapes, charming wedding venues, and romantic atmosphere make it a popular destination for couples seeking a picturesque backdrop for their wedding ceremonies or honeymoon retreats. The area offers a range of accommodation options, from cozy cabins to luxury resorts, catering to couples' needs.
  • History and Culture Buffs: Sevierville has a history deeply rooted in Appalachian culture and heritage. Visitors interested in history can explore the area's historic sites, including the birthplace of Dolly Parton and the Harrisburg Covered Bridge. They can also delve into the region's cultural heritage through museums and exhibits dedicated to preserving and showcasing the local history.
  • Food Enthusiasts: Sevierville boasts a vibrant food scene, with a wide array of restaurants serving Southern cuisine, BBQ, and local specialties. Food lovers visit Sevierville to savor traditional Southern flavors, try regional delicacies, and indulge in homestyle cooking and comfort food.
  • Event and Festival Attendees: Sevierville hosts various events and festivals throughout the year, attracting attendees from near and far. These include holiday celebrations, craft fairs, car shows, music festivals, and seasonal events that offer entertainment, unique shopping opportunities, and a chance to experience the local community's vibrant spirit.

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

The busiest season for tourism in Sevierville, Tennessee, is typically during the summer months, especially in July and August when many families are on vacation. The autumn season can also be busy, particularly in October when the fall foliage is at its peak.

The slowest season for tourism in Sevierville is generally during the winter months, particularly from January through March when temperatures can be chilly and the area receives occasional snowfall. However, the winter season can also be a popular time for visitors who come to enjoy winter sports such as skiing and snowboarding at nearby resorts.

How far is Sevierville, Tennessee from the nearest airport?

The nearest airport to Sevierville, Tennessee is McGhee Tyson Airport (TYS), located in Knoxville, which is approximately 28 miles away. It typically takes around 30-40 minutes to drive from the airport to Sevierville, depending on traffic conditions. Other airports in the area include Asheville Regional Airport (AVL), located approximately 85 miles away, and Chattanooga Metropolitan Airport (CHA), located approximately 115 miles away.

Are there any major events in Sevierville, Tennessee?

  • Bloomin' Barbeque & Bluegrass: This event takes place annually in May and combines mouthwatering barbeque competitions with live bluegrass music. Visitors can enjoy sampling delicious barbeque from professional cook-off teams, attend concerts by renowned bluegrass musicians, and participate in various activities and crafts.
  • Smoky Mountain Harvest Festival: Held from September to November, this festival celebrates the beauty of autumn in the Smoky Mountains. It features stunning fall foliage, seasonal decorations, and a variety of events including craft shows, music performances, and harvest-themed activities.
  • Sevierville's 4th of July Celebration: Sevierville hosts a vibrant Independence Day celebration, including a spectacular fireworks display, live music, food vendors, and family-friendly activities. The event attracts both locals and visitors who come to enjoy the festive atmosphere and patriotic spirit.
  • Smoky Mountain Winterfest: From November to February, Sevierville, along with neighboring towns, transforms into a winter wonderland for the Smoky Mountain Winterfest. The event features millions of twinkling lights, holiday-themed displays, parades, and festive activities, creating a magical atmosphere for visitors.
  • Sevierville's Christmas Parade: This annual Christmas parade, held in December, brings the community together to celebrate the holiday season. Spectators line the streets to enjoy the procession of colorful floats, marching bands, performers, and Santa Claus himself.
  • Wilderness Wildlife Week: Wilderness Wildlife Week is a week-long event held in May that focuses on the natural beauty and wildlife of the Great Smoky Mountains. It includes guided hikes, educational seminars, photography workshops, live animal encounters, and interactive exhibits, attracting nature enthusiasts and outdoor lovers.
  • Smoky Mountain Tunes & Tales: From June to August, Sevierville hosts Smoky Mountain Tunes & Tales, an event that showcases Appalachian music, storytelling, and historical reenactments. Visitors can enjoy performances by musicians, storytellers, and artisans as they wander through the streets of downtown Sevierville.

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

  • Hot Tub: Sevierville's scenic surroundings and relaxing atmosphere make hot tubs a highly sought-after amenity. Guests often appreciate the opportunity to unwind and soak in a private hot tub, especially after a day of exploring the Great Smoky Mountains or enjoying outdoor activities.
  • Mountain Views: Given the area's natural beauty, accommodations with stunning mountain views are in high demand. Guests are often willing to pay a premium for rentals that offer picturesque vistas of the Smoky Mountains, allowing them to enjoy the serene and breathtaking landscapes.
  • Private Pool: During the warmer months, having a private pool can be a significant draw for guests. The ability to cool off and enjoy a refreshing swim without sharing the pool with others is a desirable amenity, especially for families or groups traveling together.
  • Game Room: Accommodations that provide a dedicated game room or entertainment area are popular among guests, particularly those traveling with children or seeking indoor entertainment options. Game rooms often feature pool tables, foosball, arcade games, board games, or even home theater systems, providing a fun and entertaining space for guests.
  • Outdoor Living Space: Sevierville's pleasant climate and natural surroundings make outdoor living spaces highly valued. Accommodations with spacious decks, patios, or balconies equipped with comfortable seating, dining areas, and grills are often sought after by guests who wish to relax and enjoy outdoor meals, gatherings, or simply take in the scenic views.
  • Fireplace: Whether it's a traditional wood-burning fireplace or a cozy gas fireplace, guests often appreciate the ambiance and warmth they provide, especially during the colder months. A fireplace adds a touch of comfort and creates a cozy atmosphere for guests to relax and unwind.
  • Pet-Friendly Amenities: Sevierville is a popular destination for pet owners who want to bring their furry companions along. Accommodations that offer pet-friendly amenities such as fenced yards, pet beds, bowls, or easy access to nearby pet-friendly parks and trails can attract guests looking for pet-friendly options.
  • Fully Equipped Kitchen: Guests who prefer the convenience of preparing their own meals look for accommodations with fully equipped kitchens. Having essential appliances, cookware, and utensils allows guests to save money on dining out and enjoy home-cooked meals during their stay.
  • High-Speed Internet/Wi-Fi: In today's connected world, reliable and high-speed internet access is often considered an essential amenity. Guests may be willing to pay extra for accommodations that offer fast and uninterrupted internet access, allowing them to stay connected, work remotely, stream movies, or browse the web without any inconvenience.

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.

Become a better host and investor in just 5 minutes

Get the daily newsletter that makes learning about real estate investing fun. Stay informed and engaged, for free.

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