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    Investment Cabins in the Smokies Sample Expenses

    Investment Cabins in the Smokies: Sample Expenses


    Are you looking at log cabins for sale for investment?  In the Gatlinburg real estate market, this is a popular way to diversify financial holdings and enjoy your investment at the same time! To make an investment cabin work for you, it’s important to figure out income and expenses as closely as you can.  Here are sample expenses from 2010 for a 4-bedroom log cabin in Pigeon Forge taken from actual bills:


    Age of Home: 3 years

    Square Footage: 2974 s/f

    Construction:  Square Log / Metal Roof

    Taxes: $1360.90 (includes county and city of Pigeon Forge)

    Insurance: $1200 annually (includes upgrade for overnight rental coverage)

    Home Owners Association Fee: $98 per month

    Cable: $32 per month

    Pest Control: $15 per month

    Garbage Pickup: $15 per month

    Electric: $225 per month


    These expenses add up to $598.41, which would be added to the loan payment amount on a mortgage. (Many times taxes and insurance are added to the mortgage payment, so be sure and check that if you are figuring out your expenses).


    This particular cabin generates $31,000 in rental income annually, and the agreement that the owner has with the rental company is for a 60/40 % split, in favor of the owner.


    The owner’s split is $18,959.05 annually, or $1,579.92 a month.  This cabin will “cash flow” if the mortgage payment (if any) and additional expenses of $598.41 are less than that amount.


    This example is prepared for educational purposes only, and figures will vary from property to property.  To figure out the exact figures on a specific cabin, contact a member of our Team!

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