It happened again today! I posted a newly available Gatlinburg residential rental home this morning and it was leased today by the very first couple that saw it. There is currently a seemingly unquenchable demand for residential rental properties in our Gatlinburg/Pigeon Forge/Sevierville area. In fact, the strong appetite for these rentals is present all across Sevier County, including the northern areas of the county such as Boyd’s Creek, Kodak, and Seymour.
Savvy investors have for some time been purchasing properties suitable for renting to tenants who are looking for reasonably affordable places to live. The very tight rental market has caused the supply of entry level real estate properties to also constrict dramatically. In fact, it is amazing what $100,000 will no longer buy in Sevier County. To illustrate better what I am describing, take a look at this VERY short list of three bedroom, two bath site built homes with at least 1100 square feet and a two car garage or carport in Sevier County priced at or below $100,000. In fact, as of today only this one termite infested and water damaged short sale satisfies all of the above specifications.
Even dropping the square footage and garage/carport requirements doesn’t yield many more 3 bedroom, 2 bath Sevier County site built properties. The first property in this link is in a very unattractive location on the back side of English Mountain, in a community of mainly mobile homes. All but one of the others are new construction homes that have yet to be built and will certainly have mandatory additional expenses like appliances, upgrades, etc.
To sum it up, there just aren’t many decent homes to be had in Sevier County priced under $100,000. Why this shortage of affordable houses? The answer is quite simply demand. The under $100,000 market in Sevier County during 2014 was extremely active and that continues to be the case. Because the rental market is so tight, these relatively modest homes can rent for as much as $1,000/month. If you do the math, the return on investment for these properties is still exceptional, if you can find one…